Canada’s largest publicly held dealership group is entering the used-vehicle auction market, with its eye on expansion.
Edmonton’s AutoCanada Inc. has bought North Toronto Auction (NTA), a fee-based used-vehicle auction business based in Innisfil, Ont. and serving dealers and consumers.
Financial terms of the deal were not disclosed.
Founded in 2002, North Toronto Auction says it has historically transacted over 5,000 vehicles per year through in-house, in-person and online auctions using proprietary digital auction software.
“NTA has the ability to be utilized as a wholesale engine, balancing and redistributing vehicles inside and outside the AutoCanada network across North America, through a frictionless inventory management and transfer process,” AutoCanada said in a news release. “NTA is also a source of vehicles as its sales team sources auction vehicles from governments, financial institutions, repossession companies, dealerships, rental fleets, and more.”
AutoCanada says “the acquisition unlocks additional growth opportunities for NTA’s experienced management team to scale the auction business and add other locations across Canada.”
“This represents our initial foray into the auction business; however, many of the successful used vehicle operators in the U.S. also own their own auctions as it allows for the vertical integration of inventory management and a reduction in fees paid to auctions,” AutoCanada Executive Chairman Paul Antony said.
AutoCanada says it will retain NTA’s management team.