It is predicted that used vehicles prices are going to rise nationally due to super-storm Sandy. It is reportedly being said that Hurricane Sandy has damaged about 250,000 used cars on East Coast. This sudden increase of used cars price puts pressure on what already is a tight supply of well-maintained latest second hand cars. According to National Auto Dealers Association, Hurricane Sandy has damaged late-model used-vehicles to see a price increase of 0.5 – 1.5% in Dec. NADA analyst, Jonathan Banks said that more amounts (about $50 to $175) would be charged for used cars, depending on its condition.
Edmunds.com, Automotive Information Company determines a higher forecast, saying used vehicle prices will reach up $700 to $1000. Jonathan Banks said while it is going to leave a greater impact on the East Coast, the other areas are not protected. It estimates that 20 percent of new vehicles in the US come from Northeast and Mid-Atlantic region that were affected by Hurricane Sandy.
He explained that many dealers are located, regardless of their premises, buying things online. According to him, geography isn’t that important as it was before. Earlier, dealers would purchase inexpensive vehicles from a physical auction near their location, but now they buy online. Banks said pulling huge quantity of vehicles out of the country will have an effect at the nationwide level.
The trouble would be compounded by minimum tens of thousands of new vehicles, which were damaged both at storage yards and dealerships in New Jersey and New York. Most of dealers lost a significant amount of money and Banks said one of the Honda dealers lost about 600 new cars.
The Anaheim-based Fisker automaker that builds $100,000 worth plug-in sports cars has lost 30 units with a retail value of $30 million in New Jersey; however, the spokesperson said the vehicles were insured and it won’t suffer financial loss.
Toyota Motors has lost as many as 4,500 Lexus, Scion, and its-own Toyota new units to storm and flooding damage. All these are going to trouble the automaker big time as many customers in that region may need to replace their vehicles quickly. Costs could go up for shoppers purchasing autos right away as they’ll soon run into a severe supply shortage.
The local dealers believe that replacement purchasing will start in mid November, but will pick up in next month and run until Feb or March, 2013. Moreover, the time for people to collect their damaged charges from insurance companies would expand.