The Hurricane Sandy has had a devastating effect on the market and community. People are still trying to recover from the consequences of the hurricane but it is sure that its ripple effect will be felt over the coming weeks and months. One of the adverse effects that is becoming evident is its influence on the used car market.
According to a report from Detroit Press, Sandy has destroyed over 250,000 vehicles that have created a shortage that can cause rise in prices of used vehicles all over the United States. The National Dealers Association has postulated that used car prices can witness an increase of about 0.5 percent to 1.5 percent. This may not seem like a big amount (about $50 to $175 per car) but according to Edmunds.com the prices can rise by up to $700 to $1000 per vehicle for short period.
But how could a dealer in another part of America be affected by the hurricane that has completely another part? Actually most of the dealers work with the auction houses, where cars from different parts are imported in order to fulfill the demands. This means that is a quarter of a million vehicles are absent then it will be affecting everyone.