Along with CNW Research and NADA Used Car Guide, took a look at how harsh hurricane conditions are likely to affect used vehicle prices in the short-term…
Ray Zhou, director of analysis at Edmunds.com, offered this forecast:
• Used vehicle prices will be increasing $700 to $1,000 in the impacted are short term due to damages done to dealer inventories and supply chains. However the increase should be short term.
• One reason for the short-term increase is expected to be that dealers can get needed supply from non-affected distant areas much more quickly these days.
• Another reason is that insurance companies are going to pay more for damaged and destroyed vehicles than a dealer would do on a trade.
Black Book’s Ricky Beggs had similar insights into how the storm may affect the used-car market in the coming months. This will affect market prices and inventory levels a great deal on the East Coast, New England, and into the South, he said. There will be a need to replace damaged vehicles causing a little bit a price bump in the market, Beggs said.