How Superstorm Sandy May Be Impacting Used Car Prices and Volumes

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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.

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