Used-car prices are approaching to rise $200 to $1,000 national since Superstorm Sandy wiped out as many as 250,000 new and used vehicles.
Buyers already are starting to uncover adult during dealers to reinstate a 100,000 to 250,000 vehicles that a National Automobile Dealers Association estimates were mislaid to a charge that ravaged New York’s Staten Island and coastal New Jersey.
“This weekend was intensely busy,” says Brian Benstock, ubiquitous manager of Paragon Honda in a Queens precinct of New York.
He estimates half of a buyers over a weekend were those looking for replacements for storm-damaged vehicles.
Edmunds.com, a automobile buyers’ investigate website, says prices could rise $700 to $1,000 a automobile since reserve are limited.
Economists for dual of a nation’s largest indiscriminate automobile auctions contend they design a remarkable detonate of demand could lift used-car prices by adult to 2(PERCENT) — about $200 on a $10,000 automobile — above normal.
“It’s really going to lift used-car demand,” says Tom Kontos, executive clamp boss for Adesa Analytical Services, a consulting arm of one large auction.
“It’s going to keep prices aloft than it differently would be.”
Although prices will be higher, many buyers might not notice. Before a storm, prices had been flapping down as they typically do in a fall, Kontos says.
The normal cost of a recent-model used cars sole to dealers during indiscriminate auctions was $9,742 in October, down 1.4(PERCENT) from a year ago.
The storm’s extinction “is going to keep prices from softening as most as they differently would have,” Kontos says.
No matter how most prices are lifted by Sandy, during slightest a impact will be temporary, says Tom Webb, arch economist for Manheim Consulting.
And a car impact isn’t as bad as from Hurricane Katrina, that flooded New Orleans and a Gulf Coast in 2005.
At Paragon Honda, Benstock says many buyers are regulating their word checks as down payments on new vehicles, instead of shopping used. “A lot are anticipating they can get into a new car for less” than they expected, he says.
But there are fewer new models on hand.
For instance, Toyota says it mislaid adult to 4,000 new vehicles available shipments to dealers.
Ford says it mislaid 800 new vehicles in inventory.