Used Car Prices Are Expected To Spike Thanks To Hurricane Sandy

Used car prices are expected to spike in the coming months thanks to the damage caused by Hurricane Sandy, according to the Los Angeles Times.

It’s estimated the storm laid waste to over 250,000 used cars in the Northeast last week. An exact figure is presently being tabulated. Car buyers in the market for a used automobile over the next few months can expect to pay more as a result.

NADA analyst Jonathan Banks believes that consumers should anticipate paying between $50 and $175 dollars more per vehicle. The number will depend on the make, model, year, and condition of the automobile in question.

“We have seen a trend for dealers, regardless of where they are located, buying inventory online and that means that geography is not as important as in past,” Banks explained. “It used to be that dealers would buy cars from a physical auction near their dealership.”

Other experts say prospective buyers can expect to shell out $700 to $1,000 more per vehicle on average. However, this increase in the price of user cars is only expected to last for a short period of time.

While dealerships will be hit hardest in the Northeast, other sellers are expected to feel the sting of Hurricane Sandy’s destruction. Since many dealers purchase inventory online from other states, these lots could be affected by the unexpected shortage of quality used cars as well.

The Christian Science Monitor explains that buyers should also be aware of the number of flood vehicles that are likely to pop up on the market in the next few months. If the price for the vehicle sounds too good to be a true, then customers should take this as a sign and get a thorough inspection before signing on the dotted line.

Do you think used car prices will increase significantly in the wake of Hurricane Sandy?