What Will Hurricane Harvey do to the Used Car Market?
The floodwaters from Hurricane (now Tropical Storm) Harvey are still filling the streets of cities like Houston and Galveston, yet already auto industry analysts are taking a look at what impact this event will have on the used car market. The short answer is that you need to be prepared for the price of used cars to go up.
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It is conservatively estimated that the hurricane has flooded 90,000 cars, with some sources bringing that number up to as many as one million. In the case of Houston, the city is a sprawling metropolis with many residents relying on their vehicles to get from place to place, instead of public transportation. Several cars were flooded on roadways as drivers tried to escape the storm’s rising waters and cars parked by those sheltering in place have also been hit. When the floodwaters finally recede back into the riverbeds, all of these residents will probably have to find new vehicles.
Drivers with flood insurance on their vehicles might be able to afford to buy new vehicles, but others will be picking over what is left of Houston’s used car inventory. Reports are coming through industry sources to suggest that Houston dealers and others in Texas are currently trying to source reliable used cars, both to replace their lost inventory and to prepare for a rush. If it is true that a million cars need to be replaced, there will be a considerable strain on the market and the cost of used cars here and in the rest of the United States will rise sharply. We will continue to monitor the situation as there is more to report.
The News Wheel team is saddened by the toll Hurricane Harvey is taking on the Gulf Coast of the United States. If you have money to spare, please consider donating it to the American Red Cross or other disaster organizations to aid in the area’s recovery.
News Source: Mashable