An
unexpected, but certainly not surprising, outcome following the aftermath of
Hurricane Sandy is the storm’s potential effect on used car inventory.
With
a widespread reach that encompassed a majority of the northeastern part of the
nation, the hurricane spread destruction on just about everything that stood in
its way – tossing cars and trucks as easily as a toddler does a Tonka Truck.
And with used car demand already on the rise over recent months, early industry
estimates indicate that this level of storm damage could result in the
depletion of dealership inventories, as car buyers scramble to replace their
damaged vehicles.
In
an interview with Auto Remarketing,
Ricky Beggs, senior analyst at Black
Book, was cited as saying, “There is going to be a quick influx of demand
for additional used cars, especially all the way up the East Coast, and will
reach up to New England and down South.” Adding, “People are going to need to
replace damaged vehicles.”
Beggs
also predicted that as local dealership inventory becomes depleted, you will
“see more activity online.” And in just a few hours following the storm, Beggs
predictions already seem to becoming a reality. In fact, early reports from the
prominent online used car search engine, UsedCars.com, indicate an upsurge in traffic.
“Within
the last 24 hours, we’ve experienced an incredible spike in the number of shoppers
visiting us online,” the website reports. “And maybe not surprisingly, the
pages experiencing the biggest spikes are those geographically focused on the
Northeast. Our New York City Used Car Page, for example, is experiencing some record numbers.”
While
a lot of this is still speculation, and it may be several months until we
really understand the level of effect the hurricane had on the industry, it may
be wise for car buyers to prepare for slightly higher used car prices. Car
dealerships across the country are going to be fighting to replenish their
inventory, leading to fewer options for the car buyer and possibly higher
sticker prices.
