Used Car Online Sales Up Following Hurricane Sandy

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.