Hurricane Sandy to raise prices on used cars

According to the Detroit Free Press, the destruction of some 250,000 vehicles has led to a shortage that could affect late-model used-vehicle prices nationwide. The National Auto Dealers Association estimates that prices could increase 0.5% to 1.5%. That may not seem like much ($50-$175 per vehicle), but Edmunds.com suggests that in the short term, prices could jump $700 to $1,000.

So how could a dealer in Iowa be affected by a reduction in supply in New Jersey? Many used dealers work with the wholesale auction houses, where cars may travel many miles to meet demand. That means the absence of a quarter-million vehicles effects everyone.

News Source: The Detroit Free Press

Image Credit: Patrick McFall/Flickr - CC BY-SA 2.0

Category: Car Buying, Honda, Earnings/Financials

Tags: caterpillar, generators, honda, hurricane sandy, iowa, new jersey, sandy