Prices for used cars up to eight years old will increase 0.5 percent to 1.5 percent because of Hurricane Sandy, the National Automobile Dealers Association predicts.
"The loss of used-vehicle supply and the increase in replacement demand after Hurricane Sandy will have the greatest impact on used-vehicle prices in December," Jonathan Banks, executive automotive analyst with the NADA Used Car Guide, said in a press statement.
The used-vehicle markets in New York and New Jersey will feel the greatest impacts. Both rank in the top 15 states for overall vehicles in operation and new-vehicle dealerships. Used-vehicle prices in those states, particularly for import and luxury cars, likely will increase beyond the association's national expectations, Banks said. Prices for large pickup trucks will also jump toward the high end of the projected range because contractors and service professionals will have to replace vehicles, which already are in relatively short supply.
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The projected increase is less than the bump in prices experienced after Hurricane Katrina in 2005, when used-vehicle prices rose as much as 3 percent for four months after the storm's landfall, the association said. EQECAT Inc., a catastrophe analytics company, pegs insured losses from Sandy at $10 billion to $20 billion, less than half the insured losses from Katrina.