Sandy expected to drive up used-car prices
Some unscrupulous dealers may try to foist storm-damaged vehicles onto unsuspecting buyers.
Wind and water whipping through the streets and parking lots of East Coast states last month have left drivers in need of replacement vehicles and dealers with a dearth of cars to sell. Experts expect used-car prices to rise in the coming weeks as a result.
If past is prologue, vehicles with a vintage of eight years or less could sell for up to 1.5 percent more, according to a prediction by the National Automobile Dealers Association. This estimate is gauged against what drivers in the New Orleans area saw in the wake of Hurricane Katrina.
NADA’s percentages would translate to an average of $50 to $175 more for used-car buyers. It could be a conservative estimate, according to other industry experts. Edmunds predicts a $700 to $1,000 increase in used-car prices in the short term.
Particularly vulnerable to higher sticker prices are automobiles typically used for work purposes, such as pickup trucks. The urgency of replacing those vehicles will likely drive up prices more substantially.
Another potential headache for car buyers across the country is the possibility of damaged cars surreptitiously infiltrating used-car inventories. Buyers could end up driving away in vehicles that seem to be in good condition but whose engines and interiors were doused with saltwater.
Some unscrupulous car dealers tried to pass off storm-ravaged cars after Katrina in 2005 and Hurricane Floyd in 2000, saddling drivers with vehicles that fell apart soon after purchase.
To avoid such scams, consumers should look out for condensation on a prospective vehicle’s instrument panel, water lines in the engine compartment or trunk, and rusted bolts.
The fed's program, cash for clunkers, already did that. Maybe Sandy will have an impact, but it will for sure put some damage vehicles on the market--buyer beware.
Wow! Kick the people in the gut where it hurts huh? Raise prices on people who are already hurting from being slammed by this storm. I would say that is just unhuman to do that to people who are already suffering. Usery and gouging the community, I would not buy any used cars from anyon in that town. I would go to another county or state.
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