Hurricane Sandy’s Long-Term Effects: Used Car Prices to Increase

by Joe Ferguson on November 21, 2012

With the recession still looming and the devastating arrival of Hurricane Sandy on the East Coast, used car prices could potentially shoot through the roof. Even if you don’t live in the areas affected by Sandy’s wake, the cars that were damaged in the storm could be working their way to an auto dealership near you.

This directly affects those on the coast who had cars that were destroyed in the storm. Naturally, they need to replace those cars and it could end up costing them a pretty penny. Not only houses were damaged, but a number of auto manufacturers and dealerships lost millions of dollars in inventory. With prices getting higher, it will be important to have trustworthy auto financing.

The fear of some consumers is that some unsavory car dealers will attempt to fix up then sell these flood damaged cars as “refurbished”. Doing this without taking into account the long- term effects sea water and potentially toxic chemicals, both on the car and the people riding inside could be dangerous for your wallet and your health.

It will be imperative when purchasing a new or used car from a dealership that you are vigilantly looking out for any flood damage, like an unreliable engine or silt residue left on the floorboards or in the ceiling. Sediment could get stuck into any part of the car and cause corrosion, deterioration, or premature rusting. The car may seem fine at the time of purchase but down the road could develop some serious problems.

Say you want to delve even deeper into your vehicle’s past, to avoid being sold a potential monetary black hole. The National Motor Vehicle Title Information System contains reports, required by law for all dealers, on every car sold in all 50 states. With the National Motor Vehicle Title Information System you can plug your vehicle’s identification number (or VIN) in to see if it has a history of ever being totaled out for flood damage or other reasons.

It would appear that the price of cars, at least for now, is going to continue to rise. Make sure you have the right tools to combat a potentially sour deal. If you do your homework and check the facts you can spend your money wisely and not end up regretting being unprepared. Having access to a reputable auto financing service is just one of the trick you can keep up your sleeve to combat rising used car prices.

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