Do you sell used cars? Prepare for prices to go up!
The estimated 250,000 cars flooded by Superstorm Sandy on the East Coast will drive up used-car prices, even as far away as California.
The supply shortage comes on the heels of an already tightened used-car market in the wake of the recession, when new car sales dried up. Some experts say prices could rise $700 to $1,000 on the typical used car in the short term. Although those effects will be felt most acutely near the flood zone, the increasingly digital and national market for used cars will spread the price shocks widely.
The flood of Sandy-damaged cars further poses the risk that many will wind up in the hands of unscrupulous dealers peddling to unwitting consumers. The vehicles pose both financial and health risks.
Photo by drpavloff.
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