Hurricane increases used car demand, prices
MCLEAN, VA — Buoyed by Hurricane Sandy, demand and prices for used cars and light-trucks climbed in November, according to a NADA press release.
The Dec. 18 release stated that a post-storm estimate showed an improvement of .5 to 1.5 percent. NADA predicts the boost in used-vehicle demand will result in higher prices in December as well.
“Prior to Sandy, we expected used-vehicle prices to drop by 2.1 percent in November. But the impact of the storm and the continuing tight supply of late-model vehicles plus strong demand slowed depreciation to 1 percent,” Jonathan Banks, executive automotive analyst with the NADA Used Car Guide, said in the release.
“Trade-in values for compact utilities, compact luxury utilities and compact and mid-size cars will be strong in December with values either essentially flat or in certain cases higher compared to last month,” Banks added.