Given what may be a high number of flood damaged cars in FLA, would this affect the used car market at least regionally?
Will Hurricane Ian Move the Needle in the Used Car Market?
- Thread starter Egg_Head
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I think used car pricing is going to keep rising. Along with watching out for flooded cars being sold.
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Unfortunately it means we will all have to keep an eye out for Flood Damaged used vehicles in our markets all over the country over the next year... It seems like it happens after every big flood event and there isn't much the government/insurance companies can do about it..
I don't understand this answer?
My concern is less on pricing, and more on the desire by the unscrupulous to repair and keep damaged vehicles on the road... driven mainly due to the pricing.
People who don't have their own ability to spot vehicles with issues, are going to have to rely on those who do.... more than ever.
When I bought the '18 Sierra, I spent a good half hour looking it over. I had coveralls and a creeper. Then I took it out alone for a one hour, 40 mile test drive. I warned the salesman. I don't think he was thrilled, but he took it like a champ and got the sale.
People who don't have their own ability to spot vehicles with issues, are going to have to rely on those who do.... more than ever.
When I bought the '18 Sierra, I spent a good half hour looking it over. I had coveralls and a creeper. Then I took it out alone for a one hour, 40 mile test drive. I warned the salesman. I don't think he was thrilled, but he took it like a champ and got the sale.
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Used cars will probably go up, and bring flood damaged cars to other states to be sold to not so savvy car buyers. History repeats itself.
Vehicles that are registered in flood zones are automatically marked on Carfax histories as having been at risk for flood issues.
However the biggest issue will not be immediately evident until months and years after the event. A lot of folks who may have experienced flood damage, but only have liability insurance, will struggle to get their vehicles repaired. Most will likely have cascading issues, such as water intrusion issues or electrical issues that are not properly repaired. That is usually where the biggest issues take place.
Insurance companies are automatically required to label vehicles with flood damage 'junk'.
New car dealers will absolutely avoid taking in these trades because selling them at a wholesale auction can get them banned. The auctions also have policies that stretch the arbitration periods to six months or longer for flood damage, water intrusion, and electrical issues related to water exposure.
Long story short, there are going to be a lot of totalled vehicles. Those with liability who have water damage may or may not be able to repair those issues depending on the severity. The rest will be handled through the claims process.
However the biggest issue will not be immediately evident until months and years after the event. A lot of folks who may have experienced flood damage, but only have liability insurance, will struggle to get their vehicles repaired. Most will likely have cascading issues, such as water intrusion issues or electrical issues that are not properly repaired. That is usually where the biggest issues take place.
Insurance companies are automatically required to label vehicles with flood damage 'junk'.
New car dealers will absolutely avoid taking in these trades because selling them at a wholesale auction can get them banned. The auctions also have policies that stretch the arbitration periods to six months or longer for flood damage, water intrusion, and electrical issues related to water exposure.
Long story short, there are going to be a lot of totalled vehicles. Those with liability who have water damage may or may not be able to repair those issues depending on the severity. The rest will be handled through the claims process.
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If there are a lot of totaled vehicles, then there will be a need for new or used cars. Would Ian cause a bump in used car prices possibly in the SE?
It should be interesting to see what happens. I worry about flooded cars though.
I'd wait a while, maybe six months or so before buying used. By that time flood damaged cars will be known or scrapped.
You can track the wholesale price of used vehicles through Manheim at the link below. They have algorithm that adjusts for mileage, age etc. Used cars prices peaked last Christmas and are down about 10% since (wholesale). September numbers are out - its about the same as september last year - so it peaked and come back down.
I doubt the number of destroyed cars in Florida are enough to move the needle much overall or for very long.
https://publish.manheim.com/en/services/consulting/used-vehicle-value-index.html
I doubt the number of destroyed cars in Florida are enough to move the needle much overall or for very long.
https://publish.manheim.com/en/services/consulting/used-vehicle-value-index.html
Flood damaged cars are almost 100% shipped overseas to 3rd world countries.
Their sales prices are almost always rediculously high
Their sales prices are almost always rediculously high
I'd love to see the route a parade of flood damaged cars takes to get abroad. And yes, boats are involved. I've seen docks filled with used cars being loaded in Brooklyn.
The used car inventory has been piling up. Unless it’s the latest fashion statement you see many sitting for 100+ days. Id be more worried about building material prices going back up.
Owen Lucas
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Make sure to remove your work logos before sending your work truck to the total loss yard or trading it in. Your ride could end up halfway across the world with a machine gun on it....
This plumber started getting threats from this video footage and sued Auto Nation for $1MM since they didn't remove the logos before auction. He settled for an undisclosed amount after 3 years later in 2017.
https://nypost.com/2014/12/17/outrage-after-islamic-militants-seen-using-texas-plumbers-truck/
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There are roughly 4 million vehicles up for sale at any given time but about 40 million sales a year
It is not uncommon like the event in Florida to create numbers around the low millions of flood cars if the storm hits the wrong area(s)
If we figure 1m large flood vehicles it’s affect will depend on how the cars are released into the market.
One could assume bad things near term as everyone instantly wants a new car but based on past floods the salvage auction many times is 6+ months away, a few flood cars I found going through auction a tad past 2 years after the flood.
My only thought is that the insurance companies literally don’t care about the damage from sitting and move glacially.
One should always be on the lookout for flooded cars. If a junker is worth $400 someone can sit on it for years before cobbling it back together and dumping it for 10x that.
In this environment people are really scrounging for reasonably priced cars, they shouldn't let their guards down. It just sucks.
In this environment people are really scrounging for reasonably priced cars, they shouldn't let their guards down. It just sucks.
