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A Silver Lining From a Dark Cloud: Damage From Hurricane Sandy Could Help Economy and Auto Industry, Says Edmunds.com

Once life starts to return to normal for those affected by Hurricane Sandy, the auto industry could see an extra bump from those who delayed purchases or need to replace vehicles, reports Edmunds.com, the premier resource for automotive information.

“In Hurricane Katrina, which affected a much less populated area than New York/New Jersey, there were about a half million damaged vehicles,” says Edmunds.com Chief Economist Lacey Plache. “Sandy’s impact may well be higher, but even if 100,000 damaged vehicles are replaced by the end of the year it could boost auto sales three to four percent for the quarter, and that has a positive effect on the economy overall.”

The expected jump in demand will add more sales volume to a part of the country that is particularly important to the industry. Edmunds.com estimates that 20 percent of all new car sales in the U.S. come from the Mid-Atlantic and Northeast region that was affected by the storm.

Hurricane victims who are forced back into the market should find good conditions for buying a new car. The most recent statistics show that the average new car purchase was financed at a 4.1% APR in September, which was tied for the second-lowest monthly average since Edmunds.com started keeping records in 2002. Some automakers, such as GM and Nissan, have announced incentive programs specifically for storm victims.

The storm-induced bump in the new car market is just one of many factors that Edmunds.com expects to drive a strong finish to 2012. Increased lease terminations, growing consumer confidence, and a recovering housing market are all contributing to a positive outlook for fourth quarter car sales. Dr. Plache details all of these factors – including the Hurricane Sandy effect – at http://www.edmunds.com/industry-center/commentary/a-strong-finish-to-2012-auto-sales-is-becoming-easier-to-believe-in.html.

Those in the market for a used car may want to hold off on their purchases if they can afford to do so. Edmunds.com projects that used car sales will climb $700 to $1,000 in the short term due to storm-damaged dealer inventories and brief interruptions in the supply chain. Prospective used car buyers are urged to understand the basics of used car pricing and to make sure they know to look out for flood-damaged cars.

About Edmunds.com, Inc.

At Edmunds.com, we’re committed to helping people find the car that meets their every need. Almost 18 million visitors use our research, shopping and buying tools every month to make an easy and informed decision on their next new or used car. Whether you’re at the dealership or on the go, we’re always by your side with our five-star Edmunds.com iPhone and iPad apps and our Edmunds.com Android App. Our comprehensive car reviews, shopping tips, photos, videos and feature stories offer a friendly and authentic approach to the automotive world. We’re based in Santa Monica, Calif., but you can connect with us from anywhere by following @Edmunds on Twitter or by becoming a fan of Edmunds.com on Facebook.

About Business Wire
Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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