As recovery efforts following Hurricane Sandy continue along the East Coast, damage costs from the storm are rapidly rising. Many businesses have taken a hit from the ensuing power outages, flooding, and other devastating factors from Sandy, and the auto industry is no different.
CNW Research found that when the hurricane hit in the final days of October, it cost roughly a quarter million used-car sales, or an estimated $2 billion in “probable value.”
But there’s good news: Despite the Sandy speed bump, October sales grew close to 5% year-over-year. Still, with more than 3.04 million sales from franchise and independent dealers and private-party transactions — up from October 2011’s 2.9 million units — last month’s final number was less than CNW’s mid-month prediction that 3.27 million used units would be sold.
Franchise dealers lost an estimated 83,000 units, or just under 7% of probable sales in October, CNW concluded in its research, while independent dealers lost out on selling 64,100 cars, or slightly more than 5%.
According to the firm, there were 1,181,742 units moved by franchise dealers, while independent dealers sold 1,147,692 units. There were 712,915 private-party sales.
Though there was that year-over-year gain, CNW President Art Spinella aid those sales were “not enough to offset the lower average used price when it came to the value of the cars and trucks sold.” The total value of used-car transactions dropped to $27.61 billion last month from October 2011’s $28.2 billion.
“The total industry lost about 7.3% of probable value, or $2 billion, because of the storm,” Spinella said.