Why it will be hard to replace cars destroyed by Hurricane Ian
Final numbers won't be available for months, but one thing is certain: An overwhelming number of drivers in Hurricane Ian's path will be replacing a vehicle at a time when inventories are already tight.
"We're anticipating more than 300,000 destroyed vehicles from Hurricane Ian," says
Ian crashed ashore to flood, smash and carry away countless vehicles. While picking up other pieces of their lives, hurricane victims are left trying to find rental cars, filing auto insurance claims (if they had comprehensive coverage) and starting the search for replacement vehicles.
Friedlander says based on estimates, Ian could be the second-largest vehicle loss event on record in the
How will Ian's destruction affect the national car market?
The national car market has been in chaos for more than a year. Supplies of new and used vehicles have been limited, due to pandemic-driven supply-chain issues and semiconductor chip shortages. With car manufacturers unable to meet the demand for new vehicles, car buyers depleted used-car inventories. This shortage pushed car prices, as well as car payments, to record highs.
In September, it appeared that vehicle inventories were stabilizing.
Then came Ian.
Auto dealerships in
In an
Finding the elusive replacement vehicle
Photos of hurricane victims with their recently purchased cars are starting to appear across social media, and most also mention the difficulty of finding a vehicle and paying a high price. As more people settle insurance claims, demand will likely increase further.
Online car retailers are also preparing to meet potentially increased demand for vehicles in areas affected by Ian.
Online car-buying apps are another way to spread a wider net when searching for a replacement vehicle.
For those who want a new vehicle and don't mind waiting, ordering a built-to-order vehicle from the factory could be a solution. It may also be a way to avoid dealer markups.
Precautions to take when replacing a car after a natural disaster
If you're a car owner replacing a vehicle after a hurricane or other disaster, you should take several steps to protect yourself.
You're not covered for storm damage unless you carry comprehensive auto insurance, which compensates you for the value of your vehicle at the time of its loss, minus any deductible.
With car values skyrocketing in the past year, what your car is worth might surprise you. You can research the car's true market value using pricing guides like
Finally, beware of flooded vehicles that have found their way back into the market. Degen says unscrupulous sellers trying to unload formerly flooded vehicles is always a problem after disasters like Ian. While these cars should have flood or salvage titles, that isn't always the case.
Degen recommends getting an AutoCheck or Carfax vehicle history report, which usually shows any flood title issued. Again, be sure to consult pricing guides to check the car's fair purchase price. If a seller is asking much less, that should raise suspicions.
Getting a pre-purchase inspection by your chosen mechanic is another safeguard. Says Degen, "It might cost you a few hundred dollars, but it could save you a lot in the long run."
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