Hurricane Sandy Leading to Flooded Market of Flooded Cars

Hurricane Sandy crashed into the Eastern Seaboard of the United States at the end of October but the effects are still being felt. In addition to the massive loss of life and destruction of hundreds of homes, the insurance industry reports that it has received 230,000 claims for damaged or destroyed vehicles. 

A single insurance auction company had had to rent a private airport just to store the 15,000 cars that it has to auction. The cars will go to recyclers, salvage yards and possibly to some unscrupulous used car dealers. 

Legally, all of the cars involved in the flooding must have their titles stamped "flood" to alert potential buyers that the car has been damaged, but there are ways to circumvent these rules, and some buyers will likely get cheated. The saltwater from the floods can cause damage to computer components, body panels and cause interior mold. 

The storm is affecting used car prices around the US as well. Thousands of people in a geographically small corner of the US are looking for cars to replace the ones damaged in the store. That has increased demand and therefore prices. 

Source: Weather