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I also heard from the news that the demand for cars have gone up (so dealers are hiking up the price). It sucks but what can you do, maybe go out of state to buy? I am glad that there were no damages to my cars so I don't have to buy one.
It's simple. Supply and demand dictates that as demand increases, the price goes up. It has nothing to do with the actual cost of an item increasing. It's a matter of someone arbitrarily raising the price, and others paying it. S&D is a psychological concept, not an economic one.
When oil supply is lowered, gas prices rise. Does the gas cost any more to bring to market? No, it doesn't. Did the new cars in question in this thread cost the dealers any more money due to Sandy? No. Did the value of used cars have an actual reason to spike due to Sandy? No. But people have decided that their prices should rise, so they have. If no one buys at the inflated prices, they will eventually go down, further illustrating that the price increase was artificial.
You said it yourself in this statement:
"demand for cars have gone up (so dealers are hiking up the price)."
Supply went down due to all the cars getting destroyed. Demand went up because every one needs a car now. Prices will be raised by dealers as a result.
I corrected your statement to reflect what actually happens.
This is just another reason NOT to buy american cars.. Its just another bailout that the buyers will pay. They need to worry more about learning to build cars that are dependable and last a long time than ways to charge people more.
This is just another reason NOT to buy american cars.. Its just another bailout that the buyers will pay. They need to worry more about learning to build cars that are dependable and last a long time than ways to charge people more.
Yes because foreign cars float, and not a single one of suffered any damage as a result of the storm and it's not the manufacture charging more. It's people and dealers
Auto prices and gasoline prices to increase because of hurricane Sandy and the loss of over 250,000 vehicles.
I'm not sure where your getting this 250k car figure from, Car insurance companies say they received 31,000 insurance claims due to hurricane Sandy. Claims of 250,000 to 600,000 damaged vehicles is greatly exaggerated. This wasn't a Katrina level event. Most people evacuated ahead of the storm, so there are probably more houses damaged then cars.
Quote:
Originally Posted by Me007gold
... now a large portion of the population needs to buy new cars...
I think your greatly over estimating the number of people that have been affected by the storm. Mainly barrier island have been greatly affected, and the number of people that live on the barrier islands drops significantly after labor day. While it's true thousand of people have lost there homes, I'd say a 1/3 of then were 2nd vacation homes. There are 10's of millions of people living along the eastern coast, but those within 1 mile of the of the ocean is significantly less.
My husband runs a dealership outside of ATL. He is not buying any used cars now because of the sudden increase in cost. There are 3 large auctions 30 minutes or less from the ATL airport. He says the guys from up north have flown in bought everything and then fly home.
I'm not sure where your getting this 250k car figure from, Car insurance companies say they received 31,000 insurance claims due to hurricane Sandy. Claims of 250,000 to 600,000 damaged vehicles is greatly exaggerated.
Can't say one or the other but if insurance companies received 31,000 claims, i don't think that means 31,000 cars were destroyed. Some ppl have only liability coverage at which pt there would be no claim... no?
Can't say one or the other but if insurance companies received 31,000 claims, i don't think that means 31,000 cars were destroyed. Some ppl have only liability coverage at which pt there would be no claim... no?
If you only have liability coverage why would you call your insurance to make a comprehensive claim? No coverage; no claim.
Some ppl have only liability coverage at which pt there would be no claim... no?
Good point, but I still say 250k cars is greatly overstated. I'd be surprised if the numbers reach even 100k.
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and it's not the manufacture charging more. It's people and dealers
