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National Automobile Dealers Association analyst Jonathan Banks discusses the state of claims over flood-damaged vehicles from Hurricane Sandy.
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-- -- The auto dealers trade association said this week that up to 250000.
Cars to be flood damaged or destroyed in super storm -- causing used car prices -- -- higher.
But -- insurance companies came out saying make those numbers are wrong.
Jonathan banks is an executive auto analyst with DNA DA the National Automobile Dealers Association.
Thanks for joining us and we appreciate you being a job -- so you're quoted in the original story about this that your group sister but 2000 cars maybe prices -- rise one point 5%.
Then the Associated Press can double -- follow up story -- defend him and we're we're not seeing very many claims and all maybe 30040000.
And you're quoted sand well we have not -- science behind what we said so Jonathan.
Are you in danger of becoming a used car -- cliche sir are you telling the truth but.
That essay yeah I saw that article as well an -- I really -- to shake my head because.
Their assumptions simply are correct.
And ADA's estimate was between 350000.
Cars damaged and what you pay -- -- on Jonathan based on -- LO.
What we look at is as we just heard Sandy's damage totals are expected to be around fifty billion.
We looked at Katrina which is about a 150 billion damages recorded.
And out of the VA out of those damages about 600000 cars -- flood damage in Katrina digital program -- a half.
We're we're just looking at that so it's about 13 but in addition to that remember the areas affected by sandy.
Have a higher population density number one.
A higher vehicle population density so there's about nine million -- nine million vehicles registered in areas affected by sandy much higher than Katrina.
And there's a much higher population of dealerships in the areas affected by sandy.
Compared to Katrina.
So we looked at those.
Those figures and came up with what we thought was a really good estimate between.
100 to 250000.
What -- did you get that claim of prices going up one point 5% because if the people in the area hit by the storm are spending money on fixing storm damage they don't have as much money to spend on their used car.
It yet very true what's happening right now and that's on a national level to.
The impact of prices in the areas might even be more than that.
What what's happened is we're in a very unique supply and demand environment for used vehicles.
In that supply is very tight.
And demand has been very strong because consumers who need to replace their vehicles which by the way -- average age of vehicles is at a record high.
They're coming back to the market in economic conditions that aren't that great so they're looking for -- -- going to the used cars.
So supply and demand have been -- used car prices that historical highs this year right and high -- the numbers every now -- -- -- get from -- -- a -- never hurts my friend thank you very much for being with us today Jonathan banks.
