RT TFTCS "RT BloombergTV "Climate change aside, Harvey could reshape how and where Americans build their homes … pic.twitter.com/7H9WvsrY7L""
— CNBCTraders (@CNBCTradersFan) August 31, 2017
While reports have emerged indicating how the freight and petroleum industries will be impacted by Hurricane Harvey, an early assessment from Cox Automotive reveals that the automotive industry will be faced with replacing an estimated 500,000 trucks and cars expected to be flooded by the record storm.
There are also concerns that flooded vehicles will be repaired and sold to buyers who will have no idea of the car’s storm history, an illegal practice, but one that’s tough to stop, according to the National Crime Insurance Bureau.
Mannheim Auto Auctions told cnbc.com that with used vehicle values already nearing a record high, there’s a concern that the upcoming demand brought on by Hurricane Harvey will cause prices to climb even higher.
Cox Automotive expects that the storm, the largest rain event in U.S. history, will send half a million vehicles to the scrap heap, which is about twice the amount impacted by Hurricane Sandy in 2012.