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Friday, 12 October 2018 18:31

Cox Automotive Estimates Vehicle Loss From Hurricane Michael

Written by Jonathan Smoke, Cox Automotive

 

Hurricane Michael hit the Florida Panhandle Oct. 10 as a strong Category 4 hurricane. Reports from the National Hurricane Center indicate maximum sustained winds of 145 mph---a major weather event.

 

Looking at the area to be most affected by the storm, the Cox Automotive Industry Insights team estimated that vehicle loss rates will be lower than---perhaps half---the numbers lost in Hurricane Florence in September. Hurricane Michael is directly hitting a less densely populated section of Florida, and the fast- moving nature of the storm will likely mean less-severe flooding inland, away from the storm surge. Property damage will likely be significant due to flooding at the coast, but evacuations will help reduce the number of vehicles lost.

 

Considering vehicle registrations, population and the nature of the event, vehicle losses will likely be in the range of 10,000 to 20,000. While significant, that volume should have minimal impact on the overall U.S. auto industry.

 

As both new- and used-vehicle inventories are relatively low, Cox Automotive is expecting temporary upward pricing pressure in the areas most impacted by the storm, particularly on the used-vehicle side. Any vehicle loss is a tragedy and hardship for someone. Fortunately, in this case at least, loss volume will be relatively low.

 

We thank Cox Automotive for reprint permission.

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