Hurricane Harvey Floods Half A Million Vehicles
Hurricane Harvey, a Category 4 storm, slammed Texas over the weekend of August 25 - 27. It has made landfall at least three times since, once as a hurricane and twice as a tropical storm. The storm dumped 47-inches of rain in some areas causing catastrophic flooding and billions of dollars in damage from Houston to the coast. It displaced more than 30,000 people and more than 30 have died.
National news outlets are reporting that when the storm is said and done, more 500,000 vehicles will have flood damage. A Cox Automotive economist is saying that’s worse than Hurricane Sandy, which saw about 250,000 vehicles flooded. The reasoning is there are more vehicle owners in Houston, the Nation’s fourth-largest city.
Companies are predicting used car prices will soar after Texas’ residents get back on their feet and need to buy replacement vehicles. This also means those flooded vehicles will head eventually head to salvage and scrap yards; which could raise scrap prices.
In the short term, analysts are predicting a rise in gas prices due to Harvey’s disruption of oil drilling in the Gulf; rigs and platforms were shut down in preparation for the storm.