Hurricane Boost to Vehicle Sales May Last Until November
In the aftermath of Hurricanes Harvey and Irma, Kelley Blue Book analysts expect vehicle sales to increase in Texas and Florida, as residents purchase replacements for the ones destroyed in the storms.
The demand for replacement vehicles has already started, and experts say it will continue well into October, and possibly November, as insurance payouts are received.
New vehicle sales are expected to rise 1% year-over-year to a total of 1.44 million units in September of this year, resulting in an estimated 17.5 million SAAR. However, most consumers are likely to shop for pre-owned vehicles.
Some auto manufacturers are giving shoppers hurricane relief incentives of up to $1,000.
Kelley Blue Book estimates that new light-vehicle sales, including fleet, will reach near 1.5 million units, up 0.7% when compared with September 2016 and down 2.6% when compared with last month. Retail sales are expected to account for 85.8% of volume for this month, up 0.5% from this time last year.
Overall, analysts forecast calls for sales between 16.8 and 17.3 million units for 2017, a 1% to 4% decrease from 2016.