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Used Car Prices on the Rise

November 8, 2012 - Across the Eastern United States, as far south as Texas, used car prices are dramatically inflated. According to the used car site Edmunds.com, car prices will jump about $750 to $1000 over the next couple of weeks due to Hurricane Sandy. Over 200,000 cars have been totaled due to the storm, and that means those cars are going to have to be replaced. Americans will be scrambling over the next couple of weeks to buy used cars so that they can get back on the road. This increased demand is causing the temporary price spike.

Areas with a high supply of used cars, like Texas, Florida, and Ohio, will attempt to cash in on the short-lived demand increase by jacking up their prices. The price jump will not affect only those who are looking to replace their cars—it is going to affect the used car market across the country. Now that consumers can purchase cars through online sites, the price spike will not be localized. That is why most consumers will be looking to the Texas, Florida, and Ohio markets to purchase their cars.

The market for quality used cars in the United States is already pretty sparse. As 200,000 or so Americans seek to replace their car, it will dramatically affect the market for everyone. The price jump is expected to be pretty dramatic at first, and will slowly decline over the next few months. Economists predict that prices will still be inflated by about $150 all the way into December.

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