We have already heard the commercials all over that radio with car dealerships telling us they are paying top dollar for your trade.

We have heard it before, however, if you've recently traded in a vehicle you'll know how true it actually is. In fact, every single car dealership in town is ready to give you more than your car is worth right now. It's insanity, why are car dealerships doing this?

I have several friends in the car business who claim it's the wild west right now.

COVID-19 is the biggest culprit, we all heard about factories shutting down or trimming down production worldwide, and then we heard about the chip shortage none of us understand. Which led to several vehicles waiting on a certain chip before they can be sold.

It's safe to say that the car industry is strained. What happens when you throw in a couple of tropical storms and a big hurricane like Hurricane Ida?

Your car demand shoots up dramatically.

In case you haven't seen pictures of the damage caused by Hurricane Ida let me refresh your memory.

Remnants Of Hurricane Ida Move Through Northeast Causing Widespread Flooding
Spencer Platt, Getty Images
Remnants Of Hurricane Ida Move Through Northeast Causing Widespread Flooding
Spencer Platt, Getty Images

See all those cars underwater? Now imagine the countless car dealerships in that area. Yikes. It's safe to say that the demand for vehicles will soar. How will car manufacturers keep up?

Car manufacturers won't be able to keep up.

Hurricane Nicholas hitting the Texas coast adds yet another problem. Think of how many more vehicles will be damaged and how many more people will have a need for new vehicles.

According to CNN, "Major storms can affect car prices nationwide for many months because so many cars are lost simultaneously.". Remember when Hurricane Harvey swept through Houston? The hurricane caused used car wholesale prices to shoot up 3% nationwide. Those prices stayed high for several months. CNN claims that "experts fear it will be worse this time, even if fewer cars are affected.". 

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