DETROIT (WXYZ) - Hurricane Harvey caused mass damage in Texas, and Hurricane Irma appears ready for a collision course with Florida.
While Michigan is far from the damage area, the recent uptick in gas prices by roughly 15-percent shows how natural disasters far away can have surprising effects on our economy. Now, there are questions about what else could see increases in prices in the coming months.
Following past hurricanes the used-vehicle value has spiked. That can be good for those looking to trade in a vehicle, but a pain for those who could be searching for vehicles to purchase in the coming months.
The early numbers indicate that as many as half-a-million vehicles were damaged during Hurricane Harvey in the Houston-area. That will create a spike in demand that could send used-car prices higher.
“It’s supply and demand,” the chairman of Houston’s Automobile Dealers Association told CNBC on the program “Power Lunch.”
“Obviously there's going to be a tremendous demand for vehicles. I think that you're going to see some price pressure on used cars,” he said.