Hurricane Harvey blasted the Texas coast as a category four storm but quickly dissipated to become a tropical storm. The trouble is the storm has lingered in Texas, and in the process, dumped trillions of gallons of water over America’s fourth-largest city: Houston.
While we’re far from knowing the extent of damage caused by Hurricane Harvey, a new figure surrounding vehicle losses is eye-popping. According to a new CNBC report, Hurricane Harvey is expected to leave 500,000 vehicles totaled out in its wake. The majority of the scrapped cars will meet their untimely end thanks to immense flooding that has plagued southern Texas. For every photo and video showing a car submerged underwater, it’s another insurance write-off and another vehicle loss.
For some reference, 250,000 vehicles were scrapped after Hurricane Katrina.
In the short term, the industry is bracing for a sales slump as purchasing cars becomes the last thing on most Texans’ minds. However, a surge in new and used car sales is forecasted as the storm moves out of Texas and proper cleanup and rebuilding can take place.