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How Will Hurricane Sandy Affect the Market for Luxury Cars?

Luxury cars are a market that is typically not one that many people think of as being affected by natural disasters, but many automakers such as Lexus, Acura, and BMW are carefully watching their sales figures after Hurricane Sandy. A natural disaster makes it next to impossible for many dealerships to open for business, cutting into sales. Even after they open, most people in areas affected by the storm are not making shopping for a new luxury car their first priority.

Within the first month after a large natural disaster, most people will be concerned with home and business repairs. Because many of them may need to qualify for loans for these repairs or use their own capital to pay for them, purchasing a luxury car will have to be put off for a while.

While many mid-range auto dealers will see sales increase within a month or so after a hurricane, as so many people need to replace flood-damaged vehicles, it is much more common for people to put off replacing a luxury car. Consumers who used a luxury car as their primary mode of transportation are more apt to replace it with a mid-range vehicle due to concerns with insurance and leaving enough personal capital to make up for losses from the storm.

After several months, however, it is believed by many industry analysts who have reviewed sales patterns from other natural disasters, that the luxury car market will have a surge in sales. Consumers of luxury cars will usually need a few months to make sure that their financial situation is stable, then they will want to purchase a luxury car again. In addition, the market will need to service the pen-up demand in the former disaster area, as many first-time buyer decide that they can go ahead with their planned purchase of a high-end car.