Approximately 500,000 cars are expected to be scrapped due to damage caused by Hurricane Harvey.
Speaking to CNBC, chief economist for Cox Automotive, Jonathan Smoke said approximately double the number of vehicles scrapped after Hurricane Sandy will be sent to the scrapyard following the disastrous effects of Hurricane Harvey.
“This is worse than Hurricane Sandy. Sandy was bad, but the flooding with Hurricane Harvey could impact far more vehicles,” Smoke said.
Compared to the New York metropolitan area, there are a higher number of vehicles per household in Houston and surrounding areas, meaning more were parked on streets and felt the full force of the category 4 storm.
It is thought that some of the flood damaged vehicles won’t be scrapped and instead be repaired and resold.
“It’s going to happen, that’s inevitable,” said Frank Scafidi with the National Insurance Crime Bureau. “Look at all those vehicles floating around. There are people who will try to take advantage of the situation.”