As many in the industry predicted, vehicle damage caused by Hurricane Sandy is pushing wholesale prices up.

According to NADA Used Car Guide, wholesale prices over the first three weeks of November were “noticeably stronger” than what is normally seen for the period.

Explaining this trend in more detail, NADA UCG officials said, “The strength in rental fleet-oriented segments — particularly midsize vans where later-model year prices increased by $450 over the first two weeks of the month relative to the end of October — as well as luxury car prices indicates that rental fleet companies and dealers have been actively addressing inventory issues resulting from Sandy's devastation.”

That said, the organization does not expect the trend to continue.

Based on recent trends and considering the prevailing relationship between used-vehicle supply and demand along with the disruption caused by Sandy, NADA expects used prices to remain essentially flat  through the last week of November instead of progressively softening as is typically the case, officials explained.

NADA UCG predicts wholesale prices — at an average of $13,925 — for the current week to dip by a slight 0.5 percent or $75 from the average of the past two weeks which will keep them essentially unchanged from October’s levels.

Dipping a little lower than the average, prices for midsize and large utilities and large pickups are expected to slip by an average of 0.6 percent, while luxury utility prices are expect to remain unchanged.

Prices for remaining segments are expected to increase mildly compared to the prior two-week average, with increases ranging from a low of $50 for compact cars and midsize vans, to a high of $100 for luxury cars. 

Four- and two-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles  up to five years of age for a specified period of time.  Prices are then adjusted for changes in mileage and mix.

Current week prices are based on NADA's proprietary used-vehicle value model which includes assumptions for new-vehicle prices, used-vehicle supply, gasoline prices and other economic factors.