How Hurricane Sandy's Aftermath Will Affect The Auto Industry

The effects of Hurricane Sandy are expected to ripple across the auto industry. In the short term, the superstorm is expected to hurt October sales figures, asdealerships across the Eastern Seaboard missed several days of sales. But in the months ahead, analysts expect the storm to boost an already-burgeoning industry as Sandy’s victims replace damaged vehicles.

By Pete Bigelow
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The effects of Hurricane Sandy are expected to ripple across the auto industry.

In the short term, the superstorm is expected to hurt October sales figures, as dealerships across the Eastern Seaboard missed several days of sales. But in the months ahead, analysts expect the storm to boost an already-burgeoning industry as Sandy’s victims replace damaged vehicles.

“There was definitely a loss of sales over the last couple of days and this month, sales will be lower than the would have been otherwise,” said Tracy Handler, principal analyst for IHS Automotive. “Over the next 30 days, we’ll see some lower sales for a bit, but then we expect we’ll come back.”

The storm decimated a region that accounts for approximately 20 percent of all U.S. car sales. Early estimates say the halt in sales could cost automakers as many as 100,000 units in October figures, but delayed purchases could beef up November numbers instead.

The number of damaged or destroyed cars is hard to pinpoint only two days after Sandy hit. Ford spokesperson Erich Merkle said it was too early to assess Sandy’s impact on the company’s October numbers or forecast for the year. A spokesperson for insurance giant State Farm said that 900 auto-related claims had been filed by early Wednesday afternoon, but that’s only the beginning.

“We’re just ramping up,” she said.

When Hurricane Katrina hit the Gulf Coast in 2005, approximately 640,000 vehicles were lost. Hurricane Sandy, hitting a much more population-dense region, is expected to have a far more reaching effect.

New car sales were initially expected to rise approximately 12 percent in October, according to a TrueCar.com projection. The Seasonally Adjusted Annual Rate (SAAR) of sales was expected to top 14.9 million units this year, the highest industry sales figures since 2007.

While October’s projections may dwindle, the possibility of so many new car shoppers unexpectedly entering the market could push the SAAR above 15 million.

Luxury brands could potentially see the biggest temporary dips in their numbers – and potentially the biggest longer-term rewards. The New York, Philadelphia and Washington D.C. markets account for 25.4 percent of all Acura sales, 23.6 percent of Mercedes-Benz sales and 23.2 percent of BMW sales, according to an Edmunds analysis of Polk car registration data.

Popular car brands in each market could also see numbers affected. Honda accounts for 14.2 percent of all New York car registrations, Ford claims 14.3 percent of the Philadelphia market and Toyota holds 16.1 percent of the new-car market in the nation’s capital.

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Every year, J.D. Power releases its Vehicle Dependability Study, which measures how dependable a vehicle has been over the previous three years of ownership. It is a valuable study, some would say more important for your consideration than its better known Initial Quality Study, which measures quality issues and problems as reported by customers after just three months of ownership. We have chosen to show you vehicles that are at the top of their categories based on Power's 2012 VDS, as well as what we think their counterparts are. Power does not tell is which vehicles score at the bottom of the heap in their category, but we have applied our expertise and weighed that against Consumer Reports and IIHS safety ratings to offer the worst choices in the category. That's not to say that our picks are bad cars. In many cases, they are just less good than their rivals. It's important to remember that the VDS champ is a car the car that was sold three years ago. In some case, these models have been substantially upgraded, and will have to be scored again. But in our experience, models that score tops in VDS rarely fall very far from the top even after a redesign unless the automaker really messes up. We are showing you the picture and information links of the 2013 models of all vehicles. But it's also worth noting that the fact that these cars have been the most reliable over the last three years means that the 2008 versions make for excellent used car purchases.
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Every year, J.D. Power releases its Vehicle Dependability Study, which measures how dependable a vehicle has been over the previous three years of ownership. It is a valuable study, some would say more important for your consideration than its better known Initial Quality Study, which measures quality issues and problems as reported by customers after just three months of ownership.

We have chosen to show you vehicles that are at the top of their categories based on Power’s 2012 VDS, as well as what we think their counterparts are. Power does not tell is which vehicles score at the bottom of the heap in their category, but we have applied our expertise and weighed that against Consumer Reports and IIHS safety ratings to offer the worst choices in the category. That’s not to say that our picks are bad cars. In many cases, they are just less good than their rivals.

It’s important to remember that the VDS champ is a car the car that was sold three years ago. In some case, these models have been substantially upgraded, and will have to be scored again. But in our experience, models that score tops in VDS rarely fall very far from the top even after a redesign unless the automaker really messes up. We are showing you the picture and information links of the 2013 models of all vehicles. But it’s also worth noting that the fact that these cars have been the most reliable over the last three years means that the 2008 versions make for excellent used car purchases.

MSRP: $14,115 - $16,400 Invoice: $13,551 - $15,743 Fuel Economy: 30 mpg City, 38 mpg Highway The Toyota Yaris has been known as the most basic of basic transportation ever since it showed up on U.S. shores. It is the 2008 model that scores the top spot on J.D. Power's VDS tally, but the car you can buy today was much upgraded for the 2012 model year. Toyota has gone back to the drawing board for the 2012 model year, combating the dullness of the old Yaris with a combination of more expressive exterior styling and the promise of improved driving dynamics. It has even tuned the Yaris SE with a stiffer suspension and bigger tires as an olive branch of sorts to budget-minded enthusiasts. It has been upgraded all the way around the interior with better materials and more carefully done surfaces and controls. The SE model is equipped with a six-speaker sound system made more desirable with the addition of a USB input, auxiliary jack, Bluetooth streaming music and hands-free calling. The sound system is great for a vehicle that costs only $16,400. This new model should score even better, we think, than the old Yaris as owners will almost have to be happier with the overall package than they used to be. Research the Toyota Yaris Toyota Yaris Photos & Information Toyota Yaris Specs Toyota Yaris Local Dealer Price Quote
Best Sub-Compact Car: Toyota Yaris

MSRP: $14,115 – $16,400
Invoice: $13,551 – $15,743
Fuel Economy: 30 mpg City, 38 mpg Highway

The Toyota Yaris has been known as the most basic of basic transportation ever since it showed up on U.S. shores.

It is the 2008 model that scores the top spot on J.D. Power’s VDS tally, but the car you can buy today was much upgraded for the 2012 model year.

Toyota has gone back to the drawing board for the 2012 model year, combating the dullness of the old Yaris with a combination of more expressive exterior styling and the promise of improved driving dynamics. It has even tuned the Yaris SE with a stiffer suspension and bigger tires as an olive branch of sorts to budget-minded enthusiasts.

It has been upgraded all the way around the interior with better materials and more carefully done surfaces and controls. The SE model is equipped with a six-speaker sound system made more desirable with the addition of a USB input, auxiliary jack, Bluetooth streaming music and hands-free calling. The sound system is great for a vehicle that costs only $16,400.

This new model should score even better, we think, than the old Yaris as owners will almost have to be happier with the overall package than they used to be.

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MSRP: $12,490 - $17,890 Invoice: NA Fuel Economy: 34 mpg City, 38 mpg Highway The smart fortwo is the other end of the spectrum for us. Consumer Reports and AOL Autos editors rate it at the bottom of the scale for entry-level cars. For a car with only two seats and a bone jangling ride, it presents neither a good fuel economy story, nor a particularly good buying value. At more than $15,000, we'd rather buy a used anything-else than a new fortwo. Research the smart fortwo smart fortwo Photos & Information smart fortwo Specs smart fortwo Local Dealer Price Quote
Worst Sub-Compact Car: smart fortwo

MSRP: $12,490 – $17,890
Invoice: NA
Fuel Economy: 34 mpg City, 38 mpg Highway

The smart fortwo is the other end of the spectrum for us. Consumer Reports and AOL Autos editors rate it at the bottom of the scale for entry-level cars. For a car with only two seats and a bone jangling ride, it presents neither a good fuel economy story, nor a particularly good buying value. At more than $15,000, we’d rather buy a used anything-else than a new fortwo.

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MSRP: $24,000 - $29,805 Invoice: $22,560 - $27,744 Fuel Economy: 51 mpg City, 48 mpg Highway The Toyota Prius is the king of all hybrids in terms of sales, and it also scores the top spot in the entire compact car category, beating its own showroom-mate, the Corolla, as well as the Hyundai Elantra. Prius owners have rated the car extremely reliable over three years of ownership. And we have never had reasons to doubt that the car is reliable. We find the driving experience a bit bloodless, but people buy the Prius for fuel economy, which is an impressive 51 city/48 highway. Prius owners tend to really love the their car like people loved their Volkswagen Beetles. Research the Toyota Prius Toyota Prius Photos & Information Toyota Prius Specs Toyota Prius Local Dealer Price Quote
Best Compact Car – Toyota Prius

MSRP: $24,000 – $29,805
Invoice: $22,560 – $27,744
Fuel Economy: 51 mpg City, 48 mpg Highway

The Toyota Prius is the king of all hybrids in terms of sales, and it also scores the top spot in the entire compact car category, beating its own showroom-mate, the Corolla, as well as the Hyundai Elantra.

Prius owners have rated the car extremely reliable over three years of ownership. And we have never had reasons to doubt that the car is reliable. We find the driving experience a bit bloodless, but people buy the Prius for fuel economy, which is an impressive 51 city/48 highway. Prius owners tend to really love the their car like people loved their Volkswagen Beetles.

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MSRP: $15,845 - $19,349 Invoice: $15,212 - $18,575 Fuel Economy: 23 mpg City, 33 mpg Highway It's not that the Suzuki SX4 is a bad car. In fact, some of our editors have told tales of its competent all-wheel-drive system barreling through a foot of fresh snow on the streets of Michigan. But Suzuki scores terribly on quality and reliability and the dealer network is, well, challenged to provide good customer service. Research the Suzuki SX4 Suzuki SX4 Photos & Information Suzuki SX4 Specs Suzuki SX4 Local Dealer Price Quote
Worst Compact Car – Suzuki SX4

MSRP: $15,845 – $19,349
Invoice: $15,212 – $18,575
Fuel Economy: 23 mpg City, 33 mpg Highway

It’s not that the Suzuki SX4 is a bad car. In fact, some of our editors have told tales of its competent all-wheel-drive system barreling through a foot of fresh snow on the streets of Michigan.

But Suzuki scores terribly on quality and reliability and the dealer network is, well, challenged to provide good customer service.

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MSRP: $18,725 - $21,815 Invoice: $17,789 - $20,725 Fuel Economy: 23 mpg City, 31 mpg Highway Scion tC, a Toyota product sold at Toyota/Scion dealers, is a well-built, inexpensive sports coupe that sits atop Power's VDS tally in the"compact sporty" category where it doesn't really have much competition. There is a newly designed tC that will have to work hard to keep its spot. The Hyundai Elantra coupe, for one, should challenge. The new tC has a somewhat cheaper feeling interior than the old one. And the engine doesn't feel as well tuned as the original tC. It feels like a step backward to us, but we will see what the owners say about living with it day in and day out. Research the Scion tC Scion tC Photos & Information Scion tC Specs Scion tC Local Dealer Price Quote
Best Compact Sporty Car – Scion tC

MSRP: $18,725 – $21,815
Invoice: $17,789 – $20,725
Fuel Economy: 23 mpg City, 31 mpg Highway

Scion tC, a Toyota product sold at Toyota/Scion dealers, is a well-built, inexpensive sports coupe that sits atop Power’s VDS tally in the”compact sporty” category where it doesn’t really have much competition.

There is a newly designed tC that will have to work hard to keep its spot. The Hyundai Elantra coupe, for one, should challenge. The new tC has a somewhat cheaper feeling interior than the old one. And the engine doesn’t feel as well tuned as the original tC. It feels like a step backward to us, but we will see what the owners say about living with it day in and day out.

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MSRP: $19,695 - $21,255 Invoice: $18,763 - $20,243 Fuel Economy: 31 mpg City, 37 mpg Highway The least desirable competitor to the Scion tC for us is the Honda CR-Z. The 1.5 liter four cylinder engine is mated to an electric motor to make for a hybrid drivetrain. Honda just seems to be in a muddle about what to do in the hybrid category, and this model shows it. The design is awkward looking and makes for poor rear visibility. It only has two seats where its competitors have four. The interior seems cheap and is devoid of some common features. We love Honda engines and many of their models, but this is a miss. Research the Honda CR-Z Honda CR-Z Photos & Information Honda CR-Z Specs Honda CR-Z Local Dealer Price Quote
Worst Compact Sporty Car – Honda CR-Z

MSRP: $19,695 – $21,255
Invoice: $18,763 – $20,243
Fuel Economy: 31 mpg City, 37 mpg Highway

The least desirable competitor to the Scion tC for us is the Honda CR-Z. The 1.5 liter four cylinder engine is mated to an electric motor to make for a hybrid drivetrain. Honda just seems to be in a muddle about what to do in the hybrid category, and this model shows it.

The design is awkward looking and makes for poor rear visibility. It only has two seats where its competitors have four. The interior seems cheap and is devoid of some common features. We love Honda engines and many of their models, but this is a miss.

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MSRP: $21,700 - $32,200 Invoice: $20,235 - $29,705 Fuel Economy: NA Ford Fusion is a car that Ford launched with a thud, but one into which it poured improvements as it restructured itself and refocused on quality. It has been steadily working up the sales ladder, and Power said all that hard work paid off starting with the 2008 model that topped the list for dependability among owners of mid-sized cars. That means it beat Toyota Camry and Honda Accord. All that learning in the old Fusion was applied to the all new 2013 Fusion, which is better looking, sleeker and better equipped. Time will tell for dependability, but we have high expectations for the new Fusion to live up to the reputation of the old one. Research the Ford Fusion Ford Fusion Photos & Information Ford Fusion Specs Ford Fusion Local Dealer Price Quote
Best Midsize Car – Ford Fusion

MSRP: $21,700 – $32,200
Invoice: $20,235 – $29,705
Fuel Economy: NA

Ford Fusion is a car that Ford launched with a thud, but one into which it poured improvements as it restructured itself and refocused on quality. It has been steadily working up the sales ladder, and Power said all that hard work paid off starting with the 2008 model that topped the list for dependability among owners of mid-sized cars. That means it beat Toyota Camry and Honda Accord.

All that learning in the old Fusion was applied to the all new 2013 Fusion, which is better looking, sleeker and better equipped. Time will tell for dependability, but we have high expectations for the new Fusion to live up to the reputation of the old one.

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MSRP: $18,995 - $25,495 Invoice: $18,730 - $24,330 Fuel Economy: 21 mpg City, 29 mpg Highway The Dodge Avenger is a car we can feel a bit sorry for. It was a car developed while Chrysler was owned by private equity firm Cerberus Capital, which, like most private equity firms, knew more about cost cutting than product development. The car competes in one of the most brutal categories in the auto industry, and just barely competes. Chrysler owner Fiat has made many improvements, but is in process of phasing out the car in favor of one that it developed from scratch. We don't hate the Avenger, but we can only recommend it if it is much cheaper than the other cars in the category when the rebates and incentives are factored in. Research the Dodge Avenger Dodge Avenger Photos & Information Dodge Avenger Specs Dodge Avenger Local Dealer Price Quote
Worst Midsize Car – Dodge Avenger

MSRP: $18,995 – $25,495
Invoice: $18,730 – $24,330
Fuel Economy: 21 mpg City, 29 mpg Highway

The Dodge Avenger is a car we can feel a bit sorry for. It was a car developed while Chrysler was owned by private equity firm Cerberus Capital, which, like most private equity firms, knew more about cost cutting than product development. The car competes in one of the most brutal categories in the auto industry, and just barely competes.

Chrysler owner Fiat has made many improvements, but is in process of phasing out the car in favor of one that it developed from scratch. We don’t hate the Avenger, but we can only recommend it if it is much cheaper than the other cars in the category when the rebates and incentives are factored in.

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MSRP: $34,200 - $46,800 Invoice: $32,070 - $43,320 Fuel Economy: 19 mpg City, 29 mpg Highway Hyundai Genesis is a charmer. Owners appreciate how the Korean company studied and benchmarked both BMW and Lexus to try and learn the best from both about performance and creature comforts. The result is the Genesis, which surprises and delights both on the road and in the wallet. Research the Hyundai Genesis Hyundai Genesis Photos & Information Hyundai Genesis Specs Hyundai Genesis Local Dealer Price Quote
Best Midsize Premium Car – Hyundai Genesis

MSRP: $34,200 – $46,800
Invoice: $32,070 – $43,320
Fuel Economy: 19 mpg City, 29 mpg Highway

Hyundai Genesis is a charmer. Owners appreciate how the Korean company studied and benchmarked both BMW and Lexus to try and learn the best from both about performance and creature comforts. The result is the Genesis, which surprises and delights both on the road and in the wallet.

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MSRP: $38,950 - $46,800 Invoice: $36,613 - $43,992 Fuel Economy: 19 mpg City, 28 mpg Highway It's not that we dislike the S80 or would feel ashamed to own one. It's that the car competes in a fiercely competitive category and seems to stand off to one side of the field watching he action. Safe as ever, yes. But the performance of the base engine is weak and the driving dynamics about as interesting as a 1980s Toyota. Except for those who put safety first and only in their consideration, the S80 just isn't in the game. Research the Volvo S80 Volvo S80 Photos & Information Volvo S80 Specs Volvo S80 Local Dealer Price Quote
Worst Midsize Premium Car – Volvo S80

MSRP: $38,950 – $46,800
Invoice: $36,613 – $43,992
Fuel Economy: 19 mpg City, 28 mpg Highway

It’s not that we dislike the S80 or would feel ashamed to own one. It’s that the car competes in a fiercely competitive category and seems to stand off to one side of the field watching he action. Safe as ever, yes. But the performance of the base engine is weak and the driving dynamics about as interesting as a 1980s Toyota. Except for those who put safety first and only in their consideration, the S80 just isn’t in the game.

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MSRP: $26,435 - $41,325 Invoice: $24,453 - $38,020 Fuel Economy: 18 mpg City, 25 mpg Highway Minivan buyers really do pay attention to studies and surveys more than in any other category. Sienna owners put their minivan at the top of the dependability survey, and that was before this minivan got an overhaul that made it even better. A versatile, nicely appointed interior and more than acceptable road manners makes the Toyota a top choice. Research the Toyota Sienna Toyota Sienna Photos & Information Toyota Sienna Specs Toyota Sienna Local Dealer Price Quote
Best Minivan – Toyota Sienna

MSRP: $26,435 – $41,325
Invoice: $24,453 – $38,020
Fuel Economy: 18 mpg City, 25 mpg Highway

Minivan buyers really do pay attention to studies and surveys more than in any other category. Sienna owners put their minivan at the top of the dependability survey, and that was before this minivan got an overhaul that made it even better.

A versatile, nicely appointed interior and more than acceptable road manners makes the Toyota a top choice.

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MSRP: $24,900 - $29,190 Invoice: $24,165 - $27,275 Fuel Economy: 18 mpg City, 25 mpg Highway It's the cheap one. Kia has been manning the lower end of the price ladder as Chrysler, Honda, Toyota and Nissan have been moving up in price and features. For that, Kia should be commended. Offering a cheaper alternative to families who need seating for seven but not necessarily the wood trim and DVD package is a noble calling. But cutting corners just makes it not as competitive with the big boys. Research the Kia Sedona Kia Sedona Photos & Information Kia Sedona Specs Kia Sedona Local Dealer Price Quote
Worst Minivan – Kia Sedona

MSRP: $24,900 – $29,190
Invoice: $24,165 – $27,275
Fuel Economy: 18 mpg City, 25 mpg Highway

It’s the cheap one. Kia has been manning the lower end of the price ladder as Chrysler, Honda, Toyota and Nissan have been moving up in price and features.

For that, Kia should be commended. Offering a cheaper alternative to families who need seating for seven but not necessarily the wood trim and DVD package is a noble calling. But cutting corners just makes it not as competitive with the big boys.

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MSRP: $29,135 - $40,720 Invoice: $27,459 - $37,972 Fuel Economy: 17 mpg City, 24 mpg Highway In the mid-sized SUV category there is a tie between Ford Explorer and Nissan Murano. No surprise that Ford led in dependability. The company has poured a lot of quality improvement into its SUVs, especially since it does not even offer a true minivan any more. The old Explorer was a winner. It will be interesting to see if the new one launched for the 2012 model year with much better fuel economy grabs and pleases its owners as much as the old one did. Research the Ford Explorer Ford Explorer Photos & Information Ford Explorer Specs Ford Explorer Local Dealer Price Quote
Best SUV – Ford Explorer

MSRP: $29,135 – $40,720
Invoice: $27,459 – $37,972
Fuel Economy: 17 mpg City, 24 mpg Highway

In the mid-sized SUV category there is a tie between Ford Explorer and Nissan Murano. No surprise that Ford led in dependability. The company has poured a lot of quality improvement into its SUVs, especially since it does not even offer a true minivan any more. The old Explorer was a winner. It will be interesting to see if the new one launched for the 2012 model year with much better fuel economy grabs and pleases its owners as much as the old one did.

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MSRP: $26,880 - $28,470 Invoice: $24,999 - $26,477 Fuel Economy: 17 mpg City, 20 mpg Highway The Toyota FJ Cruiser seemed like a good idea. It was meant to be an homage to the old Toyota Land Cruiser of the 1970s, a Jeep-like, fun-to-drive beauty that was loved the world over. But the FJ has always just been…well…awkward. Awkward and clunky to drive, park and see out of. The whole thing. It comes in pretty colors, but it's beastly to drive. Research the Toyota FJ Cruiser Toyota FJ Cruiser Photos & Information Toyota FJ Cruiser Specs Toyota FJ Cruiser Local Dealer Price Quote
Worst SUV – Toyota FJ Cruiser

MSRP: $26,880 – $28,470
Invoice: $24,999 – $26,477
Fuel Economy: 17 mpg City, 20 mpg Highway

The Toyota FJ Cruiser seemed like a good idea. It was meant to be an homage to the old Toyota Land Cruiser of the 1970s, a Jeep-like, fun-to-drive beauty that was loved the world over.

But the FJ has always just been…well…awkward. Awkward and clunky to drive, park and see out of. The whole thing. It comes in pretty colors, but it’s beastly to drive.

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