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The recent L.A. wildfires burnt thousands of vehicles, homes, and businesses.
The overall cost from the disaster is still being calculated, although, according to Automotive News, used-car buyers in the West are seeing prices increase dramatically.
The wildfires torched an estimated 6,300 vehicles in the L.A. area, Carfax said. This created an increase in demand for replacements and contributed to the used-vehicle retail price surges in California, Automotive News said.
Read: CARFAX Estimates Up To 6,300 Vehicles Lost to California Wildfires
For example, the average price for pickup trucks rose $400 in February in the West, but nationally, the average price decreased $350 in the same month, according to Automotive News.
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Prices have been seen to increase in situations of reduced inventory and increased demand; both happened in Southern California.
Watch: How LA Wildfires Could Affect Car Market
Kevin Roberts, the director of economic and market intelligence car shopping site CarGurus, told the Free Press that the average list price for new and used cars throughout the impacted ZIP codes is 25% higher than the average listing in California, Detroit Free Press said.
Behind New York City, L.A. is the highest car market in the U.S., accounting for 6.1% of retail auto sales in the nation, said Tyson Jominy, the vice president of data and analytics at J.D. Power.
“Jominy said J.D. Power's data showed that during the first week of the fires, Los Angeles' share of new vehicle sales fell 0.6%, or by about 1,000 vehicles from Dec. 31 through Jan. 5,” Detroit Free Press said.
The automotive industry has rallied to support L.A. wildfire relief, with Stellantis donating more than $500,000 to the United Way of Greater Los Angeles.
Read more on the impacts of the LA wildfires here.
Joining them in these efforts are General Motors, American Honda, Hyundai and Genesis Motor America, Mazda North American Operations, and Toyota Motor North America, all providing vital assistance, according to Automotive News.
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