Following a flood disaster occasioned by Hurricane Harvey in Texas, United States of America, insurance companies who have taken possession of assets designated mostly as scrap will need to figure out how to get the best of whatever is left of the value of the assets.
Top of the items to be disposed are motor vehicles which have been submerged for days under the floods. As the case with other severe hurricanes that have hit America, the route to market for these cars will be via the salvage auction.
Nigeria is said to be among the top destination for salvage cars from the US and also ranks as one of the top export destinations for used cars in the US. Another data put the value of used vehicle export to Nigeria recently as at $99m
National Daily gathered that Nigerians are already gearing up to purchase thousands of these cars that will be sent to the salvage auctions by the insurance companies.
According to one account, the cars could be bought as cheap as $1000 in these auctions and will be purchased and shipped to Nigeria for repairs and resale.
Experts however believe that cars salvaged from natural disasters hardly ever perform optimally. This is because electrical parts would have been damaged severely. Also, rust on other mechanical parts will lead to incessant repairs reducing the value of the vehicle faster.