It now seems likely the total loss of vehicles from both events will be around the 20,000 mark.

Industry estimates are that around 15,000 to 16,000 vehicles, including trucks, machinery and caravans were lost in the first floods and the losses from the second event took the total to an estimated 20,000. 

The industry is saying that it will be difficult to replace this number of cars in the short term and that the prices of used cars in the markets surrounding the flood zone will likely rise dramatically.

The number of lost vehicles could still increase. There are still cars to be accounted for that were swept away from where their owners left them and insurers are still catching up with those. 

In addition, claims for cars tend to take second place as owners focus on getting claims for their flooded housing ahead of their cars which, they are aware, they will struggle to replace in the short term because of the vehicle supply shortage.  

Josh Cohen, sales manager of salvage and MVR at Manheim told GoAutoNews Premium that it would take a little longer before the full extent of lost vehicles could be counted.

“The devastation caused by the floods has been heartbreaking and it will take time for customers to work through the damage caused to their homes and property. 

“We have been made aware that in some instances cars were not in the place they were left as the water rose; they have been taken by the water and they have floated down river. This means the recovery of some vehicles is taking longer.

“It is estimated that the total event will probably nudge towards 20,000 vehicles and assets across Queensland and the Northern Rivers regions.”

Mr Cohen said that Manheim has established 10 special holding yards to manage and process event-damaged vehicles. He said there were too many vehicles coming through to hold the vehicles on Manheim’s existing properties and this has enabled the company to manage business as usual and event volumes more effectively.

“We currently have six sites set up in Brisbane. And we have another five sites established within the  Northern Rivers area around Ballina, Lismore and Grafton. 

Mr Cohen said that 95 per cent of the vehicles are classified as statutory write-offs and can never be driven in Australia again.

“This means that they are too damaged to go back on the road here. A lot of the vehicles will be absorbed for parts. They will get recycled through dismantlers for second hand parts and then anything that is high-end or four-wheel drive will be considered as export opportunities to overseas markets where they will be refurbished.

“A number of them will be sent into countries like Africa or desert climates that are very dry. So it helps, once they have refurbished them, it helps to maintain and not have residual issues from these flooding events occurring with these vehicles.”

He said the vehicles will be auctioned individually to buyers who can access Manheim’s auctions from living rooms and offices all around the world. 

He said a lot of buyers have local connections including Australian-based contacts who source vehicles affected by these  particular events to meet their customers’ demand from those countries.

Mr Cohen said that flood damaged cars were being processed as they arrived at each holding yard. 

“They get booked into our system including images; highlighting the four quarter panel shots, side shots and interior shots, if possible. Some of these cars have had quite a lot of mold starting to form inside. This makes it impossible to get clear interior shots as our teams are unable to open vehicles to protect their health and safety. 

“We also try to get the vehicle started so that we can mention that it was starting on arrival.”  He said between 20 and 25 per cent of engines in flooded cars will still start.

Mr Cohen said that the loss of the cars was “just adding another 20,000 people who want to buy a vehicle; it just adds to the complications we are already facing in that marketplace. And we are going to see that reflected in used car pricing, especially in that Brisbane and northern New South Wales area”.

By John Mellor