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The Effects of the BP Oil Spill on Car Sales and Dealerships

It does not take a wild stretch of the imagination to understand that the effects of the BP oil spill will encroach beyond the people and business that depend directly on fishing and tourism for a living. The support businesses, including the automobile industry, are sure to be affected because their market is affected.

For example, a restaurant owner who, prior to the BP oil spill was making good money, was planning to buy a new car to replace a car that has been damaged although still operational in a recent car accident. The BP oil spill affected the restaurant owner’s business so much so that replacing a still serviceable car would be relegated as a last priority. This means lost car sales and since the problem is quite widespread, car dealerships in the area are sure to be in trouble.

It is highly likely that car dealerships and related car sales businesses will have a legitimate economic loss claim against BP. It is relatively simple to prove that the economic loss is due to the oil spill. The business, such as a car dealership, needs to show a total aggregate revenue loss of 8.5% or more May to December 2010 compared to their gross revenue between May 2007 and December 2009, and then an aggregate revenue increase of 5% or more for May to December 2011. This is referred to as the V-shaped Revenue pattern that may mean eligibility for BP oil spill compensation under the Class Action Settlement Agreement.

While many businesses are slowly recovering from the effects of the BP oil spill, the economic losses of car dealerships in the area is probably going to continue for much longer than other businesses. New cars are considered luxuries and not likely to be on the top of anyone’s list for a long time if there is a choice. It is clearly necessary to claim some type of compensation from BP for this, but it will not be easy because there are so many people making similar claims. It would need the expertise and knowledge of a lawyer who has handled BP oil spill economic loss claims before to make success a reasonable expectation.