Buyer Beware - Does That Car Have Flood Damage?

Damaged Cars May Soon Arrive on Dealer Lots

If you plan to purchase a used vehicle in the next few months, be sure that you are on the lookout, but unfortunately not just for the big bargains. Instead you will also need to be watching out for the possibility of fraudulent flooded vehicles.

A wave of flood-damaged vehicles from Hurricane Sandy could sweep soon through the national auto market. Damaged cars and trucks from cities and towns affected by the storm are likely to make their way to auto auctions across the country. Once on used-car lots, these vehicles may then be sold at deep discounts relative to the going rates of similar cars, but without any disclosure from sellers about the vehicles’ exposure to the storm, echoing a common practice in the aftermath of Hurricane Katrina in 2005.

Flood-damaged vehicles can be shipped anywhere for resale, and they often continue to appear in the marketplace for up to a year after a major flood. While it is not illegal to sell a flood-damaged car, it is illegal to not inform the consumer the car was damaged. Sellers cannot misrepresent a vehicle.

The most effective way for a used car buyer to weed out a water-damaged vehicle is to make note of the following...

1. Are there damp or musty odors inside the vehicle?

2. Have the carpet and/or seats been replaced or recently shampooed? Pull back the carpet at different areas and look for mud, dirt or water stains. It is easiest by pulling up the plastic sill plates, that in most cases pull up by hand with no tools required.

3. Look under the car for rust. It is uncommon to find rust in a newer car and in those that are owned or sold in Southern states, where road salt is very uncommon.

4. Open all doors, hood and trunk to inspect for rust, mud and dirt or discoloration of the frames, hinges and under the weather stripping.

5. Pay special attention to tight crevices and, in particular, under the dash for telltale signs of mud.

6. Check all warning lights, window motors and all electrical components to ensure they work properly. While a non-working part alone does not mean the vehicle was flooded, it combined with other problems is a cause for concern and could lead to expensive repairs.

7. Get a CARFAX (www.carfax.com). Always ask for the vehicle history report for any used car you are purchasing! A vehicle history report will tell you if a car has been involved in accidents, but also if the car has been salvaged, potentially from flooding.

8. Always have a car you plan to buy inspected by a mechanic you trust. Nearby locations can be found at AAA.com/Repair. On a garage lift, the car can be inspected more thoroughly. A mechanic can also run diagnostics on the electrical system, where the biggest problems occur on flooded cars.

The risk of buying a flooded car should add an additional layer of scrutiny to what always should be a rigorous process. And if you, as a potential buyer, are at all nervous, and something doesn't feel right, walk away from it. 

Hopefully with these tips and a keen eye, you'll be well-equipped to find the right vehicle for you, and not this one...EEEK!!!