During severe storms and flooding, the victims of water damage extend beyond just a few individuals; it can potentially impact the entire nation, with flood-damaged vehicles not necessarily ending up as scrap. Some of these cars might eventually find their way into people’s garages.
According to data from the American used car data provider Carfax, there are currently 454,000 flooded cars on the roads, and many owners are unaware of this fact, although they may notice issues with the car’s engine. How can one avoid purchasing a flood-damaged vehicle?
Typically, insurance companies declare flooded cars as total losses, which are then sold at salvage auctions to junkyards and car refurbishers. However, it is legal to resell these vehicles to the public if the damage is disclosed in the title.
Salvaged cars are usually clearly marked with tags like “salvage” or “flood,” but in some regions, markings may only consist of numerical codes or obscure letters.
Salvaged cars cannot be registered until necessary repairs are made. Once the vehicle passes inspection, it is assigned a new title, “rebuilt,” and can be registered for consumer use.
However, a survey by Consumer Reports found that some flood-damaged vehicles with a clean history enter the market.
When buying a used car, it’s recommended to check the National Motor Vehicle Title Information System (NMVTIS) for government-approved vehicle history reports. NMVTIS is cracking down on “title washing” practices, which often occur when cars are flooded or stolen. These vehicles receive clean titles in lenient regulatory states.
People can also search the National Insurance Crime Bureau (NICB) for the vehicle identification number (VIN) to see if participating insurers have designated the car as salvage.
For comprehensive history, ordering a Carfax report is advisable. In addition to ownership records, you can learn about the vehicle’s maintenance and accident history.
However, if the original owner of a flood-damaged car did not have comprehensive insurance during the disaster, the insurance company might not declare the car as salvage. In such cases, the car’s title may remain clean, especially if repair costs did not exceed a certain threshold. Unfortunately, only a few states provide “flood vehicle” designations.
Title or vehicle history reports are not foolproof and cannot guarantee a car is problem-free. It’s essential to thoroughly inspect the vehicle.
If you are aware that the car comes from a storm-prone state, this is particularly important.
Check for water damage starting with the smell. If the car emits a musty odor like an old basement, or if there’s an overpowering air freshener scent, the seller might be trying to conceal something.
Any new interior components in an old car should raise suspicion, as most people do not replace old interiors, indicating a past issue.
Another sign is the wiring. Check the wiring below the dashboard; it should be flexible, and if it feels brittle, the vehicle likely sat in water. Also, inspect the inside of seatbelt retractors for moisture, mold, and dirt, often overlooked by sellers.
During flooding, mud or silt can accumulate in unexpected places. Check the glove box, located near the passenger’s legs, for a thin layer of dirt or sediment-like stains. Other hiding spots for debris include:
– Engine crevices
– Starter motor
– Power steering pump
– Below the spare tire
Start the car and check the speakers on the doors. If they produce static, the car may have been flooded. While flooding might not be the root issue, other evident signs should be a cause for concern. Look for water marks on the doors when inspecting the speakers as they might be faint and require careful observation.
Finally, check under the hood for signs of oxidation. You may need to disconnect electrical and mechanical connections. Signs of flooding include copper rust or green tarnishing.
After a storm, buying a used car requires caution, as some states do not inspect existing salvage titles before issuing new ones.
Deceptive sellers can obtain a clean title and sell you a flood-damaged car, often within months following a major storm or flood.
While most people aim to find affordable cars when purchasing, it’s crucial to deal with reputable dealers or sellers. If the price seems too good to be true, significantly lower than Kelley Blue Book’s valuation, proceed with caution. Never buy a car without a title, as it usually indicates whether the car is a salvage.
If you purchase a flooded car, the engine likely has severe issues, even if they might just seem minor.
Consider the insurability risk; your insurance company might not provide comprehensive or collision coverage for salvage cars, only offering liability coverage.
Do your research and avoid buying flooded cars.