Floodwater surrounds vehicles after heavy rains on a freeway in Brooklyn, New York.
Ed Jones | AFP | Getty Images
Anyone considering buying a used car in the coming months may want to be extremely cautious.
As storm-ravaged areas take stock of the destruction left by Hurricane Ida, thousands of flooded cars are expected to be part of the personal property that was ruined. While cars with flood damage may have titles that indicate this, the system is not infallible, meaning that some of these cars are likely to be bought by buyers who don’t know it.
“Unfortunately, after major hurricanes or flood events, we see scammers trying to scam consumers by selling cars damaged by the floods,” said Tully Lehman, public affairs manager for the National Insurance Crime Bureau.
On this occasion, the potential for fraud is the high demand for used vehicles, as the global shortage of microchips continues to slow down the production of new vehicles. This demand could create an opportunity for scammers to take advantage of buyers ’eagerness to seal a deal, experts said.
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Ida crashed into Louisiana on August 29 and then moved inland, eventually crossing the mid-Atlantic and northeast. The storm left a trail of devastation in the wake of deadly flooding, strong winds, storm surges and tornadoes. This went through the heels of two other big storms that threw torrential rains to the southeast and northeast.
According to Carfax spokesman Chris Basso, approximately 378,000 cars damaged by the floods were already on the roads before they reached Ida.
“If the story stays true, we look at a few thousand more [flooded] vehicles, and a decent percentage of them will return to the market, ”Basso said.
Floodwaters can destroy, sometimes slowly, the electronics, lubricants, and mechanical systems of vehicles. According to ConsumerReports, corrosion can find its way into the car’s vital electronics, including airbag drivers.
Buyers should always review the “vehicle history report” of a used car to make sure they know what they are buying, regardless of when or where they make the purchase. Flooded cars usually end up on sale in places far from where they were originally damaged.
Through services like Carfax or the National Insurance Crime Bureau’s VINCheck, you can enter a vehicle’s vehicle identification number, or VIN, to see if there’s anything in its history that is a red flag. However, you may not be able to know everything.
Basically, when an insurance company receives a claim for a flooded car and the total vehicle (i.e., repairs would cost more than it is worth), the title of the car is usually changed to reflect its condition.
These dilapidated cars are typically sold at garbage recovery auctions and vehicle builders, according to ConsumerReports. Its resale to consumers may be legal if the title reveals the damage caused by the flood.
Unfortunately, after heavy hurricanes or floods, we see scammers trying to scam consumers by selling cars damaged by the flood.
Tully Lehman
Public Affairs Manager of the National Insurance Crimes Office
However, not all vehicle owners file an insurance claim. If they don’t have comprehensive coverage (the part of car insurance that the floods would fall into), they’re generally unlucky. This means that without the involvement of the insurance company, flood damage may not end up being officially recorded anywhere.
“Unfortunately, there will be those who, due to not having insurance coverage for flood damage, will try to clean their car and try to sell it to unsuspecting buyers at some point along the way,” Lehman said.
And there are some dealers who will clean up flooded vehicles and sell them, either locally or in another state where licensing rules are less stringent.
“This makes close-up car control, even in batches, very critical,” Lehman said.
According to Carfax, there are things you can look for in a used vehicle that could suggest flood damage:
- A musty smell inside, which sellers sometimes try to cover with a strong air freshener;
- Upholstery or carpet that may be loose, new or stained or that does not appear to match the rest of the interior;
- Wet carpets;
- Rust around the doors, under the control panel, on the pedals or inside the hood and trunk locks;
- Mud or slime in the glove compartment or under the seats;
- Breakable wires under the control panel;
- Moisture or pearls of moisture on indoor lights, outdoor lights, or instrument panel.
You should also test the car and have it inspected by a trusted mechanic.
“And remember, if the price seems too good to be true, it probably is,” Lehman said. “Trust your instincts and if you have a bad feeling, go somewhere else.”