Flood-damaged vehicles might attain the market. Right here’s the way to keep away from shopping for one

Anybody who considers shopping for a used automotive within the upcoming months could need to be extra-cautious.

As storm-ravaged areas take inventory of the destruction left by Hurricane Ida, hundreds of flooded vehicles are anticipated to be among the many private property that was ruined. Whereas vehicles with flood injury could have titles that point out that, the system will not be foolproof — which suggests a few of these autos are prone to be bought by unknowing patrons.

“Sadly, following main hurricanes or flooding occasions, we see fraudsters attempt to rip-off shoppers by promoting vehicles broken within the flooding,” stated Tully Lehman, public affairs supervisor for the Nationwide Insurance coverage Crime Bureau.

Compounding the potential for fraud this time round is the excessive demand for used vehicles as the worldwide scarcity of microchips continues slowing manufacturing of recent automobiles. That demand might create a chance for scammers to reap the benefits of patrons’ eagerness to seal a deal, consultants stated.

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Ida slammed into Louisiana on Aug. 29 after which moved inland, finally crossing over the mid-Atlantic and Northeast. The storm left a path of devastation in its wake from lethal flooding, excessive winds, storm surge and tornadoes. That was on the heels of two different massive storms that dumped torrential downpours within the Southeast and Northeast.

Roughly 378,000 flood-damaged vehicles already had been on the roads earlier than Ida hit, in accordance with Carfax spokesman Chris Basso. 

“If historical past holds true, we’re a number of thousand extra [flooded] automobiles, and a good share of them will make it again into the market,” Basso stated.

Floodwaters can destroy — typically slowly — electronics, lubricants, and mechanical programs in automobiles. Corrosion can finally discover its method to the automotive’s very important electronics, together with airbag controllers, in accordance with ConsumerReports.

Consumers ought to all the time test a used automotive’s “car historical past report” to ensure they know what they’re shopping for, no matter when or the place they make the acquisition. Flooded vehicles usually find yourself on the market in locations removed from the place they initially had been broken.

By companies like Carfax or the Nationwide Insurance coverage Crime Bureau’s VINCheck, you may enter a automotive’s car identification quantity, or VIN, to see if there’s something in its historical past that is a crimson flag. Nevertheless, you could not be capable of discover out every part. 

Principally, when an insurance coverage firm receives a declare for a flooded automotive and the car is totaled — which means the repairs would price greater than the automotive’s price — the automotive’s title typically is modified to replicate its standing.

These ruined vehicles are usually bought at salvage auctions to junkyards and car rebuilders, in accordance with ConsumerReports. Reselling them to shoppers could also be authorized if the title discloses the flood injury.

Nevertheless, not all automotive homeowners file an insurance coverage declare. If they do not have complete protection — the a part of automotive insurance coverage that flooding would fall underneath — they’re typically out of luck. Which means that with no insurance coverage firm involvement, the flood injury could not find yourself formally recorded wherever. 

“Sadly, there can be those who, resulting from not having insurance coverage protection for flood injury, will try to scrub their automotive and attempt to promote it to unsuspecting patrons sooner or later in time down the highway,” Lehman stated.

And, there are some sellers that can clear up flooded vehicles and promote them, whether or not regionally or in one other state the place titling guidelines are much less stringent.

“This makes testing vehicles carefully, even on heaps, very important,” Lehman stated.

There are issues you may search for in a used car for that might counsel flood injury, in accordance with Carfax:

• A musty odor within the inside, which sellers typically attempt to cowl with a robust air-freshener;
• Upholstery or carpeting which may be unfastened, new or stained or does not appear to match the remainder of the inside;
• Damp carpets;
• Rust round doorways, underneath the dashboard, on the pedals or contained in the hood and trunk latches;
• Mud or silt within the glove compartment or underneath the seats;
• Brittle wires underneath the dashboard;
• Fog or moisture beads within the inside lights, exterior lights or instrument panel.

You additionally ought to take a look at drive the automotive and have it inspected by a trusted mechanic.

“And bear in mind, if the value appears too good to be true, it seemingly is,” Lehman stated. “Belief your instincts and if in case you have a foul feeling, go elsewhere.”