Warning: Thousands of flooded cars could be resold to unsuspecting buyers

[mahatmakanejeeves]

Source: Dallas Morning News

Biz Beat Blog

Terry Box/Auto Writer
[e-mail]

Published: June 5, 2015 1:52 pm

The floods last month in Dallas, Austin and Houston may have damaged as many as 10,000 vehicles, some of which will likely be resold to unsuspecting buyers.

That was the warning Friday from the National Insurance Crime Bureau, which said 2,500 cars, trucks and motorcycles have already been towed to a facility in Houston.

Many will be sold at auction – ostensibly for salvaged parts – but some will be repaired and sold by unscrupulous retailers.

“Vehicles may be purchased at bargain prices, cleaned up and then taken out of state,” the insurance group said.

Read more: http://bizbeatblog.dallasnews.com/2015/06/thousands-of-flooded-cars-could-be-resold.html/

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Hat tip, Jalopnik: Buyer Beware: 10,000 Flood-Damaged Texas Cars Could Hit The Market

Patrick George
6/06/15 11:25am

Many parts of the Lone Star State are still recovering from last month’s devastating flash floods. The after-effects of the storm will likely be felt for years, and in one way, they could have an impact on the rest of the country: as many as 10,000 flood-damaged cars and trucks could be resold out of state.

The National Insurance Crime Bureau reports that already, about 2,500 flooded vehicles have been towed to a processing facility in Houston owned by Copart, a company that works with insurers to salvage and resell vehicles. Most of those will be sold for parts.

But there’s still a chance that flooded vehicles could be purchased on the cheap, cleaned up, taken out of state and then given a swapped VIN and new title with no indication they were damaged by floods, the bureau reports. Buyers could unwittingly end up with a badly-damaged used car they were told runs just fine. ... Via The Dallas Morning News, here are some ways to tell if a used car has flood damage:
(snip)
....

Most insurers report to the bureau whether a vehicle has ever been declared a total loss, salvaged or stolen. You can search by VIN at VINCheck℠.

[prairierose]

1. This happens after every big flood...

maybe it's time our law enforcement began to follow these cars from the flood area to where they are sold as " good used cars".

[Contrary1]

4. That's pretty much impossible...

I used to work for a used car broker. These cars, as well as those with rolled-back odometers, are sold back and forth (usually across state lines) several times in a matter of just a couple weeks. This is done to slow down the paperwork.

On a personal note, my husband and I bought a used car many years ago. It was supposed to have only 35,000 miles on it. Eight months later, we received a letter from the Michigan Attorney General. In the previous three months before we bought it, the car went back and forth through six different dealers in Ohio and Kentucky.
Somewhere in the journey, the miles went from 80,000 to the 35,000.

Then, it went to Michigan; where a dealer in Indiana bought it. We were the lucky ones who ended up with it.

[jtuck004]

7. The only way to fix it is to buy the cars from the owners and destroy them. That would take an

insurance effort that cares more about their neighbors than profit. Like from the government.

That should happen any time now...

[kiri]

11. water is no cause for hysterics

I bought a Lexus fully knowing it had been in a flood. Cars get rain, sleet, splashed up on from below, all the time. Water rarely does serious damage, if allowed to dry out. Salt water: wash it down with fresh water, let it dry.

For $6000 I bought a $45,000 car. Been working fine for 6 years.

I surely insist on full disclosure, and I really like getting a bargain due to the hysteria of others.

[DamnYankeeInHouston]

2. Yup. When I first moved to Houston, I got a dirt cheap, pavement colored Honda Civic.

It kept stalling out on me no matter how many times it visited the mechanic. The best thing about it was it was so small I could push it and steer it at the same time. When I traded it in, the dealer asked if it had ever been under water. I thought, "Well, that explains it." Buyer beware.

[TheCowsCameHome]

3. This happens after every storm surge or flooding.

A lot of unsuspecting buyers get taken for a ride.

[erronis]

5. So are these title checking services not worth using?

The ones that supposedly tell you if the VIN has been involved in an accident or flooding.

Of course if various parts from a lot different cars are stuck into a non-damaged VIN car, how would anyone know?

[MicaelS]

9. No, they aren't very good.

I had a 1998 Malibu that crapped out on me in 2010. Took it to the Chevy dealer, and they showed me the firewall behind the dash and it was rusted. Said the only way that could have happened was if it had been underwater. It had been an Avis rental car, and it had a clean Carfax. I bought it from a local dealer not Avis.

[One_Life_To_Give]

14. Depends if it's recorded

These services can only report what a dealer has logged into the database. I would expect a Salvage Title would be there. But if the car was uninsured for flood damage then it may have been sold/repaired without the State Motor Vehicle's ever issuing a SALVAGE title.

[Purveyor]

6. At least it was 'fresh water' unlike the hurricane surges with salt water. I'd buy one on the cheap

as long as it was a fresh water flood.

[The Last Dem.]

8. Years ago,

I and a friend were working in Tulsa Ok and we need another car as we were working in separate areas so he bought an old used Buick for his work car. The salesmen that sold him the car had both eyes blacked and both lips were puffed up and a few small cuts on this forehead. I was just standing around waiting for my friend to close the deal, and I ask another salesman what the story was with him, if he knew. Yes, he said he had sold a flood damage car to a guy and when he found out he came back and settled up with him. WOW!

[roamer65]

10. Another thing to do is follow the titles.

If you are in a non flood state, check with your state agency that handles automobile titles. If it has come out of a flood state, stay away from it.

[csziggy]

12. When I was shopping for my first car, there were flood damaged cars from PA

All over the car lots in Florida. One of the cars I really liked looked great - until we opened the trunk to check the spare tire. The carpet in the trunk smelled a little musty but not a lot worse than most Florida car trunks smell with the humidity. The real give away was when we looked in the spare tire well - it had three inches of water in it!

Whoever had cleaned the rest of the car might have checked the trunk but never pulled the spare out to make sure the spare tire well was dry.

While the car ran great, looked good, and the price was amazing, my Dad would not let me buy that car.

Here's how long ago that was - what I really wanted to buy was a small car that was really cool and new to the American market - the first version of the Honda Civic! I thought those cute three door hatchbacks were just adorable.

[damyank913]

13. Not just cars...

...after Katrina hit New Orleans we got hit with a bunch of air conditioners that had been under water. They were selling at amazing prices.