Don’t let scammers sell you a hurricane-damaged used car. There's good reason to have concerns about buying a water-logged used car if you’re not provided disclosure of flood damage.
Perform basic due diligence and use a discerning eye to avoid purchasing a hurricane-damaged vehicle from a dishonest seller.
After a hurricane, vehicles totaled by insurance companies are sent to a salvage auctioneer. Although flood vehicles aren’t identified by storm, salvage auctioneers report that thousands of totaled vehicles were put up for auction after Hurricane Harvey in Texas.
Salvage auction buyers recognize that any vehicle on the block has arrived there due to a serious misfortunate. It’s possible to obtain more information about the vehicle by researching its Vehicle Identification Number (VIN) on the dashboard and title.
Salvaged vehicles are viewed differently by the states. For instance, a flood vehicle with little visual damage may be turned to use without necessary replacement of electrical parts. The new owner may have serious problems within weeks or months as a result.
Anti-Car Theft Act of 1992
According to the U.S. Justice Department, just 38 state DMV title agencies comply with the Anti-Car Theft Act of 1992. This law requires title data of a vehicle to be entered into the federal system and the vehicle’s history to be verified before the issuance of a new title.
Buyers must realize that not all information about the totaled vehicle may be available. Some sneaky sellers want to sell these damaged vehicles without full disclosure. It’s still important for buyers to research flood car databases such as the National Insurance Crime Bureau’s VINcheck or the National Motor Vehicle Title Information System (U.S. Justice Department).
Center for Auto Safety
The Center for Auto Safety, a consumer advocate organization, wants to help consumers obtain title check information. They offer free access to databases managed by the U.S. Justice Department.
Because uniform standards don’t exist between the states, it’s possible for some unscrupulous sellers to perform “title washing.” Title washing occurs when the seller transfers ownership through a state willing to issue a clean title to a salvage vehicle. Although it’s more challenging to get a clean title these days, it’s still possible to use certain workarounds, e.g. using a mechanics lien to get a clear title.
After a thorough cleanup, water-damaged cars may look attractive to the casual observer. Bring an experienced mechanic to inspect any car for hurricane damage.
Consumer Reports suggests the following tips to identify flood-damaged vehicles. Look for the following signs, including:
Buyers should beware of any car deal that’s just too good to be true. If the seller offers a vehicle at a very inexpensive price, compare prices online. Carefully inspect the vehicle to see if it’s flood damaged.
If your seller won’t allow you to bring a mechanic to inspect the vehicle, consider this a deal-breaker.
Inadvertently buying a salvage vehicle, buying a “for sale by owner” vehicle, or a vehicle with bogus or forged documentation can be heart-breaking.
Unfortunately, an owner with minimum car insurance coverage may replace upholstery or carpeting and offer the vehicle to an unsuspecting new owner. Some sellers unload their waterlogged car or truck in another state to escape close scrutiny.
Car sellers tamper with documentation and title records to fool the new buyer into believing the vehicle is in great condition.
It’s possible to avoid making a poor used car purchase by working with a reputable used car dealer. The dealer’s reputation almost always precedes it.
A used car “bargain” can turn out to be a hurricane-damaged used car. Do business with a used car dealer with positive feedback. Don’t make pennywise but pound-foolish decisions when it comes to the purchase of your next ride.
Check out Shabana Motors’ great used car inventory now.