By Lauren Fix, The Car Coach
Hurricane Ian flooded an untold number of vehicles when it hit Florida and other southern states this month. Be aware of the newest warnings for unsuspecting car-buyers against the heightened risk of fraud as those cars may soon appear for sale across the US— with no disclosure of the damage. This is not an isolated incident because this problem has occurred in the past and keeps rearing its ugly head. Used car buyers need to be aware and not take the risks of buying a flood damaged car.
You may have seen the $1 million dollar McLaren, Porsches, Bentleys, and other luxury and performance cars destroyed by the flood waters. Everyday trucks, cars, and SUVs were also water logged due to the storm surge.
The National Insurance Crime Bureau (NICB), a nonprofit that works to combat and prevent insurance crime, says that in the wake of major flood events, scammers will emerge and buy up water-ravaged cars and try to resell them as undamaged vehicles. Just like past hurricanes, these vehicles end up all over North America.
We anticipate a significant amount of flooded-out vehicles to be cleaned up and then resold in the state of Florida and other states. This is very common, especially as there is a high demand for used cars globally. What can you do to avoid a flood damaged car?
It is too soon to know how many cars were damaged by Hurricane Ian, but the risk of fraud is high. With the cost of used vehicles up nearly 40 percent since 2019, selling flooded-out cars is incredibly profitable and, therefore, an attractive scheme for crooks.
The NICB says consumers should be on the lookout for any potential hidden flood damage when shopping for used vehicles by checking for signs of water damage on vehicle. There are some easy ways to spot a flood damaged car.
Some of the signs include new carpeting, upholstery, or seat belts. Other red flags are rusty screws or other metal parts, mud, or signs of submergence in the engine compartment or under the dashboard, and any problems with the operation of electrical components. Look under the fuse box, if you see moisture, don’t buy the vehicle.
The most important thing a buyer should do is enter a car’s vehicle identification number (VIN) into the NICB’s VINCheck database to investigate whether a car was declared as salvage or a “total loss” from flooding. But there will only be a record if a claim was turned in to an insurance company. Even CarFax has data on only 60 percent of the flooded out vehicles.
Flooded vehicles that are uninsured at the time of damage will not have documented evidence in the VINCheck system and can, therefore, be cleaned up and sold by unscrupulous owners without disclosing the damage. Some scammers might even sell such vehicles in states far away from Ian’s path of destruction, where buyers may be less likely to suspect flood damage. Or title wash them by moving the car from state to state to remove the marking.
NICB data shows that more than 422,000 vehicles were reported damaged due to Hurricane Harvey, and more than 215,000 from Hurricane Irma in 2017. A quarter-million vehicles were damaged by Hurricane Sandy in 2012 and roughly 300,000 from Hurricane Katrina in 2005. And those numbers just include claims made to insurance companies.
The best way to avoid purchasing a flood damaged car is to take it to a certified technician, pay for the full inspection and you will know pretty quickly. It’s important to note that flood damaged cars are not covered under factory warranties, safety systems don’t function properly and the electric problems can be endless, leaving you with a hunk of metal.
Also, waterlogged electric cars are imploding in Florida after Hurricane Ian.
There’s a ton of electric vehicles that were disabled from Ian. As those batteries corrode, fires start. Electric vehicles ending up underwater can later burst into flames. The batteries in the water-logged autos begin to rapidly corrode and then combust. There have been over a dozen so far from Hurricane Ian. This could also be a problem in other states with salt on the roads and potential future issues.
No car is entirely safe when driving through flood water. Proceed with caution when driving through any type of floods or large puddles. All it takes is 6-inches of water to float a car of any type. The cost of all the damaged vehicles of all prices ranges will cost everyone more in insurance rates. Avoid water if you can, if not, that is why you buy insurance.
There is so much more to discuss on this, put your comments below and let’s start the conversation.
The opinions expressed in posts to the NMA Blog belong to the author and do not necessarily represent the National Motorists Association. The content of the NMA Blog is for informational purposes only and is not intended as legal advice. No representations are made regarding the accuracy of NMA Blog posts or links found within those posts.
Lauren Fix, The Car Coach®, is a nationally recognized automotive expert, analyst, author, and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and aspects, energy, industry, consumer news, and safety issues.
Lauren is the CEO of Automotive Aspects and the Editor-in-Chief of Car Coach Reports, a global automotive news outlet. She is an automotive contributor to national and local television news shows, including Fox News, Fox Business, CNN International, The Weather Channel, Inside Edition, Local Now News, Community Digital News, and more. Lauren also co-hosts a regular show on ABC.com with Paul Brian called “His Turn – Her Turn” and hosts regular radio segments on USA Radio – DayBreak.
Lauren is honored to be inducted into the Women’s Transportation Hall of Fame and a Board Member of the Buffalo Motorcar Museum and Juror / President for the North American Car, Utility & Truck of the Year Awards.
Check her out on Twitter and Instagram @LaurenFix.
