By Lauren Fix
SCAM ALERT! Flood Damaged Cars Are On Used Car Lots NOW. Be careful when shopping for a used car, as there have been reports of cars that have been flood damaged and altered to trick car buyers.
Be sure to watch this video to learn how to stay safe when shopping for a used car. We’ll share some tips on how to avoid being scammed and what to watch for when shopping for a used car. Finally, we’ll give you a list of resources to help you protect yourself when shopping for a used car!
The recent winter storms that have hit California and Hurricane Ian in Florida have dumped trillions of gallons of water. Where are all the flood damaged cars going? Everywhere and every state. Thousands of flood damaged damaged are about to hit the market and your local used car lots.
The next few weeks and months are going to be busy for car auctions and vehicle insurance companies as claims for flood damaged vehicles come in and these cars head to auction. The titles are supposed to be marked as flood damaged and totaled. These vehicles pop back up on the market.
While the used car market remains in chaos the inventory seems to be improving a bit, many dealers and sellers are still inventory starved so there is a demand for these cars. But you need to know more so you are not stuck with a hunk of metal.
Many flooded vehicles will be totaled by insurance companies — this is generally done when the cost of the necessary repair work is equal to or more than the value of the vehicle. These cars will be retitled via the California Department of Motor Vehicles with “salvage,” or “junk” designations, which alert consumers to their past damage or other issues. Then, a large number will be unloaded at auctions
Following Hurricane Ian’s devastating assault on Florida and neighboring states in September, Carfax, the vehicle data firm, warned consumers of the risks of buying used cars with water damage. The company also estimated that flooding brought on by the hurricane may have damaged as many as 358,000 vehicles.
A host of bidders will compete for the drowned derelicts — some of whom may have less than honest intentions for the reselling of the rides. And that matters, because cars that have suffered water damage could be perilously unsafe, both physically and technologically, even if they don’t look that way, said Drury, director of insights for Edmunds.
Before the hurricane, Carfax estimated that in 2022 there were about 400,000 vehicles on the road with flood damage in their history.
Here is part of the problem. It’s legal to sell these vehicles with flood damage as long as it’s disclosed to the buyer. And many of these cars will wind up on auction sites like Insurance Auto Auction where they’ll be listed for cheap. Others will wind up on dealer lots, sold by individuals who don’t always follow the rules. Those are the ones buyers should be worried about.
Buyers have to know what to look for with these vehicles as many will look as if there’s nothing wrong. The main indicator of a flooded vehicle would be a bad smell, something sour or mildew. If you are unsure, a have an ASE certified mechanic do an inspection, they will charge you for the service but it could save you from a massive issue down the road.
If you have the skills to check further on your own, look at the carpeting, seats and interior for signs of damage. A big indicator of flood damage is electrical systems malfunctioning, look under the fuse box cover and if there is moisture, pass on this vehicle it could be potentially dangerous. With all the electronics in a car, the technology systems can prevent you from getting into an accident, and this puts you in more danger.
Checking the engine and engine oil is another indicator as water could still be in the oil pan. As many people know, water and oil don’t mix. If you pull the dipstick, if there is one, and the oil looks murky and melted ice cream-like, that’s cause for concern. The best thing anyone can do is check vehicle history reports before buying. If a private seller is offering a vehicle, I highly suggest you are sure to get a it professionally inspected. If the seller is adamant that it doesn’t need an inspection, they’re probably hiding something.
If you find yourself tempted by the low low price of a flood-damaged vehicle, buyer beware. Protect yourself and your investment. Cosmetically these cars might look great, but if you don’t know what to look for, it’s nearly impossible to tell they are literally rotting from the inside out.
Another major factor to know. Water damage also voids all the warranties on that vehicle so you will be on your own for any repairs.
There is so much more to discuss on this, put your comments below and let’s start the conversation.
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.
