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Beware of Flood-Damaged Cars


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Special To The Auto Channel
From Auto Trader
Story By Russ Heaps

Hurricanes often create a tsunami of flood cars
  • Unscrupulous sellers will try to sell them to unsuspecting buyers
  • Obtain an online car history of any suspicious used car

    • If there's one thing we can count on after a devastating super storm, it's that the used-car market will be flooded with water-damaged cars.

    Scammers probably begin dumping affected cars into the used-car inventory within days of a storm's landfall.

    Used-vehicle shoppers searching within a few hundred miles of the storm should be particularly wary, but it's not just shoppers in the affected regions who should increase their vigilance. Savvy sellers will move damaged vehicles to unaffected states, where they will retitle the cars before foisting them on unsuspecting buyers. Like gas vapor seeping into a room, storm-damaged flood cars will find their way into every corner of the country.

    Flood damage can ruin a vehicle in any number of ways, from eating away the electronics wiring to seizing up mechanical systems, and the damage may not reveal itself for months or even years. Corrosion and rust are insidious, often eating away at sheet metal and components from the inside out.

    Obviously, not every used car coming out of storm-affected areas will be damaged, but many that are won't show outward signs of water trauma.

    Buyer Beware

    There are some precautions a used-car shopper can take to minimize, if not eliminate, the chances of buying one of these future rust buckets.

    Depending on whether the seller is a licensed dealer or a private owner, duped buyers may have some legal recourse if, after purchase, their used car turns out to be flood damaged, but that's not guaranteed. Avoiding a flood-damaged vehicle ultimately falls to the used-car shopper, and the most effective way to avoid being scammed is to be alert to the danger and look for a few telltale signs.

    Aggressively inspecting any used vehicle being considered for purchase is the most effective prescription for dodging one with terminal water damage.

    This is best accomplished by a qualified mechanic; however, if a mechanic isn't available or you want to avoid the expense of a professional, you may be able to identify a problem vehicle yourself with a preemptive inspection.

    What to Look For

    Although you won't be able to peek into every nook and cranny, there are some areas where obvious signs of damage lurk. Here are a few places to inspect and what to look for:

    • Check under the vehicle's carpets or floor covering for mud or rust, and don't forget the trunk.
    • Give the underside of the carpets a sniff test. Do they smell like mildew?
    • Mud and debris collect in hard-to-clean spaces, such as under the hood and in the trunk.
    • Rust on the heads of any exposed screws under the hood, around the doors or in the trunk indicates exposure to excess moisture.
    • Mud and debris on the underside of panels and brackets is another good sign the car has been under water.

    If you suspect you are looking at a flood-damaged vehicle, the smart move is to just walk away. If the deal seems too good to be true, it probably is. The alternative is to spring for the cost of having a mechanic give it the once over.

    One More Thing

    Autotrader always recommends obtaining the history of every used car being considered. A number of online sites, such as CARFAX.com and AutoCheck.com, provide such reports for a nominal cost. Pay special attention to the vehicle's title history. CARFAX has a link to a dedicated "flood damage" site (https://www.carfax.com/press/resources/flooded-cars) that can be effective in rooting out flood-damaged cars.

    What It Means to You

    Buying a used car is a big investment. A little vigilance up front about flood-damaged vehicles can save you from a big headache down the road.

    Protecting Your Current Vehicle

    If a storm is headed your way, there are a few things you can do to protect your existing vehicle:

    • Make sure you have a duplicate copy of your car's registration in a safe place
    • Have your lender's phone number handy -- in the event of damage to your vehicle, they may allow you to skip a few payments
    • Along those lines, have your insurance provider's phone number accessible, as well as a copy of your insurance card
    • Write down your vehicle's VIN number
    • Take a photo of your car so that you can compare the before and after in case there's a question of any damage

      • Telltale Signs of Flooding

      • A musty odor in the interior, which can sometimes be covered with a strong air-freshener
      • Upholstery or carpeting which is loose, new, stained or doesn’t match
      • Damp carpets
      • Rust around doors, under the dashboard, on the pedals or inside the hood and trunk latches
      • Mud or silt in the glove compartment or under the seats
      • Brittle wires under the dashboard
      • Fog or moisture beads in the interior lights, exterior lights or instrument panel

      Flood Damage Checklist

      • Turn on the ignition and check all instrument panel lights illuminate
      • Test the interior and exterior lights, air conditioning, windshield wipers, radio, turn signals and heater repeatedly
      • View the full CARFAX Vehicle History Report to check for reported flood damage or signs of salvage title fraud
      • Get the car checked thoroughly by a trusted mechanic 

      How to Avoid Flood Damaged Cars

      In more ways than one, water is your car’s best friend. The cooling system uses the stuff to regulate engine temperatures and regular use of a soapy bucket of H20 and a sponge can go a long way toward keeping your pride and joy looking tip-top.

      Unfortunately, water can also be your vehicles worst enemy. Damaging flood waters can render a valuable automobile worthless in a matter of seconds.

      More often than not, flood damaged cars are reported to insurance agencies and through an assessment process the buyer receives compensation to cover losses. While many flooded vehicles are then sent to the auto recycler for dismantling, other vehicles are branded by state agencies as flood damaged and a salvage title is assigned. Once identified, flood damaged cars can once again enter the sales market, showing up on dealer lots or in driveways with for sale signs on the windshield. The truth is, refurbished flood damaged vehicles can be difficult to identify apart from trusted documentation.

      While the majority of those refurbished vehicles are sold with full disclosure of the damage, there are also unscrupulous companies and individuals who will attempt to profit at the expense of others by withholding information or intentionally hiding a car’s history through a process called “title washing.” Whether they simply leave information off the table or deliberately work to erase the car’s history, they will attempt to sell the vehicle as if it never went for a damaging swim.

      While there is no absolute fail-proof technique to avoid a financially devastating purchase of a misrepresented flood vehicle, steps can be taken to assure that the car you are buying lives up to all the seller’s promises and hype.

      Find a Reputable Seller

      You’ve done hours of research online, consulted friends and family, window shopped at parking lots and in traffic, and settled on a particular model or two. The next important step you need to take is finding a reputable seller.

      Well-established dealerships are not in business for short term financial profit. If your community has a family-owned dealer that has been in the same location for three decades, there is a good chance they aren’t going to risk everything to make a few quick dollars selling misrepresented flood vehicles. Most great dealerships will add the extra security of providing you with a CARFAX Vehicle History Report that clearly documents a detailed history of the vehicle. This high level of transparency along with recommendations from other customers can go a long way in assuring that a potential vehicle purchase is clear of hidden damage.

      Ask good questions, too. Specifically, inquire if the vehicle was ever damaged in a flood. Get your answers in writing and if the seller is unwilling to provide clear evidence, move on. There are plenty of other dealers who are more than willing to go the extra mile to guarantee that you aren’t buying a vehicle with a salvage title.

      The same basic rules work when buying from an individual. Once again, obtaining a vehicle history report goes a long way in confirming that the car you are purchasing is clear of flood damage. Inspecting the title can also help. Check for a stamp that reads “flood” or “salvage.”

      Inspect the Interior

      Once you’ve determined from the seller that the vehicle is clear of flood damage, take a little time to confirm the reports by inspecting the car firsthand. The following steps are simple to work through and will provide yet another level of confidence before you hand over your cash.

      Thoroughly inspecting for flood damage has a secondary benefit of offering a systematic approach for examining the vehicle for other potential deal-breaking, non-flood related issues.

      The easiest flood damage test is also the most telling. Close all the windows and doors let the car sit for a few minutes and then crack open the door a take a good sniff. Mildew and mold have a distinct smell, and even trace amounts of either one is pretty apparent if the car is sealed. If you have a friend or family member who regularly complains about smells that everyone else seems oblivious to, bring them along. The “Do you smell that?” question they frequently ask might save you thousands of dollars.

      You should also beware of cars that smell too good, since a spray-on fabric freshener can mask odors. If the 5-year-old minivan smells like “fresh mountain rain” make sure that it really isn’t actually flood waters that the scent is masking.

      If the car passes the sniff test it is time to take off the gloves and give the car’s interior a quick pat down to reveal potentially damaging hidden issues. Damp spots under the seats are of particular interest; if you can lift the carpet and inspect the padding, even better. While it is easy to dry the carpet’s surface, foam or jute padding can retain moisture for years.

      During your inspection look for previous water damage evidence by blotchy water stains. Just remember, stains do not necessarily mean the vehicle has been in a flood. Any parent of a toddler can attest to that.

      Don’t forget to check the trunk, either. Take out the spare tire and check for moisture or sitting water. While there is a slight chance of a bad seal around the trunk lid, water or debris found in the trunk area is a good sign that your potential purchase went for a swim.

      As you are working through the car looking for moisture, check for signs of corrosion. Unfinished metal surfaces, like the springs hidden underneath many vehicle seats, will corrode even if the car was only under water for a short time. Look at the ends of exposed bolts. Are they shiny and new or do they look like they’ve been sitting outside? Door jambs and any other areas where water can sit will be especially telling. Bubbling of the paint in areas not exposed to the elements should be taken seriously; even if the car wasn’t in a flood you could be looking at extensive rust damage that may cause a vehicle to fail inspections and be dangerous to drive.

      Take a good look at the vehicle’s instrument panel. Is there trapped moisture behind the plastic lenses? Check the glove box for moisture and debris. Grab a flashlight and look in the console and under the dashboard.

      The car smells great, seems rust free and is dry as a bone, now what? While there is a good chance that the vehicle is just fine, don’t rule out the chance that parts or all of the carpet or interior have been replaced to hide damage. If a section of the carpet or upholstery is a different shade or has less wear than the surrounding fabric, there may be a reasonable explanation, but it may be the sign of undisclosed refurbishment. Once again, cars get dirty and worn and a dealer looking for top profits may replace worn carpet or seating surfaces, but they will be proud of this fact and disclose it quickly and earnestly. What we are looking for is inconsistencies and exposing potential secrets or unknowns.

      Check Under the Hood

      The vehicle’s interior is the best place to start, but tell-tale signs of water damage can also reside under the hood. Look for debris that may have washed in and deposited itself in the engine bay’s nooks and crannies. Anyone who enjoys a shade tree covering their driveway knows that leaves often sneak into the oddest places, but finding unexplained leaves, silt and sand inside the spark plug wire cavities is concerning and likely the result of flood waters.

      While you are under the hood check the engine oil by pulling the dipstick. When oil mixes with even a small amount of water it becomes murky, like a melted chocolate milkshake. If the oil looks a little suspicious start the car and check it again, sometimes the water will settle above the oil if the car has been sitting for a while and turning the engine over will whip it all back up into a tell-tale mess. It is important to note that any water in the oil is a bad sign. Even if the car has not been in a flood, water in the engine oil may be a sign of major mechanical damage. Either way, if the oil looks like it is dripping with melted ice cream, you should move on. If the vehicle is equipped with a transmission dip stick, check that too.

      Take a few minutes and inspect the paper air filter. Most cars only require a few clips to be undone or some screws to be removed to expose the filter. Once paper is wet it never looks the same. Think of it as that little strip in your cellphone that turns pink if you drop it in a puddle. If the filter shows signs of water stains you will want to keep looking for another vehicle.

      After you’ve inspected the interior and under the hood, take a walk around the vehicle and look for signs of moisture in the light fixtures. While it may well be a leaking seal, fogged-up lights are a good sign that the vehicle was submerged under water. Get close and inspect for tiny drilled holes that may have been added to drain flood water.

      Take a Test Drive

      Any vehicle purchase requires a lengthy test drive. If you are seriously considering buying a vehicle and you don’t drive it, you are only asking for trouble. Obviously there are exceptions, non-running vintage vehicles for instance, but if you are purchasing a daily driver you need to drive it before making a purchase. A part of your test drive should include testing the vehicle’s electrical systems, as they are prone to water damage.

      When you start the car do you notice any smoke or odd smells? Listen for irregular noises, such as strained warning buzzers. Try every accessory to see if it works properly, including turn signals, windshield wipers, headlight switches and high beams. If you can switch it on or off, you should. Does everything work properly? Turn on the vehicle’s entertainment system and listen to the audio. Like the air filter, paper speaker cones don’t take to water very well. If the audio is distorted or the system doesn’t work, it could be the sign that the car was once being used as a boat.

      Ask an Expert

      It never hurts to get a second opinion, and there are reputable experts available to inspect your potential vehicle purchase for a small fee. Often, they can spot water damage in minutes, but if the car is particularly suspect they may remove a door panel or check hidden electrical or mechanical components to see if there is evidence that the original refurbishment might have missed.

      Bringing your car to a trusted mechanic is a good idea regardless. The nominal upfront costs will pale in comparison to the financial devastation that can result in buying a car that is worth less money than you paid or worse, is dangerous to drive.