Buyers Beware: JeffCars.com's Tips To Avoid Buying A Flood-Damaged Vehicle

Thousands of vehicles are expected to be disbursed around the country and could possibly appear as a ready to sell used vehicle, when in fact, they could be damaged goods.

Flood-damaged vehicles for the most part are worth about 40 percent less than the actual book value, the amount a non-damaged vehicle usually sells for on the used car market. 

So, to ensure that you’re not left holding the bag, paying too much for a flood-damaged vehicle or to literally steer clear of a flood-damaged vehicle, here are several tips to help navigate the inspection process. In fact, this process is useful for any used car purchase, not just flood-damaged vehicles. 

ABC News Investigation Reveals The Ugly Side Of Insurance And Flood Damaged Vehicles

Before buying a used vehicle, take a moment to check out this ABC Nightline News story - detailing how flood damaged vehicles end up back in the system and on dealer lots to unsuspecting buyers. 

Buyers Beware: Hurricane Sandy Whips Up A Flood of Used Vehicles

 

Although Hurricane Sandy affected the Northeast section of the country, remnants from the historic storm is expected to be felt soon -- hundreds to thousands of miles away from Ground Zero (or the center of impact) to used car lots around the county. It is estimated that nearly 100,000 vehicles were affected by the storm. With that being the case, literally a flood of used cars that were underwater at the height of the horrific storm will soon be cleaned-up and disbursed to used cars lots around the country, just as they have been with every major storm that has occurred within recent history.

Buyers Beware: Flood-Damaged Vehicles Are Expected to Resurface at Used Car Lots

It has been six years since Hurricanes Katrina and Rita swept through parts of Louisiana and Texas, causing  thousands of vehicles affected by the floods to appear at dealer lots all around the country. So with the recent floods from the Northeast and Midwest we expect that a lot of flood-damaged vehicle will end up around the country again.

Unlike non-flood damaged vehicles, flood damaged vehicles are typically worth 40% to 60% less than non-flood damaged vehicles.

Just as we learned after the financial markets nearly collapsed -- that there had been no government regulations, which lead to the current economic climate, the same is also true for the used car market, too, as it relates to the industry not being regulated. By this, we mean, still today there isn't a national unified system that has been put in place from state-to-state for used car buyers (or state officials) to track flood damaged or, for that matter, stolen vehicles.

Conversely, like a mid-day traffic jam, political wranglings with the insurance companies and a number of state governments (and legislatures) have placed used car buyers at the crossroads, while the American public continues to wait for Congress to pass a bill.

So in the midst of awaiting for Congress to implement a unified national vehicle data base, consumers must take every necessary precaution to minimize the risk of purchasing a flood damaged vehicle. In order to do this, we have gathered some tips we provided to The Washington Post and to a number of other media sources over the past few years:

Be sure and check the history of the vehicle. If you have to pay for a report, do it. With that history in hand you'll find out such things as whether the car was in a flood or sustained major damage in an accident. You can check for odometer fraud. And we also that you invest a vehicle history report like AutoCheck.com. Investing in this report could make the difference between buy a flood-damaged vehicle or steering clear of one. (AutoCheck is a more comprehensive report than CarFax.)

As a second line of defense, have a trained, certified mechanic inspect the vehicle.
Take the car for a test drive. Drive it on the highway so you can see how it reacts at high speeds. Drive it in stop-and-go traffic.

Check for water damage yourself. For example, if a car has a sunroof, look for a water ring around the opening. Pay particular attention if the carpet has been shampooed. If you notice an abnormal odor, this may be a sign of flood damage. If you smell mold, hit the road and don't look back. Look for rusty bolts and screws. We still recommend that a professional inspects the vehicle, before you seal the deal.

The Great Flood: Steps to Protect Yourself From Owning a Flood-Vehicle

It has been four years since Hurricanes Katrina and Rita swept through parts of Louisiana and Texas, uprooting the lives and homes of thousands of Americans. More specifically, thousands of vehicles were also affected by the floods, too. In fact, many of the flood damaged vehicles, like the folks who were affected, were shipped out of the area and scattered around the U. S.

Moreover, many of the muddy vehicles landed at used car lots, after they had been cleaned up and were resold as non-flood damaged units to unsuspecting customers. Unlike non-flood damaged vehicles, flood damaged vehicles are typically worth 40% to 60% less than non-flood damaged vehicles.

Just as we learned late last year that our financial markets have been unregulated for years, causing the current recession, the same is also true for used car market, too, as it relates to industry not being regulated. By this, we mean, still today there isn't a national unified system that has been put in place from state-to-state for used car buyers (or state officials) to track flood damaged or, for that matter, stolen vehicles.

Conversely, like a mid-day traffic jam, political wranglings with the insurance companies, a number of state governments and legislatures have placed used car buyers at the crossroads, while the American public continues to wait for Congress to pass a bill.

While consumers are awaiting for Congress to implement a unified national vehicle data base, they can minimize the risk of purchasing a flood damaged vehicle by taking note of the tips we provided to The Washington Post and other media sources several years ago.

In addition to using the tips featured in The Washington Post, click here to peruse the government database to make sure sure you're not buying a stolen or re-titled vehicle.