Thousands of cars are damaged or destroyed by floods each year, but don’t assume all those vehicles end up in a junkyard. Some are repaired and resold in other parts of the country without the buyer ever being aware of the car’s waterlogged history. In fact, 378,000 flooded cars were back on the roads in 2021.
It’s important to be vigilant when buying a used car, even if you don’t live near a traditional storm area. Flood-damaged cars are often transported well beyond their original region where water can ruin electronics, lubricants, and mechanical systems.
Often, when an insurance company declares a flood-damaged car a total loss, that information isn’t communicated to potential buyers. Once a flood car is totaled, it should get a new “salvage” title. These salvage titled cars can’t be registered until necessary repairs are made and the vehicle is re-inspected by officials. Then, the vehicle is given a “rebuilt” title, which allows it to be registered for consumer use. However, some flood-damaged vehicles reappear with a clean title. Be especially wary of any used car being offered with a “lost” title or with only a bill of sale.
To help protect yourself from purchasing a flood-damaged car, one useful online tool is the National Motor Vehicle Title Information System, which helps consumers run background checks. This system aims to crack down on the practice of “title washing,” this occurs when cars that have been totaled (or stolen) get clean new titles in states with lax regulations. Other great resources to help protect against purchasing a flood-damaged vehicle include:
CarFax.com for a free “Flood Check” and flood damage checklist. These checks show the “possibility of flood damage” based on area history and the registered address for the car.
For a basic check, the National Insurance Crime Bureau offers VINCheck, a free service that searches vehicle identification numbers.
Learn about the challenges of buying a used car with a salvage title, courtesy of TrueCar Advisor.
Looking to purchase a reliable used car? NIHFCU’s car-buying service powered by TrueCar can help you control your car-buying journey and find a great rate. It also provides vehicle information that may be useful before your decision to buy.
Resource:
Consumers Report
