BUYER BEWARE: CARS FLOODED BY HARVEY
Shoppers need to do their homework or they could end up stuck with a storm-wrecked ride
Hundreds of thousands of storm-damaged cars are poised to flood the used-vehicle market following Hurricane Harvey, and now Hurricane Irma is threatening to place even more consumers at risk of unknowingly buying a wrecked ride.
With as many as 1 million vehicles in Texas damaged or destroyed by Harvey’s furious floods — and Irma barreling toward Florida — analysts are warning Americans to check vehicle history reports and inspect used cars carefully before buying.
Vehicle history report company Carfax said about half of cars damaged by floods return to the road.
That places hundreds of thousands of Americans at risk of buying what the auto industry considers “flood cars,” a common problem after Hurricane Katrina and other storms.
“They’re getting duped out of thousands of dollars with a vehicle that’s literally rotting from the inside out,” Carfax spokesman Christopher Basso said.
CarFax estimates that there are about 325,000 flood-damaged cars on the road today from past storms, spread among all states.
Three common ways this happens:
Auctions. After an insurance company slaps a flood or salvage title on a vehicle, it gets auctioned off legally and then
“They’re getting duped out of thousands of dollars with a vehicle that’s literally rotting from the inside out.”
Carfax spokesman Christopher Basso
salvaged and cleaned by a buyer who puts it back up for sale to consumers.
“It happens all the time — anytime there’s a flood,” Autotrader .com analyst Michelle Krebs said.
For sale by owner. Owners with minimal insurance coverage rigorously scrub the vehicle themselves, possibly replacing carpet or upholstery, and sell it to an unsuspecting buyer. Sellers often move the vehicles to other states to escape scrutiny, putting anyone at risk of buying a damaged ride.
Forged or bogus docu
mentation. Sellers tamper with title records or other documentation to trick buyers into believing the cars are in good condition.
Hurricane Harvey victims are especially at risk of buying flood cars because they need to find transportation immediately if they don’t have access to free rental cars through insurance.
But AAA car-buying expert David Bennett advises consumers to approach the process with caution.
“Try not to rush into a decision, and make sure you’re going to be buying a car that fits your needs,” he said.