Buying or selling a car after a disaster

Additional car-buying precautions

Keep in mind that even if a vehicle looks fine and seems to be working well at first, water damage may not show up for months after and can continue to cause problems until the car meets its end. This is why it’s so important to take as many precautions as possible to protect yourself from buying a damaged, title-washed vehicle.

• Get a Carfax vehicle history report or order an independent used-car inspection.
• Take it for a test drive. As Carfax explains, “As with the inspection process, test driving a potentially flood-damaged used car requires a little extra effort as compared with the typical pre-owned vehicle […] It’s also particularly important to concentrate on the transmission, steering system and brakes with these vehicles.”
• Commission an inspection by a trustworthy, certified mechanic. Ask the mechanic to check for possible water damage or hidden damage.

• Check the title. The seller should be able to provide you the car’s title, which will list the VIN and should offer other clues, such as the previous owner’s address.
• Know the difference between titles. The Federal Trade Commission warns, “Understand the difference between a ‘salvage title’ and a ‘flood title. A ‘salvage title’ means the car was declared a total loss by an insurance company because of a serious accident or some other problem. A ‘flood title’ means the car has damage from sitting in water deep enough to fill the engine compartment. The title status is part of a vehicle history report. Either way, every used car needs an inspection and records before you buy, but with salvage- and flood-titled cars, you need to be extra careful.”

• Pay careful attention to the vehicle’s paper trail. Cars Direct explains, “A telltale sign of [title-washing] will be multiple registrations in different states. This may allow the owner to sneak through loopholes that allow them to omit certain unsavory parts of a car’s history.”
• Use Carfax’s Free Flood Damage Check. This is in addition to the Carfax Vehicle History Report. The Flood Check shows the possibility of flood damage based on the history of the area and the registered address of the vehicle, as well as the vehicle’s reported flood history. 

• Watch for a delay. If you’re considering purchasing a vehicle from a flood-impacted area, keep in mind that there may be a delay before the vehicle’s flood history appears on traditional consumer reporting sites.
• Buy from a reputable seller. You can protect yourself from buying a vehicle from a dealer with a solid reputation. Carfax suggests, “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.” 

• Is the deal too good to be true? In most sales of damaged and title-washed vehicles, the price is “too good to be true.” If the vehicle is deeply discounted, it’s likely because there’s something wrong with it.
• If you suspect fraud, report it. Your vigilance and reporting any suspicions can prevent someone else from suffering the headache of purchasing a vehicle with hidden damage from a sneaky dealer. 

Even with the possibility of hidden damage, some individuals may choose to purchase a vehicle from a salvage auction. If you consider this option, proceed with extreme caution. As The New York Times explains, “Buyers who go to a salvage auction can be certain that a vehicle there has been the victim of some serious misfortune. For this reason, it’s wiser to purchase a new vehicle from a reputable seller, if possible.