Buyer Beware:
Tidal Wave of Flood cars

Steer Clear of Flood Cars

You’ve seen them on TV---hundreds of thousands of pickup trucks, minivans, SUVs, stationwagons, and sedans---submerged in salty, contaminated floodwaters. Cars that have swum with the fishes. Cars that are headed to new and used car lots near you.

Even if you live in Maine, Arizona, California, or Iowa, do you have to be on guard against flood cars? The answer is YES.

Unscrupulous auto dealers send buyers to auctions in states where flood cars abound, with orders to buy them at rock-bottom prices. Then they are cleaned, polished, and transported onto car lots nationwide. There, they are sold at the going rate—with no disclosure they will gradually rot from the inside out. Brand spanking new “flood” cars purchased at auction for $2,000--$6,000 can be disguised as perfectly OK cars and resold for $16,000--$35,000 or more.

After Hurricane Hugo hit the east coast, Iowa’s attorney general prosecuted a car dealer who was caught trafficking in flood cars. As soon as they turned their backs, he was back at it again. It was just too profitable to resist.

What’s wrong with a flood car? The works. Today’s cars have sophisticated electronics that control just about everything. Brakes. Engine. Steering. Air bags. Salt water causes those systems to corrode. If the car is in a severe crash, the air bags may inflate too soon, too late, or not at all. The electrical systems are hopelessly compromised and unreliable.

Despite attempts to clean the seats and upholstery, mold and mildew will persist. Flood cars can cause serious health problems, particularly for people with asthma, other lung problems, or allergies. The car’s body, if it is metal, will be prone to rust.

To make matters worse, manufacturers and dealers refuse to honor the warranties on flood cars. Even if you buy the car as “new,” supposedly with a “factory warranty.” Manufacturers have access to a database that tells them the vehicle was in a flood. If you try to get them to fix the problems under the warranty, they will turn you down. Flood damage voids the warranty. All repairs will be out of your own pocket.

Consumers who buy “new” or “nearly new” flood cars are in for a rude awakening when they seek repairs under the factory warranty. One consumer in Indiana who was turned down by DaimlerChrysler complained to the Attorney General’s office. The Attorney General discovered that State Farm insurance company had repurchased thousands of cars from their original owners as a total loss, but fraudulently resold them without branding their titles “salvage”---a clear violation of Indiana law.

Companies that offer extended service contracts also deny coverage for “flood” cars. A consumer who buys a used car “flood” car and also pays $4,000 for an extended service contract will discover it was a total waste of money. The service contract will be rendered worthless, due to flood damage.