Don’t Buy a Flooded Car: A Guide to Avoid Damaged Vehicles

How can you avoid buying a flooded car? Shutterstock

There is more than one set of flood victims when a storm strikes. The repercussions can spread across the nation. This is particularly true of flooded cars. When cars are flood-damaged, they’re not necessarily junked. One of them could end up in your garage.

How can this happen? According to Carfax, there are currently 454,000 flooded cars on the road, and many owners don’t know it. But they do know the engine problems they’re dealing with. How can you avoid buying a flood car?

Flood Cars Titled as ‘Salvage’ and Resold

Usually, an insurance company declares a flood-damaged car a total loss. These cars are then sold at salvage auctions to junkyards and vehicle rebuilders. However, reselling the vehicle to the public is legal if the damage is disclosed in the title.

Salvage titles are often plainly marked with the words “salvage” or “flood,” which is known as branding. But in some areas, the title merely has a number code or obscure letter.

A salvage title car can’t be registered again until necessary repairs are made and it’s inspected. Once the vehicle passes inspection, it’s issued a new title, “rebuilt,” and can be registered for consumer use.

However, an investigation by Consumer Reports found that some flood-damaged vehicles entered the market with clean titles.

Beware Buying a Used Car

Check the National Motor Vehicle Title Information System (NMVTIS) when buying a used car. This site directs you to government-approved vehicle history reports. The NMVTIS is cracking down on the practice of “title washing.” Title washing often happens when cars are flooded or stolen. They receive clean titles in states with lax regulations.

Another place you can check is the National Insurance Crime Bureau’s (NICB) VIN check. It will show if a participating NICB insurer has designated the car as salvage.

For a comprehensive history, order a Carfax report. Besides the title history, you'll also see if the car is properly maintained or has been in an accident.

But what if the original flooded vehicle owner didn’t have comprehensive insurance at the time of the flooding? Then, an insurance company wouldn’t have declared the vehicle a total loss. The title may remain clean. This is also the case if the repair bill didn’t exceed a certain amount. Unfortunately, only a few states offer a “flood” title.

Titles or vehicle history reports are not perfect and don’t guarantee a problem-free vehicle. You should do a detailed inspection of the car.

This is especially true if you know a car has come from a storm-prone state.

Signs a Car Has Been in a Flood

When inspecting a car for flood damage, start with the sniff test. Does the car have a musty odor and smell like an old basement? The opposite could be true as well. If the car is overly scented, like a perfume factory, the seller might be trying to cover up something.

Any new upholstery in an older vehicle is suspect. Most people aren’t going to replace the upholstery in an old car, and it’s an indication that something happened.

Another sign is the wires. Check the wiring under the dash. They should be flexible. If they feel brittle, the vehicle has been in a flood. And while you’re at it, check inside the seatbelt retractors. Pull the seat belt all the way out, and then inspect it for moisture, mildew, and grime. This is an area that sellers fail to clean.

During a flood, mud or silt builds up in odd places. Look in the glove box. Does it have a slight film or feel grimy and gritty? Other important places to look for grime are:

• alternator crevices
• starter motor
• power steering pump
• under the spare tire

Start the car and turn the radio on to check the door speakers. If they’re crackly sounding, the car may have been in a flood. A flood may not have caused the problem, but if there are other telltale signs, then take note. While you’re testing the door speakers, make it a point to check the door for water lines. They may be faint, so look carefully.

Finally, look under the hood for signs of oxidation. You'll need to pull back electrical and mechanical connections. But indicators of a flood are signs of rust or green patina on copper.

Watch Your Timing

Beware of buying a used car after a storm. Some states don’t check for an existing salvage title before they issue a new one.

A fraudulent seller will obtain a clean title and then sell the car to you. This usually happens in the months following a major storm or flooding.

Trust Your Instincts

Most people want a deal when buying a car. But make sure you go to a reputable dealer or seller. If the price is too good and way below Kelley Blue Book, take a harder look.

Never buy a car without a title. The title usually tells you if it’s salvage.

Not Worth Buying a Flood Car

If you buy a flood-damaged car, you risk buying a car with major engine problems. Or it could just have little things going wrong and be unreliable.

Consider the insurability risk. Your insurance company will probably not offer you a comprehensive or collision policy on a car that has a salvage title. You’ll only have liability insurance.

Do your due diligence and avoid buying a flood car.

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