Don't Get Soaked by Hurricane Sandy

Hurricane Sandy blew through last month wreaking a special kind of damage.  As the East coast recovers and we help where we can (donate here or here to get money and resources to victims), it's important to keep an eye on the used car market, especially if you're in the market for a used car.  A recent NBC News report stated that Hurricane Sandy may have totaled as many as a quarter of a million cars.

Photo credit: CNN.com

Flooding a car is much like dropping your cell phone in the bathtub.  It ruins the engine, gauges and especially the electrical components of your car.  It can fill the interior of the car with mildew and mold while simultaneously rusting out the bottom.  Often, however, it takes a few months for the real damage to take effect on the car, giving criminals a window of opportunity in returning scrapped cars to the market. 

So how do flood cars get back in the market?  Unlike a cell phone, it is incredibly difficult to dry out a car after it's been flooded.  So flood cars are automatically totaled by insurance companies.  The car is then taken by the insurance company and sent to an auction where it will be sold for parts or scrap metal.  Unfortunately, there are always a few unscrupulous buyers--owners of chop shops--who are there to buy vehicles at lowest possible prices and return them to the market.

Buy moving the vehicle over a few states, these criminals can "wash" the title eliminating the "totaled" notation from it and presenting to potential buyers a clean-looking title.

If you're in the market for a used car, use these tips to make sure you don't get soaked.

1. Watch for smells.  Flood cars smell molly and old.  Also watch for overly perfumed cars, whose owners may be trying to cover the telltale bad smells.

2. Brand new carpet.  A four-year-old car should have four-year-old carpet.  If the carpet is brand new, it may be a flood car.

3. Check for water signs.  Lines in the trunk or interior of the car or fogging in head or tail lights means that you have a car that's been flooded.  Be wary of dirt or build-up in unusual places.

4. Look for rust.  Check the undercarriage, under the carpet, as well as behind the gas and brake pedals for rust.  A lot of rust on a new-ish used car is a very bad sign.

5. Check the VIN.  At the National Insurance Crime Bureau's website you can check the VIN, at no cost, to see if the car has ever been totaled by an insurance company.

6. Check CarFax. Get a vehicle history report from CarFax.  Ken Garff Honda of Orem provides a free CarFax history on every used car.  You can print it off of the Honda of Orem website or come into the dealership where a salesperson will print one for you and walk you through the vehicle history.

If you are in the market for a used car in the next 3-6 months, it is critically important to go through every step in checking for flood damage before you buy.