Beware of Flood-Damaged Cars When Buying a Used Auto

People looking to buy a used car should watch out for cars that were damaged in recent storms, like Hurricane Katrina.  Dishonest sellers do not tell buyers that the cars were damaged.

Many of the cars that were damaged are expected to be junked. Insurance companies frequently write off a car as a total loss if water seeped into the auto’s electrical system.

Dishonest sellers buy the scrap cars from salvage yards. In some cases, the cars are cleaned up and sold in states far from where the storms hit.

Some sellers may hide information

The state of Wisconsin is warning buyers to be aware that sellers may hide information about damaged cars. Wisconsin law requires licensed dealers to clearly label a car that was damaged by flooding. The information must be shown in two places.

The state Department of Transportation says the label on the vehicle’s rear-side window must show if there was damage. Any advertising must also state that the vehicle was damaged.

Sellers who are not licensed in Wisconsin do not have to tell buyers about storm damage. Anyone who sells five or more cars in a year is supposed to get a license in Wisconsin.

The administrator of the state Division of Motor Vehicles has some advice for buyers. Lynne Judd says cars can be cleaned up so well that the storm damage can be hard to see.

Judd says vehicles that look clean may not have been checked by a professional for mechanical and electrical functions.

If there is any doubt about storm damage, it is important to have the car checked by a professional mechanic. Judd says it is a good idea to have any used car checked over.

Musty smell may be sign of flood damage

Judd says signs of flood damage include a musty smell even if the car was cleaned well. The odor will return if the windows are rolled up and the car is left in the sun for a few hours.

Water spots on seats and carpets are signs of storm damage. Judd also warns buyers to look for dirt in tail lights. Silt around the air filter is another sign. She advises taking the filter out and tapping it lightly to look for silt.

Insulation under the hood is another indication. Insulation can become discolored by water. In other cases, the insulation is sometimes painted. Unless the insulation was replaced, there will be mud caked under it.

Other signs include brittle wiring and rust in expected places.

Water damage can cause problems with air bags, brakes and other important systems in cars. The cars may run well at first. But problems could show up weeks and months later.

About 570,000 cars were damaged in Hurricanes Katrina and Rita. The hurricanes caused most of their damage in Louisiana, Mississippi, Alabama and Texas. About half of the 570,000 cars could make their way back to the used car market.