September 19, 2008

THIS IS A NEWS RELEASE FROM THE BETTER BUSINESS BUREAU:

BBB Warns Car Shoppers: Don't Get Sunk By Purchasing a Flood Damaged Vehicle 

Austin, Texas, September 19, 2008 - As Texas residents recover from Hurricane Ike, BBB wants to warn car shoppers about the significant number of flood damaged vehicles that may be making the rounds.

"After every major flood, unscrupulous sellers try to pawn off flooded vehicles, and you may not even know you've bought one," says Carrie A. Hurt, President and CEO of BBB Serving Central, Coastal and Southwest Texas. "They clean them up and sell these vehicles as if they never had any damage to them."

The insurance industry estimates as many as 100,000 vehicles may have been flood damaged during Hurricane Ike. BBB wants to help prevent these damaged vehicles from being sold to unsuspecting buyers.

"There is no guarantee that vehicle damage will be reported, and the best way for consumers to protect themselves is by checking for signs of water damage," adds Hurt.

How to spot potential flood damage in a vehicle:

Search under the dashboard with a flashlight for mud, grit, rust or mold.

Search for mud and grit in the engine compartment, wires, alternator, starter motor and power steering pump crevices.

Inspect the undercarriage for rust and flaking.

Be aware of odors, both musty and recently shampooed.

More warning signs:
The vehicle's title history shows it was titled several times over a short period.

No vehicle title exists.

The title is in an insurance company's name.

The vehicle was last registered in a flood-affected area.

BBB offers these additional tips:
Ask to see the title and look for the word "salvage." Car titles are supposed to reveal when a car has been been "salvaged," meaning it has suffered significant damage. But sometimes they don't. They may have been sold outright individual to individual and there may be no history on record that the vehicle has been through water damage.

Be wary of "curbstone sales" on street corners. These are vehicles for sale by their owners that are parked near curbs at high traffic locations.

You can buy a vehicle's history for $20-$25 from www.carfax.com or www.autocheck.com.
Hire a professional mechanic to inspect the car for about $50-$100. That can save you a lot of money in the long run on repairs.

Another tool that can help consumers detect vehicles that have been flood damaged is TxDOT's flood damaged motor vehicle database, which can be accessed at www.txdot.gov.