USED CAR BUYERS BEWARE
As with any major storm, Hurricane Harvey has destroyed thousands of vehicles. Although they may seem to operate normally, eventually most flood damaged vehicles deteriorate and develop rust, mold, engine and electrical problems, costing thousands of dollars to repair, if possible. Unfortunately, some of those flood damaged vehicles will make their way to the used car market and, due to the way some states title vehicles, the title of the vehicle may not reflect it was flood damaged.
This can happen in a few ways. If the vehicle did not have coverage for flood damage, the owners can have the vehicle thoroughly cleaned, leaving only clues a professional may detect. The vehicle is then transferred to unsuspecting buyer, and it enters the market. Also, unscrupulous people and businesses can buy flood damaged vehicles from insurance companies as salvage vehicles, with a notation on the title indicating its salvage. However, some states don't require such a notation,and once purchased by these people, they then title it in one of those states, remove the notation, and then sell it, or title it in another state with a clean title. Yes, this is fraud, but its better to not become a victim, than to try and recoup your losses.
If you're planning on buying a used car, there are a few things you can do to minimize your risk.
1. Before you buy the vehicle, ask to see the title, look to see if there's any notation of salvage on the title, write down the VIN# and compare it with the Vin# under the windshield, to confirm its the correct vehicle for that title;
2. Get a Carfax or similar report for the vehicle. But be aware that Carfax reports are not always accurate. Although sometimes from police departments and collision repair companies, usually the information on the reports are submitted by insurance companies who have paid for the damage to the vehicle; however, If the vehicle wasn't insured for flood damage, there wont be any notation.
3. Review the Carfax thoroughly! Look to see if it came from a State/area that experienced flooding within the last several years, or was registered in such a state, during the time they had a flood.
4. Have a qualified mechanic and collision center inspect the vehicle for signs of flood damage. Some of these places that clean flood cars do a great job, make it hard to detect.
5. Be especially leery of Buy Here-Pay Here dealers. Since you are not the owner of the vehicle, while you're making payments, the dealer retains the title, and you wont see it until you've paid the vehicle off, which is why you want to see the title, before you sign anything. These types of dealers know that most of the time their vehicles are repossessed before the person pays it off, so the likelihood of the customer seeing the title is slim. If you do decide to buy the vehicle, READ THE PAPERWORK THOROUGHLY, and make sure you get a copy of every document! Some dealers will slip a sentence in them that says you're acknowledging that the vehicle is a salvage vehicle.
6. Take all the paperwork home and review it before you decide on the purchase. Contrary to the urban legend, there is no 3 day right to return the vehicle once you've signed the papers, no matter what the salesman tells you. And if the salesman has made any promises to you, make sure they're included in the paperwork, and signed by the salesman/manager. If it not in the paperwork, they'll never admit they said it. With few exceptions, there's a reason car dealers/salespeople have such a bad reputation.
7. Like the old saying, If the deal seems too good to be true, it probably is, so protect yourself as best you can,and don't be pressured or intimidated into making any quick decisions about purchasing a vehicle.
If yo have any questions, don't hesitate to call my office.
All the Best!
Randy C. Redden
(856) 448-6200
As with any major storm, Hurricane Harvey has destroyed thousands of vehicles. Although they may seem to operate normally, eventually most flood damaged vehicles deteriorate and develop rust, mold, engine and electrical problems, costing thousands of dollars to repair, if possible. Unfortunately, some of those flood damaged vehicles will make their way to the used car market and, due to the way some states title vehicles, the title of the vehicle may not reflect it was flood damaged.
This can happen in a few ways. If the vehicle did not have coverage for flood damage, the owners can have the vehicle thoroughly cleaned, leaving only clues a professional may detect. The vehicle is then transferred to unsuspecting buyer, and it enters the market. Also, unscrupulous people and businesses can buy flood damaged vehicles from insurance companies as salvage vehicles, with a notation on the title indicating its salvage. However, some states don't require such a notation,and once purchased by these people, they then title it in one of those states, remove the notation, and then sell it, or title it in another state with a clean title. Yes, this is fraud, but its better to not become a victim, than to try and recoup your losses.
If you're planning on buying a used car, there are a few things you can do to minimize your risk.
1. Before you buy the vehicle, ask to see the title, look to see if there's any notation of salvage on the title, write down the VIN# and compare it with the Vin# under the windshield, to confirm its the correct vehicle for that title;
2. Get a Carfax or similar report for the vehicle. But be aware that Carfax reports are not always accurate. Although sometimes from police departments and collision repair companies, usually the information on the reports are submitted by insurance companies who have paid for the damage to the vehicle; however, If the vehicle wasn't insured for flood damage, there wont be any notation.
3. Review the Carfax thoroughly! Look to see if it came from a State/area that experienced flooding within the last several years, or was registered in such a state, during the time they had a flood.
4. Have a qualified mechanic and collision center inspect the vehicle for signs of flood damage. Some of these places that clean flood cars do a great job, make it hard to detect.
5. Be especially leery of Buy Here-Pay Here dealers. Since you are not the owner of the vehicle, while you're making payments, the dealer retains the title, and you wont see it until you've paid the vehicle off, which is why you want to see the title, before you sign anything. These types of dealers know that most of the time their vehicles are repossessed before the person pays it off, so the likelihood of the customer seeing the title is slim. If you do decide to buy the vehicle, READ THE PAPERWORK THOROUGHLY, and make sure you get a copy of every document! Some dealers will slip a sentence in them that says you're acknowledging that the vehicle is a salvage vehicle.
6. Take all the paperwork home and review it before you decide on the purchase. Contrary to the urban legend, there is no 3 day right to return the vehicle once you've signed the papers, no matter what the salesman tells you. And if the salesman has made any promises to you, make sure they're included in the paperwork, and signed by the salesman/manager. If it not in the paperwork, they'll never admit they said it. With few exceptions, there's a reason car dealers/salespeople have such a bad reputation.
7. Like the old saying, If the deal seems too good to be true, it probably is, so protect yourself as best you can,and don't be pressured or intimidated into making any quick decisions about purchasing a vehicle.
If yo have any questions, don't hesitate to call my office.
All the Best!
Randy C. Redden
(856) 448-6200
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