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Oregonians should beware of "flood cars"
October 24, 2005 05-143
More than half a million cars may have been ruined by flooding from Hurricanes Katrina and Rita along the Gulf Coast, according to estimates by the National Automobile Dealers Association. Hurricane Wilma may add to those numbers.
That may be thousands of miles away, but even Oregonians in the market for a used car need to beware, Oregon DMV warns.
“Moving totaled cars from state to state and concealing their histories is a national problem, even without hurricanes,” said Chris Ratliff, manager of the DMV Business Regulation Unit. “Unscrupulous individuals may try to prey on consumers looking for a bargain. Any time a deal sounds too good to be true, it usually is. That’s particularly true of cars.”
The number of vehicles damaged by the recent hurricanes is so large that the National Insurance Crime Bureau has created a database of vehicles affected by Katrina and Rita. The NICB is allowing the public to check Vehicle Identification Numbers at www.nicb.org.
Consumers often wonder why a little water is such a big problem for vehicles. But submersion in water does severe damage, particularly when water enters the passenger compartment:
- Water and electronics don’t mix. Modern vehicles are full of electronics, controlling the engine, transmission, emission control devices, dash board, warning lights, external lights and entertainment systems. These chips may be located inside the dash or even under the seats. Failure of a single chip’s function could result in severe damage to the engine, for example.
- No more new-car smell. Cleaning carpets and seats may improve the appearance of a flooded car’s interior, but mold and residues may remain.
- Salt is corrosive to metal. The breach of Lake Ponchartrain sent saltwater into New Orleans after Hurricane Katrina. The effects of salt corrosion may take time to show up as failures in electronic systems and engine components.
There is no guaranteed way to avoid buying a damaged car, yet Oregonians shopping for a used car during the next several months can reduce their risks by taking a few precautions:
- Inspect the vehicle. Look for signs of water, mud, corrosion or residue in carpet, upholstery, the glove box, inside the dash if that’s easy to examine, inside tail light fixtures, etc.
- Hire a professional mechanic to inspect a vehicle before purchase.
- Ask for the Vehicle Identification Number and check the VIN at www.nicb.org or against online services such as Carfax or Experian. Or ask your auto insurance agent to check a VIN.
- Ask the seller to show you the title and check for title brands such as “salvage” or “flooded.”
- Shop for a used vehicle among licensed auto dealers, who are as eager to avoid damaged cars as consumers are. Oregonians can find out whether a dealer is licensed by visiting the Business section of www.OregonDMV.com.
Car buyers who later discover that the seller did not disclose information about the condition of a vehicle, such as flood damage, may find it difficult to get their money refunded. They may need to hire a lawyer. Consumers also may download a fraud report form at the Oregon Department of Justice at www.doj.state.or.us or www.oregon.gov/DOJ.
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For more information, contact:
DMV Public Affairs
(503) 945-5270
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