New used car market faces flood-damaged cars from Hurricane

Flood-Damaged Cars from Hurricane Helene Are Headed to Used Car Lots – What You Need to Know

Flooded cars are making their way to used car lots after Hurricane Helene (tracker) devastated regions from Florida to North Carolina. The impact of these water-damaged vehicles stretches beyond flood-prone areas, and buyers across the country need to stay vigilant. Corrupt resellers clean these cars, dry them out, and ship them to states unaffected by floods, leaving unsuspecting buyers with vehicles that will quickly become expensive headaches. So how can you protect yourself from buying a flood-damaged car? Let’s dive into the signs and the steps to avoid these vehicles.

Spotting a Flood-Damaged Vehicle

While it might seem hard to believe that a car submerged in water could end up looking pristine, unscrupulous sellers will stop at nothing to make a quick buck. They dry out the vehicles, clean them up, and send them to dealers across the country, where they can often sell for a fraction of their value. However, even with a clean appearance, flood-damaged cars harbor hidden issues that can cause major problems later. Certified mechanics warn that detecting water damage is not always as simple as glancing under the hood.

Demonstrated how to spot potential flood-related problems on a 10-year-old Toyota Prius, which showed moisture inside its headlights. Although moisture in the headlights doesn’t always indicate flood damage (it can happen from rain or humidity), it serves as a clue to dig deeper.

He advised looking for mud or rust under the dashboard, a telltale sign of water exposure. Pulling down panels in the interior, like under the glove box, can expose hidden signs of damage. Floodwaters carry sediment, and vehicles that have been submerged often accumulate rust and dirt in the wiring, the gas pedal area, and other unpainted metal parts.

How Flood-Damaged Cars End Up in Showrooms

Once a flood-damaged car is cleaned up, it’s usually shipped to non-flooded states like Ohio, Minnesota, or Utah, where people aren’t thinking about flooding. “We see higher numbers of flood-damaged cars in these areas because it’s easier to sell them there,”. “People aren’t expecting a flood-damaged vehicle in states where flooding doesn’t occur.” Many of these vehicles are sold at auctions, where dealers pick them up and then resell them to unknowing buyers.

Vehicle data company CARFAX estimates that as many as 89,000 vehicles suffered water damage from hurricanes and tropical storms, like Helene, between June and August this year. That’s on top of the 454,000 water-damaged vehicles already on U.S. roads in 2023. With such staggering numbers, the risk of purchasing a flood-damaged vehicle is higher than ever. This issue becomes a financial disaster for buyers who face skyrocketing repair bills, particularly if the damage goes undetected until after the purchase.

The Hidden Dangers of Flood-Damaged Cars

Modern cars are loaded with electronic components, which makes them especially vulnerable to water damage. Today’s vehicles have more than 80 computer modules controlling everything from airbags to navigation systems. If these components get wet, they may fail without warning or cause costly electrical issues that last for the car’s lifetime. Water-damaged cars can also suffer from corrosion in places that aren’t immediately visible.

Imagine buying a car that starts acting up a few months after purchase, with sensors malfunctioning, warning lights flashing, and the electronics becoming unreliable. These are just a few problems that owners of flood-damaged cars face. Worse still, once you start experiencing these issues, fixing them can be nearly impossible without replacing entire systems – which can cost thousands.

How to Avoid Buying a Flood-Damaged Car

To avoid getting stuck with a flood-damaged car, you need to thoroughly inspect any used car you’re considering. Here are some key things to look for:

• Smell the interior: A musty odor inside the car is a red flag. Sellers may try to cover it up with strong air fresheners, but if the car smells damp, it’s likely seen floodwaters.
• Inspect carpets and upholstery: Check for water stains or dampness, particularly in hard-to-reach places like under the seats or in the trunk.
• Check for rust: Look closely at unpainted metal parts, such as under the seats, around the pedals, or in the engine bay, for rust. Floodwaters cause corrosion, especially in parts that aren’t usually exposed to water.
• Examine the engine compartment: Look for mud, debris, or a waterline inside the engine bay. While sellers often clean this area thoroughly, telltale signs of water exposure can still be present.
• Check headlights and taillights for moisture: Flood-damaged cars often trap moisture inside the light housings, leading to condensation or water droplets. If you see moisture in the headlights or taillights, that’s a sign that the car may have been submerged.
• Inspect the spare tire well: In the trunk or under the car’s floorboards, water can collect in low spots. Lift the mats or covers in the trunk to check for signs of sand or mud.

The Aftermath of Hurricane Helene

Hurricane Helene left a path of destruction from Florida to North Carolina, submerging roads, homes, and thousands of vehicles. The flooding has triggered a new wave of flood-damaged cars making their way into the used car market. According to CARFAX, as many as 89,000 vehicles were affected by this summer’s floods, and the impact will be felt for months to come.

Buyers should be especially cautious over the next year as these waterlogged cars begin appearing in used car lots nationwide. The damage caused by floods isn’t limited to the coasts. States far from the hurricanes’ paths often receive these cars, and unsuspecting buyers in places like Utah, Illinois, and Minnesota could be the ones stuck with these problem vehicles.

The Financial Toll of Buying a Flood-Damaged Car

If you unknowingly purchase a flood-damaged vehicle, it can end up costing you far more than expected. High repair bills and frequent mechanical failures aren’t the only problems. Flooded cars can have lower resale values, meaning you might not get much back when you try to sell it.

The used car market is already tough for buyers, with average prices around $25,415 as of August 2024, according to Cox Automotive. Combined with high-interest rates for car loans (around 12%, according to Experian), adding the cost of repairing a flood-damaged car can be a financial nightmare. Once a car’s electrical systems are compromised by water, there’s no guarantee it will ever run reliably again.

Stay Safe: Tips for Buyers

If you’re in the market for a used car, you can take steps to protect yourself from buying a flood-damaged vehicle:

• Check the vehicle’s history report: Services like CARFAX or AutoCheck can provide a detailed history of the car, including whether it has a flood title or if it has been salvaged.
• Get a pre-purchase inspection: Have a trusted mechanic inspect the car before you buy it. They’ll know what to look for and can spot hidden damage that you might miss.
• Trust your instincts: If something feels off about the car – whether it’s the smell, the condition, or the dealer’s story – it’s better to walk away and keep looking.

Protecting Yourself in a Flooded Market

As we move past Hurricane Helene, the market for used cars is filling up with water-damaged vehicles that are ticking time bombs. Sellers and resellers are eager to make a quick profit, often at the expense of buyers. By being vigilant, inspecting cars carefully, and knowing the signs of water damage, you can avoid becoming the next victim of this unfortunate trend.