Buyer Beware, as Flood Damaged Cars may soon arrive on Dealer Lots

In the aftermath of Hurricane Irene, damaged cars from cities affected by the storm are likely to be transported to dealer lots. These cars will likely be sold at a discounted price, but without disclosure from sellers about the cars’ exposure to the storm. Flood-damaged cars are generally worth 40 to 70 percent less than undamaged comparable cars.

Some precautions to take are:

1. contact the Department of Motor Vehicles to see if salvaged cars must be identified by the seller;

2. check the vehicle identification number against the National Insurance Crime Bureau database to see if the car has been salvaged or stolen;

3. check for evidence of soot, grime, or water damage;

4. check to see if the car is too clean, compared to other cars;

5. test drive the car and listen to the engine; and

6. check whether the car has a musty odor.