'Hurricane Katrina' Cars Hitting The Market

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By By Herb Weisbaum

Summary

There's a new danger for anyone buying a used car -- some cars that were flooded during Hurricane Katrina are now hitting the market instead of being totaled.

Story Published: Aug 7, 2006 at 1:16 PM PDT

Story Updated: Jul 27, 2007 at 8:10 PM PDT

'Hurricane Katrina' Cars Hitting The Market
SEATTLE - There's a new danger for anyone buying a used car. It's estimated that more than a half million cars were badly damaged by Hurricane Katrina last year.

And now those cars are turning up at used car dealerships around the country -- including the Northwest.

Back in March, we first warned about the potential of Hurricane Katrina car fraud. Now it's actually happening.

The damaged cars should have gone to the junkyard, but instead are making their way to the sales lot.

It's taken a while for some of these cars to show any problems, but now a lot of people are slowly starting to realize they bought a Hurricane Katrina car that should have been junked.

It happened to Diane Zelinski. She was excited to buy her son his first car. But three weeks later, the engine exploded while her son was driving. That's when she found out the car had been flooded during the hurricane.

"I think I'm being careful putting him in something safe, when I was actually putting him in a time bomb," she said.

Cars and trucks that have been under water for a few days can be made to look real nice, even though the engine, drive train, or electrical system have been permanently damaged. For instance, airbags that have been flood damaged don't deploy properly. Corrosion in the electrical system can lead to dangerous malfunctions. It can also eat away at the engine, which is what happened to Diane's son.

And again, it's not just buyers along the Gulf Coast that are at risk. These cars are moved all around the country.

There's no fool-proof way to spot a vehicle that's been waterlogged, but there are a few tell-tale signs. AAA-Washington (www.aaa.com) says:

  • Look for mud under the hood
  • Check for a musty odor in the trunk
  • Be suspicious of an older car with new carpet or upholstery.

    You can use a service such as www.carfax.com or Autocheck to see if a flood damaged title has been issued for that vehicle.

    But even they say flood damage is the easiest for unscrupulous car dealers to conceal. And in Louisiana, they don't put a notice on the title when a car has been totaled because of flood damage.

    That's why it's so important to have an independent mechanic check any used car your about to buy. The little bit you shell out for that inspection could save you thousands of dollars down the road.

    One reason people are fooled into buying them is because consumers have no consistent way of finding out the car's complete history.

    So Congress is finally stepping in. They're considering legislation that would require insurance companies to make public information about any car they have declared a total loss.

    "If the insurance companies would put this information into the public domain the day that they declare a total loss, then these vehicles would be red flagged forever," says David Regan with the National Auto Dealership Association.

    The National Insurance Crime Bureau has a Flood Vehicle Database that lets consumers search for vehicles and watercraft affected by Hurricanes Katrina, Rita and Wilma.

    For More Information:

    NADA Offers 10 Tips for Spotting a Flood-Damaged Vehicle

    Consumers Should Watch Out for Flood Damaged Vehicles

    Used Car Market Faces Flood of Damaged Vehicles