Post-Katrina cars may soon flood the market
By Scott Nicholson

Hurricane Katrina caused billions of dollars worth of devastation, but some forms of damage may be rolling out over the next year or so.

The flooding in the Gulf Coast caused damage to an estimated quarter of a million motor vehicles, with some estimates ranging up to a half million. Even though many of the vehicles will be covered under auto insurance, the cars might end up with unscrupulous dealers, who even automotive dealers or wholesalers who aren’t aware of the car’s history.

Jon Matar, a mechanic at Assad’s Automotive in Boone, said his garage uses CARFAX to check on vehicle histories. The web site allows people to check titles on the Internet for a fee of $19.99 for one vehicle, or unlimited searches for $24.99. The site generates a vehicle history report using the 17-digit vehicle identification number (VIN), found on the car’s dash and unique for each vehicle.

Matar said while some flood-damaged cars can be okay if fixed properly, he wouldn’t recommend such a car because problems could show up later, particularly due to corrosion in electronic components. Matar said some signs might be difficult to detect, while others, such as wetness under the carpet, might provide clues to the vehicle’s past.

It’s not illegal to sell flood-damaged cars, though such cars should be tagged as “salvage” and the information should follow the car’s title as it passes from owner to owner. Because some car dealers buy vehicles from salvage auctions and then pay to repair the cars, the water-damaged cars might enter the regional market.

CARFAX said damage from 1999's Hurricane Floyd ruined approximately 75,000 vehicles and more than half of those ended up back on the road. Tropical Storm Allison damaged another 95,000 in 2001 and Hurricane Ivan left added another 100,000 water-logged vehicles to the salvage and used car stream. In North Carolina, titles of “flood cars” must be branded with the fact, though in some states the title may be marked only as “salvaged” if flood-damaged.

Drew Taylor, a car salesman at Boone Auto Exchange, which has been operating for 57 years, said it’s important to know the person you’re dealing with as well as the car’s history. “If you think there’s been flood damage, you need to be real, real careful,” he said.

Taylor said the seller should know what area of the country the car is from. If it’s from one of the Gulf areas ravaged by floods, that could be a warning sign.

Though titles are supposed to be marked, and usually are if insurance claims are filed, Taylor said it’s not a foolproof system. “People can do some awfully good work,” he said. “It depends on how honest the dealer is, and who is selling the car.”

Taylor said one of the most detectable signs of flood damage is the demarcation of a “water line” in the car’s exterior paint or interior. There might be visible discolorations or fading, depending on how long and how deeply the car has been submerged. “If it’s been a while, you’ll definitely notice,” Taylor said.

He said the dealership had a Cadillac that got some electrical damage just from the recent three-day rainy spell and is having a mechanic repair it. “That was just from rain,” Taylor said,. “Imagine what water can do with computers underneath the hood if it’s sitting there?”

CARFAX also advises examining upholstery and carpeting, and if the interior doesn’t consistently match or is loose, some of it may have been replaced. Stains or fading may also indicate past water damage. Rust or mud in the trunk, glove compartment or dashboard may indicate the vehicle was once underwater. Make sure all indicator lights work properly, and test all electronic components so as lights, windshield wipers, turn signals, cigarette lighter, radio, heater and air conditioner.

Wet wires beneath the hood may become brittle if they have been soaked. Musty odors or mildew may trigger suspicion, and vehicles should always be checked by a trustworthy mechanic before purchase.

Taylor said minor damage may be easily fixed by a good mechanic, but that doesn’t mean problems won’t show up later. He said it wouldn’t be long before electronic damage would show up in a flooded vehicle, even if it is operating well when sold.

CARFAX is currently offering free flood checks at its web site, www.carfax.com/flood, and has also developed an advisory that identifies vehicles that were last registered in federally-declared flood disaster areas.

•Scott Nicholson can be contacted at nicholson@wataugademocrat.com