Posted by Laurie_Kight |

With all the flooding that's been happening in the U.S. this summer, it's not a bad idea to know how to spot a vehicle that has spent some time in the water. The National Automobile Dealers Association offers this summary of the problem: "Five million vehicles are totaled by insurance companies each year. Many of them are resold at salvage auctions, rebuilt and then enter the market with a clean vehicle title. Consumers could buy a rebuilt wreck without kknowing the extensive damage to the vehicle."

NADA offers 10 tips for spotting flood damaged vehicles on their Web site. Among the things to look for: recently shampooed carpet, water residue or stain marks under the floorboard carpet, and a moldy or musty smell in the upholstery, carpet or trunk. 

NADA notes that "the problem with totaled, flooded...vehicles persists because state motor vehicle titling laws are confusing and incomplete. Insurance companies are not required to 'red flag' total loss vehicles for customers. Also, buyers do not have enough timely access to title data from DMVs or total-loss data from insurance companies."

Consumers and dealers could benefit from having more complete VIN-based histories prior to purchasing vehicles. Bills are currently in the U.S. House and Senate that would provide for a VIN-based ID system that would permanently "red flag" totaled vehicles, and require insurance companies to disclose the VINs of vehicles deemed totaled, and the circumstances surrounding such losses. 

Posted on: 7/25/2008 at 5:10 AM
Categories: The Smart Consumer
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