Advice For Used Car Buyers - Check It Out First

A field of thousands of cars awaiting their fate.
Source: NAIC

By Mark E. Ruquet

In the market for a used car or some used auto parts? Well, a recent public service announcement from the National Insurance Crime Bureau will give you pause before making that purchase. The NICB says that the recent flooding in Texas has produced up to 10,000 automobile insured losses and just like other natural disasters in the past, some of those cars may find their way into disreputable hands.

The NICB said working with member companies, law enforcement and companies that handle the damaged autos, the vehicles are readied for sale. All the cars are re-titled with the Department of Motor Vehicle to indicate the auto was flood damaged. Most are sold to companies that strip the cars for usable parts.

Unfortunately, some cars are cleaned up, the VIN number switched and re-sold out of state. To help prevent buyers from purchasing these damaged vehicles, the NAIC has set up a database that allows buyers to check the automobile’s background before they make that purchase. They also warn against sellers who clean-up a damaged car that was never insured and try to sell it, adding to always have a mechanic check the car before you purchase it.  

The NAIC has produced a video along with giving more detail about its efforts, plus some useful buying tips and where to find help. A link to the NAIC’s public service announcement, video and buying is here.

While it’s great that the NAIC and others work hard to make buyers aware of these schemes, I wonder why don’t they simply make sure that a vehicle that’s been flooded is made inoperable. Maybe used parts buyers should wonder too. If its used, well, where did it come from and can you be certain the part will work like its suppose to?  

The industry has had lots of experience with this situation. Superstorm Sandy produced an estimated 250,000 insured vehicle losses and Hurricane Katrina resulted in more than 300,000 vehicles damaged.

Of course, if people were honest, we would not have to worry about finding an honest dealer and could avoid these situations.

Anyway, the reality is that there are lowlifes out there that try to palm off damaged autos on unsuspecting buyers. As the old saying goes — buyer beware or if it seems too good to be true -- it probably is too good to be true.