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Don't Get Stung Buying A Car That's Been Water Damaged! --plus-- Houston Floods = Thousands Of Cars At Great Prices: Run The Other Way!!-- plus --Want To Check The Background Of That Car You're About To Buy [or Lease]? --plus-- Get Smart: Get Ben's Smart Car Seminar Information!
August 2, 2001
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Dear Ben: I saw one of your reports on WFAA-TV/Channel 8 (News 8 at 9/Good Morning Texas) recently and was very disturbed about the subject matter. You were discussing the potential influx of cars into North Texas that had been damaged by the floods in Houston a couple of months ago. My son has been looking to buy his first car and I know he's going to be an easy target for a bad deal because of his naiveté and limited budget. What can we do to protect ourselves from unwittingly buying a flooded-out car?
Debbie in Hurst
Dear Debbie: There's always going to be flooding somewhere in the country every year and the wave of damage to automobiles created by these natural events is incredible. According to Justin Schmitt of Allstate (Texas' second largest insurer of autos), his company has already totaled over 13,000 cars/trucks/SUVs damaged in the Houston floods that resulted from Tropical Storm Allison. Stop right there and think about it; don't take this number lightly: That's 13,000 autos from just ONE of many of insurance companies covering Houston-area drivers! Do the math and the final numbers [and opportunities for fraud] are staggering. Aside from following our #1 rule ("If it sounds too good to be true, it's because it IS"), here's some sound advice from Justin and his friends at Allstate:
- Get a reputable mechanic to perform a pre-purchase vehicle inspection. Most flood damage can be discovered during a careful, knowledgeable inspection
- Try to purchase a vehicle from either a familiar individual or reputable dealer who may offer a warranty or "buy back" provision.
- Be cautious of "great deals" on newer-model vehicles manufactured within the last five years, especially those with new carpeting or upholstery. Use a flashlight and check under the mat in the trunk and beneath the dashboard/floorboards. Mud or debris in these areas, or faint horizontal "water marks" are giveaways that the vehicle's been flooded out.
- Here's a concept: Examine the vehicle's title BEFORE purchasing! The state of Texas' computer system is not identifying vehicles as flood damaged [yet], so always ask to see the title. If the vehicle has been "totaled" by the insurance company, this will be written right on the title.
- Consider using a private service that documents vehicle histories. These services can research insurance claims on previously damaged vehicles. (Ben's choice for ease of use and cost: www.carfax.com Get a car title history for under $15.)
- Consumers wanting additional information about vehicle titles and registration, either check with your local tax assessor/collector's office or contact the Texas Department of Transportation: (512) 465-7611.
Believe it or not, there are people out there that will intentionally try to deceive you by having flooded-out cars that have been totaled by the insurance company re-titled in states that do not have systems in place to follow these "totaled titles". Unscrupulous individuals trading in these types of vehicles know which states will "wash titles" and capitalize on the greed or inexperience of consumers looking for the ultimate "great deal" which almost always turns out to be one of their costliest mistakes ever. For more information on getting the biggest bang for your automotive buck, get a copy of the information I gave away at my recent "Smart Car Seminar" on-line: Click Here
Dose of Dover For The Week: According to Justin Schmitt from Allstate, their policy is to "total" a car if the water has reached the dashboard: "Once the water's gotten that high, you can kiss all of the on-board computers and other electronics goodbye." Justin also made a really good point when urging consumers to get a look at the car title first. "Original titles should be light blue in color and are worth viewing before putting any money down/at risk on any vehicle. If the car has had a problem and was totaled by the insurance company, it'll be reflected on the title." He says there are three types of "flood titles": If the car has been damaged 60% (or less) the State of Texas will issue a green flood title; up to 85% damage gets a purple-colored title and 90% or worse, a brown title. My advice? NEVER touch a car if it's ever had a water-related history.
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