Flood Vehicles from Gulf Coast Resurface in California
By Jennifer Reed, Online Editor
FAIRFAX, Va. (Jan. 27, 2006) -- In an announcement Thursday, Carfax said it discovered that scam artists recently cleaned up 14 hurricane-flooded vehicles from the Gulf Coast, altered their titles and tried to sell them through a California auction yard. Company executives caution auto industry professionals that similar sales could occur throughout the country in the next few months.
Additionally, the Automobile Club of Southern California recently teamed up with the state's Insurance Commissioner John Garamendi to warn local buyers about the danger of purchasing used vehicles damaged by Hurricanes Katrina and Rita.
"Hurricanes Katrina and Rita and other storms damaged between 300,000 and 600,000 vehicles in 2005," said Steve Lenzi, the Auto Club's senior vice president of public affairs. "It's estimated that at least half of those will end up on the used car market instead of being scrapped."
As many in the auto industry know, even if mildewed carpeting or a ruined alternator is replaced, flooding can do permanent damage to sensitive electronics that manage the engine's operation or control safety components such as air bags and antilock breaks.
Executives said refurbishers intent on fraud can clean up the more obvious signs of evidence. Buyers and industry professionals should look for mud or residue under the dashboard, musty odors in the cabin or truck and mud or grit behind under-hood components such as the alternator, starter motor or power-steering pump, executives said.
According to the National Insurance Crime Bureau, more than 200,000 flood-damaged units have been identified and added to its database, with more anticipated. To check the NICB's database of hurricane-damaged units, visit
www.nicb.org.
Another vehicle history source for such information is Carfax. The company said it is still offering free Carfax Flood Checks and an advisory noting any vehicle last registered in a FEMA disaster area for Hurricanes Katrina and Rita. Visit
www.carfax.com/flood for more.