A tip from an industry source warns us that as many as 10,000 damaged vehicles may come out of the recent Texas floods and insurance companies may be letting wholesalers buy these vehicles so they can end up at your neighbor dealer's car lot.
Automotive News and Bloomberg News are both reporting that about 2,500 flooded cars, trucks, Rv's and motorcycles have already been towed to a Copart yard in Houston, where they likely will be auctioned off for salvage value to the highest bidder. Copart works with insurance companies to sell vehicles wholesale that have been totaled in accidents and floods.
While these totaled out flood cars are normally reduced to salvageable parts, some are bought by dealers who intend to resell them after cleaning them up, often moving them to another state, and then off to the local auction yard they go - where their flooded or wrecked history can often be made difficult to trace back.
So if you are in the market to buy a used vehicle in the next six months, watch out. Inspect carefully, have a local mechanic or body shop check out the vehicle before you buy it. Check under seats and in trunks for any sign of water damage, such as sand or dirt or waterline markings.Look for signs of premature rust. Smell for musty odors and look for mold.
And, most important of all, ask the selling dealer to guarantee that the vehicle you are looking at was NOT in a flood anywhere.
And don't just take their word for it. When they say "no flood - no way" be sure to tell them that you want them to write that on the sales contract too. And if they won't do it, then watch out! Don't buy! Go somewhere else.
Don't waste your money on flooded or wrecked cars!
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| Texas floods send thousands of vehicles to auction |
While these totaled out flood cars are normally reduced to salvageable parts, some are bought by dealers who intend to resell them after cleaning them up, often moving them to another state, and then off to the local auction yard they go - where their flooded or wrecked history can often be made difficult to trace back.
So if you are in the market to buy a used vehicle in the next six months, watch out. Inspect carefully, have a local mechanic or body shop check out the vehicle before you buy it. Check under seats and in trunks for any sign of water damage, such as sand or dirt or waterline markings.Look for signs of premature rust. Smell for musty odors and look for mold.
And, most important of all, ask the selling dealer to guarantee that the vehicle you are looking at was NOT in a flood anywhere.
And don't just take their word for it. When they say "no flood - no way" be sure to tell them that you want them to write that on the sales contract too. And if they won't do it, then watch out! Don't buy! Go somewhere else.
Don't waste your money on flooded or wrecked cars!
Burdge Law Office
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