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Be Careful When Buying That Used Car - It Could Be a Flood Victim! Tom T  |
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In light of the pummeling of the southern and central regions of the country by the relentless hurricanes and consequent storms this past summer, I thought I would review what to look for when buying a used car. When such natural disasters careen through an area, large numbers of vehicles fall victim. The majority of these vehicles are totaled by the insurance companies and assigned a salvage/flood title. These "flood victims" are then sold at insurance auctions for a fraction of their original value. What happens to them at this point? There are a couple of scenarios. Companies that sell used auto parts typically buy these vehicles, disassemble them, and sell the parts. Also, reputable vehicle resellers may purchase these vehicles and rebuild them to OEM standards. They then obtain a title from the state and sell the vehicle to a buyer with full disclosure of the history. This is good business.
Unfortunately, unscrupulous re-builders get their hands on these vehicles as well. These thieves buy the flood victims and rebuild them to operating condition as cheaply as possible. Once they get the vehicles running, they clean them up and begin a process called "title washing." This process cleans the title of the salvage brand that was assigned by the insurance company to the particular vehicle. How does the process work? The vehicle is run across state lines and re-registered as many times as necessary to "wash" the salvage/flood brand from the title. Once the title is clean of the salvage brand, the seller can sell the vehicle at a premium to an unsuspecting buyer, unaware of its 'flood victim' status. "Title washing" activity occurs more frequently in areas where a few states line up close to one another, simply because of the geographic convenience. After cleaning the title, these vehicles are usually fed into the auction circuit and transported across the country where hopefully they are sold far away from where they originated. By dramatically decreasing the chance of the vehicle showing up close to home, there is much less chance that the thieves will get caught by local authorities. The unsuspecting buyer might be another dealer at a vehicle auction, which means he will unknowingly pass the vehicle on to "regular Joe" when he puts it out on his used car lot.
What happens two to six months after these flood victims are purchased? Obviously they start failing from what seems to be extensive water damage. What are the symptoms? Electrical connections corrode, main and rod bearing are damaged, and intake systems fail. All the problems seem to point to extensive water damage in what might be a relatively dry climate where no floods have occurred! The only explanation for this apparent riddle is that the vehicle had been submerged in water, patched up, title washed, and sold on the auction block far from home!
Back in the mid-seventies I knew a fellow who bought a vehicle that had been a flood victim. The car was a 1968 Ford Mustang that had been under water for a couple of weeks in the Johnstown Flood. About two months after he bought the vehicle dreadful things started to happen. The driver's floor fell through while he was driving the car! (I had to build a wooden frame to keep the driver's seat from falling onto the ground). Next, all sorts of demons plagued the electrical systems. Wiring harnesses shorted, relays burned up, and the ignition system failed. It was a nightmare. Finally, the Coup-de-Gras: while driving one day he heard a huge exploding sound coming from the trunk. Upon inspection, we found that the shock mounts in the trunk had rusted through from extensive water damage. When the vehicle hit a bump in the road, the shocks let loose and blew through the trunk like a missile exiting a silo! Needless to say, he sold the car for junk, cut his losses and moved on.
Too bad he didn't employ my services to inspect the vehicle before purchasing it. Which brings me to my next point. ALWAYS HAVE A PRE-PURCHASE INSPECTION PERFORMED BEFORE BUYING A USED CAR!!!
A trained eye can pick out such things as paint overspray, frame damage, water damage, and major repairs. The few dollars it costs for the inspection could save you a ton of money down the road. What does a trained technician look for when inspecting a used car?
* To determine water damage: A trained tech looks for water lines in the engine compartment, trunk, and doorjambs. He checks electrical connections for excessive corrosion, which usually takes the form of a green, crusty substance in the electrical plugs and junction blocks. He looks at the seat mounting bolts where the seat fastens to the floorboards; are they rusty? If so, why? Was the vehicle underwater? The tech checks the carpet for proper fit. If it's loose or wrinkled, it's possible that the carpet was removed to repair water damage and then re-installed. He checks the oil, power steering fluid, transmission fluid, and differential fluid for a milky color or emulsification. These conditions can be caused by water mixing with these fluids. A good tech will reach up under the dash and seats to check for mud, dirt, and silt. The only way dirt of this nature can get into these areas is if the vehicle was submerged in dirty floodwater.
* To determine odometer tampering: A knowledgeable tech will look at the odometer closely for smudging or misalignment. These conditions could be an indication of odometer tampering or rollback. Unfortunately, this practice is still in wide use across the country.
* To determine any conflicts with model -Vs- equipment: If the vehicle is a luxury model that is supposed to have a specific type of engine or equipment and it does not, the tech will want to know why. Disparities such as these are indications that the vehicle has been rebuilt. Make sure you are educated on the model you are seeking to buy. Know what equipment should be in place and if it is not, find out why!
* To determine if the vehicle is stolen: A qualified tech will check the VIN (Vehicle Identification Number) closely for any discrepancies between the title, ID tag at the base of the windshield, and the tag on the driver's door. Any differences could be an indication that the vehicle was stolen and given a new VIN. This is quite common with unscrupulous re-builders, who 'part' cars together. By 'part' cars I mean that they put a car together like Dr. Frankenstein put his monstrosity together ... one used body part at a time.
Under the hood inspection: A doctor can determine the state of our health by analyzing our body fluids. A good technician can determine the health of a car's systems by analyzing the fluids also.
* Engine oil dipsticks are checked for heavy varnish or black deposits. The presence of these may indicate the engine has been habitually run low on oil and/or the oil has not been changed.
* Power steering fluid is checked for color and the presence of metal flakes. Blackened fluid impregnated with metal flakes is an indication of wear in the system. A milky color indicates water is mixed with the fluid.
* Automatic transmission fluid should be red and clean. A brown color with a burned smell can be an indication of a worn transmission. A milky color indicates water is mixed with the fluid.
* Engine coolant should be "Clean-n-Green" (or orange in some cases). The presence of dirt may mean anything from neglect to serious engine damage.
* Brake fluid should be clean and full. If there's indication of rust sediment, that could mean excessive moisture from water damage. Low brake fluid can be an indication of worn brakes or a leak in the system.
* Check belts, hoses, and pulleys for proper operation and condition.
* I like to perform an engine and electrical analysis to see if there are any codes in the computer or problems with the electrical system.
Undercarriage inspection should include:
* Any rusted brake and fuel lines?
* Any major fluid leaks?
* Any loose or damaged suspension and steering parts?
* Condition of manual transmission and differential levels
* Brake friction material and brake hardware condition
* Condition of the exhaust system
* Condition of the tires (wear, tread depth, etc.)
* Condition of frame (rust or severe damage)
How do you guard against hidden problems in a vehicle's past? A company called Carfax located in Fairfax, VA provides a unique service. Carfax compiles VIN numbers from insurance companies, DMVs, state and provincial agencies, and vehicle auctions (both used and salvage) in both the U.S. and Canada. Every time a vehicle's VIN is keypunched into a computer, an electronic transaction is created that is traceable, allowing you to pull up a title history. For instance, say that a vehicle shows up as SOLD at an insurance auction in West VA as a flood victim. Later in the month the same vehicle shows up as registered in New York with a clean title and lower mileage. You've just identified vehicle fraud! The Carfax database has over a billion vehicles recorded. Reputable car dealerships across the country are offering Carfax reports on the vehicles they sell. If you are buying a used vehicle from a dealer that does not offer such a report, you can obtain the report yourself. Just call 1-800-FIND-VIN or access the Carfax web site at www.carfax.com. The cost for a report is under $30. Can you afford not to?
'Til next time...Keep Rollin'
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 With over 27 years in the automotive industry and nearly a decade in automotive talk radio, Tom Torbjornsen makes learning about cars easy with his personal manner, his expert advice, and his high energy and entertaining style. Tom has the unique gift of simplifying the complex and tearing down the technical, meeting you at your level of understanding. You will be encouraged as you gain the confidence to deal with problems related to the second most expensive purchase you will make in a lifetime your automobile.
Email Tom
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