The Houston area, where the Car Pro Show has been heard for over a dozen years has experienced a catastrophic hurricane. The large amounts of rain caused flash flooding, destruction, death, and countless numbers of flooded cars. From previous floods and hurricanes, we know that these cars will resurface all over the country in the months and years ahead.
According to vehicle history report provider CarFax, it’s not uncommon for 50 percent of the cars affected by floods to return to service, some requiring only minor repairs, others a full overhaul.
The most severely damaged vehicles, those declared salvaged by their insurance carriers, can put used car shoppers at risk, as less reputable dealers, and some private sellers, try to sell them without full disclosure, or through outright fraud.
These cars are typically unloaded at auctions to be used for parts, or exported to countries with lower safety standards than the U.S. They can, however, be repaired and issued clearly marked “salvage” titles that must remain with them for the rest of their operational lives.
That is, of course, if the parties involved have gone through the proper channels. According to the National Insurance Crime Bureau, it’s not uncommon for shady operators to go to states with less restrictive regulations governing vehicle registrations to score clean titles for their dirty cars, then return to sell them to unsuspecting customers. This practice is called “title washing”.
These transactions often take place through classified ads or on street corners, but sometimes at otherwise legitimate looking car dealerships. Unfortunately, it’s usually up to the customer to sniff out a raw deal.
Along with the financial and legal hassles that can…