A vehicle appearing in good condition is selling at rock-bottom prices. Be careful what you wish for because nothing is what it seems. Used vehicles already have a bad reputation, and suspicious water damage is a cause for concern.
Warning Signs
Before you jump at the opportunity, search for indicators of water damage. Flooded vehicles may originate from local floods or from other states (i.e., Hurricanes Harvey and Irma). Therefore, buyers should investigate the vehicle for signs of water damage.
• Rusty engines and brakes
• Brittle electrical wires
• Musty odors with or without the air conditioner activated
• Moisture or fog inside windows, break light, headlight, and windshield
• Grit or mud under the hood and in the spare tire compartment
• Oxidation under the hood
• Wet, moldy, sandy, or muddy carpets, seats, floor mats, roof cloth, and dashboard
• Milky oil or transmission fluid
• Erratic behavior when operating automatic features
• Aged or worn paint
Additionally, ask questions. An honest dealer will not deflect or avoid any questions. The person will answer them in detail. If the answer is vague, keep pushing for answers. In fact, there should be a website for the used vehicle. All water-damaged vehicles lose as much as 75% of its value, so it pays to persist.
Solutions
It’s illegal to sell a vehicle with prior knowledge of water damage without informing the consumer. Three federal laws, the FTC Used Car Rule, the Federal Lemon Law, and the UCC, exist to protect consumers. The Federal Trade Commission, or FTC, Used Car Rule requires dealers to post a used car buyer’s guide if they sell six or more used cars on the lot. The Federal Lemon Law embraces only written warranties as a legal sale. It stops implied warranties from taking effect. UCC, or Uniform Commercial Code, automatically includes a warranty guaranteeing safety on the road, yet it doesn’t apply to as-is vehicles.
If you unknowingly suspect a flooded vehicle, act quickly and be persistent. Acquire proof by taking it to the nearest auto shop. Technicians can look at it and know how long water damage occurred on the vehicle.
If you unknowingly purchased a vehicle, take it to the auto shop to verify it. Then, contact a lawyer to assist you with the situation and notify the local government.
Consider any water-damaged vehicle used no matter how new it appears. No new vehicle should contain water damage, and all used vehicles should disclose vehicle history online or through the dealership.
