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Following recent flooding, now is a good time to ask what protections you have against the unknowing purchase of flood-damaged, used vehicles and trade-ins. As with the aftermath of other flooding events, a new surge in damaged vehicles may enter the market across the region; some vehicles will be fraudulently disguised as being in normal condition.
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To combat vehicle-related frauds of all kinds, bookmark these resources: |
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A good mechanic's careful inspection and intuition can help spot such a vehicle; tell-tale signs exist when a car has been reconditioned from a flood. Helpful tips on detecting flood-damaged vehicles are available at the National Automobile Dealers Association. Read the NADA's tip sheet, and another set of tips from the National Insurance Criminal Bureau. Print and post them in your shop.
Seacoast dealers in particular should take note: saltwater flooding can cause even more damage to a vehicle by its corrosive nature. Additionally, a vehicle can sustain long-term damage without exhibiting immediate problems, as when it is driven through deep water, which can penetrate important electrical components, among other things.
The National Insurance Criminal Bureau (NICB) has a database on its Web site identifying vehicles that have been declared salvage or stolen: visit www.nicb.org/theft_and_fraud_awareness/vincheck/vincheck. The service evolved as a means to combat the sale of vehicles disguised as normal but actually damaged by Hurricane Katrina, but it has wider applications now. Up to five searches a day are allowed at the site. If a car is declared salvage, it's listed at this site.
That, of course, doesn't account for the cars that have not been declared a loss, which some owners may try to sell as normal. A potential customer who accepts an unreasonably low trade-in price for their vehicle and who seems to push hard to complete a transaction could be suspect, said Heidi Jordan, senior special agent at the NICB. But, she added, nothing is a catch-all in preventing the fraudulent sales.
For more information about the NICB and disaster fraud, visit www.nicb.org. To report fraud you may call 800-TEL-NICB (800-835-6422). The NICB is exclusively dedicated to fighting insurance fraud and vehicle theft for the benefit of its member companies and the public through information analysis, criminal investigation support, training, and public awareness.
Information has been published as well in the NHADA's monthly publication Dateline: NH (Nov. 2004): "Flood-Damaged Cars Put Used-Car Buyers Nationwide at Risk."
Another good source for information on vehicles is the National Motor Vehicle Title Information System, NMVTIS. In particular, this site offers:
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Information from a vehicle's current title, including the vehicle's brand history. “Brands” are descriptive labels regarding the status of a motor vehicle, such as “junk,” “salvage,” and “flood” vehicles;
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The latest reported odometer readings;
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Any determination that the vehicle is “salvage” by an insurance company or a self-insuring organization (including those vehicles determined to be a “total loss”); and
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Any reports of the vehicle being transferred or sold to an auto recycler, junk yard, or salvage yard.
Other popular sites to investigate a vehicle's history include CarFax.com and Autocheck.com.
Finally, read online about the NADA's position recommendations on federal legislation to create total-loss disclosure, which is intended to improve tracking methods for totaled and stolen vehicles, at http://bit.ly/bnQdOY.
If you have any further questions, please call me 800-852-3372 or e-mail me at pmcnamara@nhada.com.
Sincerely,
Peter J. McNamara,
President
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