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10 Tips to avoid buying flood damaged cars

BBB has the following tips for car shoppers to determine if a used car is flood-damaged.

Flooding issues can lure in scam artists trying to pass off water-damaged vehicles as ordinary used cars.

These vehicles typically show up at auto auctions, used car dealerships, and classified ads. Unsuspecting consumers, particularly those living in regions of the country unaffected by hurricanes or flooding, are often fooled by fresh upholstery, new carpeting, and bargain prices. 

Once the owners of damaged cars settle with the insurance companies, the vehicles are sometimes refurbished and resold. Flooded cars are often transported well beyond the original region where the flood or major storm occurred to locations where consumers may be less aware of the damage and what warning signs to look for. Sometimes, a middleman buyer intentionally hides a car's history as a flood-damaged vehicle through a process known as "title washing" and sells it to an unsuspecting buyer in a state unaffected by the disaster. Among many possible mechanical problems faced by flooded cars, corrosion can take years to surface eventually, when it can cause electrical and mechanical problems. By the time the issues become apparent, the seller is gone, and the new owner is left with an unreliable vehicle and no recourse against the seller.

BBB has tips for car shoppers to determine if a used car is flood-damaged:

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1. Ask to see the title.

Check the date and place of transfer, verifying where the car came from. Ask questions if the title is stamped "salvage" or arrived from a recently flood-damaged state. Consider purchasing a vehicle history report (be wary of scams), which includes information if the car has ever been tagged as “salvage” or “flood damaged” in any state. 

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2. Carefully check the dashboard.

Examine all gauges to ensure they are accurate and there are no signs of water. Look for indications that the dashboard may have been removed.

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3. Check the electronic components.

Test the lights, windshield wipers, turn signals, cigarette lighter, radio, heater, and air conditioner several times to ensure they work. Also, flex some wires under the dash to see if they bend or crack since wet wires become brittle upon drying. 

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4. Check the interior spaces and condition of the fabrics.

Look in the trunk, glove compartment, and beneath the seats and dash for signs of mud, rust, or water damage. Check for open drainage holes in the bottom of the vehicle. Look for discolored, faded, or mildewed upholstery and carpeting. Recently shampooed carpets may be cause for concern. Carpeting that has been replaced may fit too loosely or not match the interior color. Lift the carpets to check for signs of moisture, rust, or dirt accumulation. 

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5. Get a vehicle history report from a database service.

The National Insurance Crime Bureau’s (NICB) free database lists flood damage and other information. But note that NICB reports are only helpful if the car is insured. If an uninsured flood-damaged car owner tries to sell it on the open market and you’re the buyer, you may never know there’s a problem until things like the electrical system go bad. Companies such as CarFax (a BBB Accredited business in the U.S. and Canada) also offer vehicle history reports. Avoid vehicle history scams.

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6. Remember to check under the hood.

Look for standing water, mud, or grit in the spare tire wheel well or around the engine compartment under the hood.

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7. Look for rust.

Inspect areas like door hinges, hood latches, trunk latches, and under the dashboard for rust or corrosion, which may indicate water exposure. 

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8. Do a smell test.

 A heavy aroma of cleaners and disinfectants is a sign there may be a mold or odor problem.

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9. Research the dealer.

Always check out the BBB Business Profile of the dealer at BBB.org. Ensure the dealer has a return policy or warranty that allows you to return the car if flood damage is discovered after purchase. 

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10. Get an inspection.

Before buying any used car, consider having a pre-purchase inspection. A trusted professional inspection service (such as a BBB Accredited auto service shop) can provide a detailed assessment of the vehicle's condition and identify signs of flood damage that you might miss. Auto services near you.

Additional auto resources

Before buying a car, stay informed with BBB's tips on budgeting, financing, negotiating deals, and maximizing trade-in values.

Navigate the car rental process effortlessly with BBB's tips on finding deals, renting during shortages, and using rideshares.

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BBB offers guidance on auto insurance, vehicle maintenance, and repairs to help you stay informed and keep your car in excellent condition while avoiding costly mistakes.