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Don't Take A Bath When Purchasing A Used Car, Warns The I.I.I.

28 August 2000

New Jersey: Don't Take A Bath When Purchasing A Used Car, Warns The I.I.I.; Learn How to Spot a 'Flooded' Car

    NEW YORK, Aug. 28 Buying a reliable used car can be tricky
for many consumers in New Jersey.  This fall, the task may be more daunting
because many used cars were flooded by the torrential rains that hit
North-Central New Jersey.
    Thousands of water-logged cars are expected to arrive in used car lots in
the coming months, warns the Insurance Information Institute (I.I.I.). Water
can be extremely destructive and cars that have spent several days underwater,
frequently experience all types of mechanical problems.
    Cars considered a "total loss" by the insurance company, sometimes are
cleaned-up and resold as regular used cars.  It is not illegal to sell or buy
water-damaged cars. It is, however, illegal, in most states, to not tell a
prospective buyer that a used car was designated a "total loss," points out
the Insurance Information Institute.

    To avoid buying a flooded car, the I.I.I. suggests:

    I. Buy from a reputable used car dealer
       -- Ask the dealer if the car has suffered any water damage. If the
          answer is no, request that they put it in writing.
       -- Find out if the car comes with a warranty, and make sure you
          understand all of the terms of the agreement.

    II. Carefully inspect the car
        -- Visually examine the car for rust, mildew and mud.  Look inside the
           car under rugs, around the dashboard and inside the glove
           compartment.
        -- Check under the hood for water-stains, flaking metal, grit and rust
           around the engine and alternator as well as in cracks and crevices.
        -- Sniff the upholstery, carpet and trunk for musty and moldy odors.

    III. Have a professional examine the car
         -- Hire a qualified mechanic to thoroughly inspect the car. A
            dishonest car dealer may try to hide the signs of water damage,
            making it difficult for non-professionals to determine if the car
            was flooded.

    IV. Conduct a title search
        -- Contact the department of motor vehicles and/or the insurance
           department in your state to track the history of the used car you
           are thinking of buying.
        -- Consider spending money on a service such as CarFax, which tracks a
           car's history through its Vehicle Identification Number (VIN).

    If you need additional help purchasing a used car, contact your local
Better Business Bureaus, your state/city department of consumer affairs or
your insurance professional.