HEATHROW, Fla.–Credit unions as both auto lenders and as stewards for their members’ best interests are being cautioned to be watchful of a larger-than-usual number of used vehicles with flood damage.
The American Automobile Association noted that through July 15 there had been more than 3,000 flash flood warnings nationally, the highest total on record through that date since the modern alert system began in the mid-1980s.
The Cost of Tech
“Modern vehicles have much more technology on board than ever before,” Shawn Steward, public affairs manager for AAA Kansas, said in a statement. “There are wiring systems, sensors, and electronic modules running throughout our vehicles, including behind the bumpers and fenders. Water intrusion into those systems can cause serious, costly, and potentially unrepairable damage.”
AAA reminded that floodwaters can also damage engines and other mechanical components, repairs for which often exceed a vehicle’s value, leading insurance companies to declare them total losses.
“While many flood-damaged cars are given salvage or flood titles and recycled or scrapped, some are repaired just enough to resell — sometimes without disclosure of past damage,” AAA cautioned.
Advice for Shoppers
It encouraged consumers to:
- Inspect upholstery, carpeting, and seatbelts for water stains, mud or mismatched fabric
- Check under carpets, inside the trunk, and behind panels for signs of dirt, sand, or mildew
- Test all electronics, including windows, seats, lights and air conditioning
- Look for rust around doors, hinges, and under the hood
- Check for moisture inside headlights and taillights
- Verify the VIN through the National Insurance Crime bureau’s free VINCheck tool and consider purchasing a CARFAX report
