CENTREVILLE, Va.–As communities assess damage from Hurricane Isaias, credit unions as lenders and members as borrowers will want to pay attention to a Carfax warning that as many as 48,000 vehicles nationwide may already have sustained flood damage from storms earlier this year, with some potentially making their way into the used-car market.
The vehicle history company said storms between April and August affected thousands of vehicles in Michigan, Wisconsin, Mississippi, Indiana and West Virginia, among other states.
According to Carfax, the newly damaged vehicles add to more than half a million water-damaged vehicles already on U.S. roads.
The company warned that flood-damaged vehicles can be transported and resold far from the communities where flooding originally occurred, making it difficult for prospective buyers to recognize potential problems.
Hidden Damage Can Create Problems
“Floodwater can leave behind damage that isn’t always obvious when a vehicle is cleaned up and put back on the market. And those cars can appear far from the area where the storm occurred,” Paul Nadjarian, chief product officer at Carfax, said in a statement. “With storms bringing flooding across the country, it’s a good reminder for anyone shopping for a used car to understand its reported history. A vehicle may look great on the outside while hidden water damage can create serious problems.”
The company noted that flood-damaged vehicles are not necessarily sold in the same state where the flooding occurred, potentially exposing buyers nationwide to the risk of purchasing vehicles with undisclosed damage.
Warning Signs for Used-Car Buyers
Credit unions may want to pass along to members Carfax’s recommendation that consumers closely inspect vehicles for indications of previous water damage, including:
- Musty or moldy odors inside the vehicle.
- Damp carpeting or upholstery.
- Carpeting or upholstery that is loose, stained, unusually new or does not match the rest of the interior.
- Rust around doors, beneath the dashboard, on pedals or around hood and trunk latches.
- Mud or silt in the glove compartment, beneath seats or in other unusual locations.
- Brittle wiring beneath the dashboard.
- Fogging or moisture inside headlights, taillights or instrument panels.
Vehicle History Checks Recommended
The company offers a free Flood Check tool at carfax.com/flood to help consumers determine whether a vehicle has a reported history of flood damage.
However, Carfax emphasized that buyers should not rely exclusively on vehicle history information.
Instead, the company recommended having a trusted mechanic perform an independent inspection and conducting a thorough test drive before completing a purchase.
Carfax said its online vehicle listings also include free vehicle history reports.
