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New Car Dealers Offer Protection and Security
Hurricanes Katrina and Rita left a path of destruction in the southern U.S, and we can all sympathize with the thousands of people who have sustained terrible losses and are now prey to unethical individuals who will take advantage of their misfortunes.
One of the unpleasant fallouts from these storms has been the number of vehicles damaged by flooding. Some estimates put the figure as high as 570,000. All of these flood-damaged vehicles should be declared ?written off,? and how they are disposed of should be of great concern to us all.
On the part of law enforcement agencies, insurance bureaus and new car dealers, the concern is that many of these damaged vehicles could wind up on used car lots. It is expected that approximately 285,000 flood-damaged vehicles could be cleaned up and resold by curbsiders and wholesalers to innocent buyers.
After Hurricane Floyd hit Florida in 1999, an estimated half of the 75,000 flood-damaged cars and trucks were re-sold to purchasers who were unaware of the vehicles? damage caused by flooding.
As a consumer, you should be aware of these issues for two reasons. First, you don?t want to be tricked into buying a vehicle that has extensive water damage. Repair costs could run into the thousands, if the vehicle is worth repairing at all. Secondly, some vehicles with flood damage from Katrina have been submerged in water containing e-coli bacteria and pose a considerable health risk.
To help address the issue of flood-damaged vehicles entering the used car market, the National Insurance Crime Bureau (NICB) in the U.S. has created an online vehicle registry to identify and catalogue cars and trucks damaged by the Gulf Coast storms. I commend the actions taken by the NICB, and those of the Insurance Board of Canada, for making this web site available for consumers and new car dealers. It is up to us all to use it in protecting ourselves and our businesses.
The vehicles catalogued to date can be accessed through the bureau?s database, which is available at www.nicb.com. Not all vehicles will be captured in the database, but this resource will help new car dealers and consumers to identify vehicles with reported flood damage.
In particular, the Toronto Automobile Dealers? Association would like to thank Mr. Stan Griffin, President and CEO of the Insurance Bureau of Canada, for providing this information and tool to assist us in determining if vehicles coming from the U.S. have been written-off, due to damage by hurricanes or floods.
In addition, the Ontario Motor Vehicle Industry Council (OMVIC) is also playing a proactive role in keeping Ontario new car dealers and consumer informed about this important issue. They provide ongoing updates to dealers about flood-damaged vehicles. A recent edition of OMVIC?s newsletter, Consumer Line, is devoted exclusively to this issue. (Visit www.omvic.on.ca to sign up for the newsletter.)
What are the chances that a flood-damaged vehicle could wind up in the Canadian marketplace? The possibility is slim, but it could happen.
Consider this: If you buy a car privately, it?s difficult to know for certain if a vehicle has any permanent flood damage. However, buying from a dealership offers you certain protections and security. Our qualified mechanics are trained to identify signs of water damage, rusted wires, debris in the ventilation system, and other clues to a vehicle?s damaged condition. We also conduct a complete history check on all vehicles before offering them for sale.
Although there is no foolproof method of testing a car for flood damage, there are inspections that consumers can make to lower their risk of buying damaged goods.
For your protection, here are 10 inspection tips* may be used to detect significant water damage and save you from buying a damaged or written off vehicle.
- Check the vehicle?s history ? it may state whether it has sustained flood damage.
- Examine the interior and the engine compartment for evidence of water and grit from suspected submersion.
- Check for recently shampooed carpet.
- Look under the floorboard carpet for water residue or stain marks from evaporated water not related to air-conditioning pan leaks.
- Inspect for rusting on the inside of the car and under interior carpeting and visually inspect all interior upholstery and door panels for any evidence of fading.
- Check under the dashboard for dried mud and residue, and note any evidence of mold or a musty odor in the upholstery, carpet, or trunk.
- Check for rust on screws in the console or other areas where the water would normally not reach unless submerged.
- Look for mud or grit in alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays.
- Complete a detailed inspection of the electrical wiring system looking for rusted components, water residue, or suspicious corrosion.
- Inspect the undercarriage of other components for evidence of rust and flaking metal that would not normally be associated with late-model vehicles.
If you plan on purchasing a car privately, insist on obtaining a Used Vehicle Information Package (UVIP) from the seller. The package costs $20 and includes the vehicle?s registration history, odometer reading, any liens against the vehicle, retail sales tax requirements, and other information about the vehicle?s history. The UVIP can be obtained at local licensing offices.
I can?t tell you how and where to buy a used car. All I can hope is that the information I provided will help you to make a wise and informed car buying decision.
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Paul Stern is President of the Toronto Automobile Dealers Association and is a new-car dealer in Toronto. E-mail comments to president@tada.ca
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