Be wary of these used cars

Experts predict that thousands of hurricane-stricken cars are expected to be sold in the area.Thousands of Hurricane Katrina-damaged cars are expected to appear locally and automotive experts are warning people throughout Southern California to look both ways before buying.

As many as 600,000 vehicles were hit during the massive August hurricane that wreaked havoc throughout the Gulf Coast and displaced hundreds of thousands of people. Officials with the state Insurance Commission said Southern California was a natural destination for many of these vehicles.

“There’s few things worse for a car than flood damage,” South Coast Toyota General Manager Paul Lunsford said.

Besides mildewed carpets and rust, flooding can extensively damage electrical components that help operate the engine or control safety components such as air bags and anti-lock breaks. Sometimes the damage can takes months to show up, said Marie Montgomery of the Southern California Automobile Club.

“Even if they replace the carpet and take out an engine part, you could still have a vehicle that isn’t reliable,” she said.

It’s unclear how many vehicles are expected to make their way to Orange County. Auto Club officials estimated as many as 150,000 damaged vehicles could be resold, and they warned that some sellers might try to hide the damage by re-registering the vehicle in multiple states until the “salvaged” branding disappears from the title.

So far, there have been few proven incidents of Hurricane Katrina-damaged cars being resold in the area. Investigators are looking into a set of used cars in Gardena that were reportedly from Arizona, but had sustained major salt-water flood damage, Montgomery said. A Northern California auto recycler recently said he discovered a hurricane-damaged car on an Internet-based auction site.

Lunsford said he was skeptical that any major car dealers would be tricked into reselling hurricane-damaged cars.

“If you look closely, there is so much damage to a car by a flood that there will be indications,” he said. “That is something we would spot in our due diligence.”

Montgomery estimated that most damaged cars would likely be sold through third-party sellers, often individuals appearing to resell their vehicles but work for an auto-wholesaler or small dealer.

“Of course, if a car were really that messed up, it would be difficult to drive it from Texas or Louisiana to California,” Lunsford said.

Before buying a used car, Montgomery recommends looking for any type of water or mud damage, and be wary of replaced carpeting or upholstery. She also recommended running the vehicle identification number, or VIN, through a third-party title search company to check for previous damage. If the consumer still has doubts, she recommends taking the car to a trusted mechanic before making a purchase.

LET THE BUYER BEWARE

Auto experts estimate that about 150,000 salvaged cars from Hurricane Katrina could be on the local market. Here are some tips to help you avoid getting stuck buying a flood-damaged car:

Check the Title: Limit your search to vehicles that were owned away from flooded areas. Beware of any titles that list ownership or registration in Louisiana, Mississippi, Alabama or Texas. Beware that some sellers might try to conceal the vehicle’s origins by re-registering in several states.

Run the VIN: Consumers can obtain low-cost title checks by running the vehicle’s vehicle identification number, or VIN, through a number of report services. The National Insurance Crime Bureau offers free checks of suspected VIN’s at www.ncib.org. Remember that the information on these sites is provided by previous owners, and past details sometimes get left out.

Get Smog Records: All cars must undergo regular smog checks and California’s Bureau of Automotive Repairs can usually provide a smog history of a vehicle. The results provide dates and smog test stations each time a vehicle was tested. Check to see if your vehicle spent time in a Gulf Coast state. Visit www.smogcheck.ca.gov for more information.

Hire a Mechanic: For less than $100, a buyer can usually get an independent mechanic to give the potential vehicle a once-over and look for signs of flood damage.

If you think you might have purchased a hurricane damaged car, call the California Department of Insurance at (800) 927-HELP.

* DAVE BROOKS covers business and the environment. He can be reached at (714) 966-4609 or by e-mail at [email protected].