Used Car Buyers Beware: Flood-Damaged Cars Are Coming; Auto Club Joins Insurance Commissioner Garamendi to Warn Consumers Against Buying Flood-Damaged Vehicles

LOS ANGELES--Jan. 2, 20064, 2006--The Automobile Club of Southern California joined California Insurance Commissioner John Garamendi today to warn local car buyers about the danger of purchasing used vehicles damaged by flood waters during last year's Gulf Coast hurricanes.

"Hurricanes Katrina and Rita and other storms damaged between 300,000 and 600,000 vehicles in 2005," said Steve Lenzi, the Auto Club's senior vice president of public affairs. "It is estimated that at least half of those will end up on the used car market instead of being scrapped."

Some states require dealers to disclose known flood damage, but refurbishers intent on deception can clean up the more obvious evidence. Telltale signs that car buyers should look for include mud or residue under the dashboard, musty odors in the cabin or trunk, and mud or grit behind under-hood components such as the alternator, starter motor, or power-steering pump.

But even if mildewed carpeting or a ruined alternator is replaced, flooding can do permanent damage to sensitive electronics that manage the engine's operation or control such safety components as air bags and antilock brakes. And such damage might not show up until months after the flooding occurred, Lenzi added.

To inform its 6 million members about the threat of flood-damaged vehicles, the Auto Club published a warning in the January/February issue of its member publication, Westways. In this article, the Auto Club advises that used car buyers can protect themselves by:

-- Accessing free information on a special Web site, www.carfax.com/flood, provided by Carfax, a firm that provides background checks on used vehicles. Prospective buyers enter a vehicle's 17-character vehicle identification number (VIN) and check if it was registered in a disaster area. The site also shows if the vehicle's title is marked "flood damaged."

-- Checking the database of the National Insurance Crime Bureau, www.nicb.org, which contains a list of vehicles and watercraft affected by the recent hurricanes. This information is also free.

-- Buying a certified used car or truck -- one warranted by the automaker, not just an individual car dealer -- because automakers preclude flood-damaged cars from their certified-car programs.

-- Thoroughly test driving a used vehicle and having it inspected at an auto-body shop and an Auto Club-Approved repair shop.

The Automobile Club of Southern California, the largest affiliate of the AAA, has been serving members since 1900. Today, the Auto Club's members benefit by roadside assistance, insurance products and services, travel agency, financial products, automotive pricing, buying and financing programs, automotive testing and analysis, trip planning services and highway and transportation safety programs. Information about these products and services is available on the Auto Club's Web site at www.aaa.com.