CarMax and Experian Automotive Warn Consumers About Flood-Damaged Vehicles
Approximately 45 Percent of Re-Titled Vehicles from Hurricane Katrina Have Lost Storm Damage Designation
RICHMOND, Va., Dec. 11 -- The effects of the devastating hurricanes and flooding in 2005 are still being felt today. More than 200,000 vehicles have had their titles branded as flood or storm damaged as a direct result of these disasters. However, a significant number of these vehicles have lost their flood-damaged designation after being re-titled in other states, according to analyses conducted by Experian Automotive, a leading automotive information source that provides histories on used automobiles through its AutoCheck(R) vehicle history reports. CarMax, Inc. , the nation's largest retailer of used cars, is partnering with Experian to advise consumers on how to avoid purchasing flood-damaged vehicles.
"Consumers should be aware that some businesses and individuals may try to sell salvaged and flood-damaged cars without revealing the vehicle's history," said David Claeys, purchasing manager for CarMax in Richmond, Virginia. "Flood-damaged cars that are not structurally or mechanically sound could be repaired, re-titled, and sold to unsuspecting buyers."
"Even a year later, Hurricane Katrina continues to have a significant impact on the auto industry," said Scott Waldron, president of Experian Automotive. "Our data has shown that there are still many vehicles from the storm-affected areas being branded as damaged, and yet a significant number of those vehicles lose their flood-damaged brand when re-titled in another state."
According to the data compiled by Experian Automotive, nearly 45 percent of branded vehicles damaged during Katrina that have been moved to other states in the past year have lost their storm-related brands. These vehicles, which were registered in the U.S. Zip Codes identified by FEMA as devastated by the effects of Hurricane Katrina, may have carried one of several different brands to denote storm-related damage including Scrapped, Junk, Rebuilt, Rebuildable, Water Damage, Salvage, and Storm Damage - Katrina (an exclusive brand to Louisiana). A title "brand" refers to words or symbols on the vehicle's official title issued by the state DMV that signify the vehicle's status or condition. Other examples of brands include Salvaged, Lemon, Rebuilt or Reconstructed, Flood, Hail or Fire Damaged, Totaled, having rolled back odometers, Stolen, or Abandoned.
"We have also found that storm-related damage to vehicles isn't limited to just flooding," said Waldron. "States brand up to ten times as many cars 'Salvage' as they do 'Water Damage' after a hurricane. AutoCheck vehicle history reports tap Experian Automotive's National Vehicle Database which contains timely information on more than half a billion vehicles to help used car shoppers identify these vehicles in order to make a more educated buying decision."
CarMax's car-buying experts offer these ten tips for identifying a vehicle with possible flood damage:
1) Check for a moldy smell inside the car.
2) Check for rust under the brake or gas pedals.
3) Look for dirt or rust under the dashboard and floormats.
4) Look for corrosion, water marks, or a thin brown line on the exterior
of the vehicle.
5) Ask questions about an older car with a brand new interior or
carpeting.
6) Check to see if the electrical system works.
7) Feel the carpet for dampness.
8) Inspect the bolts and screws under the seats for evidence of rust.
9) Check the undercarriage for excessive rust.
10) Run an AutoCheck(R) vehicle history report to see whether a flood
claim has been filed or a salvage title has been issued on the vehicle.
CarMax's nationwide team of approximately 700 car-buying experts has appraised more than 5 million cars. These buyers are trained to detect whether a car has flood damage or has been in a major accident. CarMax also offers free AutoCheck vehicle history reports for vehicles at http://www.carmax.com/, helping customers to quickly and easily confirm that the vehicle has not been previously branded with storm-related damage or other issues. CarMax will not retail any car that has flood or frame damage or an odometer discrepancy.
About Experian Automotive
Experian Automotive, a business unit of Experian(R) Group Ltd.
(LONDON: EXPN) , delivers information solutions to manufacturers, dealers, finance and insurance companies, and consumers. Experian helps automotive clients increase customer loyalty, target and win new business, and make better lending and vehicle purchase decisions. Its National Vehicle Database, housing more than 500 million vehicles, along with Experian's credit, consumer and business information assets, meets the industry's growing demand for an integrated information source. Experian's advanced decision support services help clients turn this information into improved business results. Experian technology supports several top automotive web sites including eBay Motors, Yahoo! Autos, CarsDirect.com, CarMax.com and NADAguides.com. For more information on Experian Automotive and its suite of solutions, visit our web site at http://www.experianautomotive.com/.
About CarMax
CarMax, a FORTUNE 500 company, and one of the FORTUNE 2006 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 74 used car superstores in 35 markets. CarMax also operates seven new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended August 31, 2006, the company sold 311,241 used cars, which is 94% of the total 330,296 vehicles the company retailed during that period. For more information, access the CarMax website at http://www.carmax.com/.
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NOTE TO EDITORS: CarMax's car buying experts at the CarMax store in your market can provide a visually compelling demonstration of how to look out for possible flood damage indicators. Contact us to arrange interviews.