One major problem being encountered by the auto market these days is the presence of flood damaged cars. The high number of past natural phenomena like hails, thunderstorms and hurricanes has all contributed to this current state of the auto market. Among the well known hurricanes that we have encountered recently are hurricanes Katrina, Rita, Gustav, Hanna and Ike. These and some major thunderstorms have all put in to the accrual of flood cars to a number that is more than 500,000.

Flood damage cars are already a problem on itself. That is due to the fact that they will not be performing the same as before anymore. Unless the damage parts are determined, repaired and replaced. The bigger problem arises though, when this flood damaged cars are put back into the market. And unsuspecting and non suspicious buyers will never know that they are already being offered a flood car that has only been refreshed to conceal its true state. If you are the unfortunate buyer, you are absolutely at the losing end not only on the financial aspect but also security wise. There are parts that will surely suffer from damage and corrosion however the progression can be slow. So while using this you will never know when a certain part will relinquish that can lead to the failure of the brake and security system of the car. This scenario can result to accidents or worst death.

Nobody wants to be in this situation. Thus we should be knowledgeable on how to avoid this flood car. To help us, there have been various tools being put out by the government and non government organizations. One is the NICB which offers free information regarding car’s history through their VIN or vehicle identification number. You will be able to verify if a certain vehicle has been labelled as flood damaged, watercrafts, salvage, or embezzled. Online sites also offer this type of information. Some are equipped with a feature known as Storm Scan that can tell if a vehicle has been tagged as flood car or was registered during the 12 month period after a so called disaster. The Better Business Bureau in turn can provide information on auto dealers that have been complained by consumers due to deceitful act. The drawback of these tools can be on the fact that the information that they can provide may not be that thorough because of insufficient source of information.

The federal government are well aware of auto fraud thus for a long time now they have the unfair and deceptive acts and practices or UDAP law that protects consumers against fraudulent act. This law is very encompassing hence each state has made specific rules to focus on fraud cars. Some states have come up with mandates that orders for all auto dealers to label all their offerings accordingly such as reconstructed, salvage, or flood. In addition this law also instruct all sellers to reveal the full detail regarding the history of the cars that are being sold. The Lemon law that is originally intended for brand new cars has been extended in some states like New Jersey to cover used cars as well. In this law the manufacturer offers a guarantee for its product. Although there are certain requirements that should be met before a particular car qualifies to this and this differ from one state to another. There have been instances when interstate collaboration has been done to combat auto fraud in cooperation with certain organizations like NAAG Auto Working Group and Consumer Fraud Task Force.

Still other regulations have been endorsed by the congress to put a stop to auto fraud. One is the Anti-Car Theft Act of 1992 that has paved the way for the creation of National Motor Vehicle Title Information System (NMVTIS). This ensures that a certain vehicle has been free of fraudulent act before the issuance of new title. A database of car’s history is being constructed through the joint effort of all the insurance companies, auto dealers, and junk and salvage car lots. Another rule that can offer consumer protection is the Used Motor Vehicle Trade Regulation Rule that was executed by Federal Trade Commission in 1984 and restructured at some point in 1995. The main goal of this rule is to put a stop on the false claims being presented by auto dealers.

The flood cars are really flooding the auto market increasing the possibility that certain consumers can innocently purchase them. To avoid this, the state should see to it that they are strictly implementing their existing rule against auto fraud or better yet enact a new mandate that can effectively combat the sale of these cars. For consumers, they should be able to equip themselves with appropriate knowledge on this topic. Tools against them should be continuously developed. Interstate and increased number of insurance companies, auto dealers and junk operator participation in the NMVTIS to competently come up with a database that is thorough and complete in combating any possible fraudulent attempts.

Author Bio: Tommy I. Vestore
Edmonton Used Car Dealers
Chilliwack Auto Dealers
Winnipeg Truck Traders
 

Category: Automotive
Keywords: flood damaged cars,best car deals,auto auctions flood damaged trucks,auto insurance wrecks