Hurricane Sufferers Victimized by Illegal Car Selling Scam
by Lauren Fix, The Car Coach®
Hurricane sufferers of Katrina and Rita who have already been displaced from
their homes and lives, are now being further victimized by swindlers who are
looking to take advantage of them, especially women, by an illegal car selling
scam that involves flood damaged cars.
The scam involves selling flood damaged cars, especially to a large percentage
to women that are supposed to be crushed or shredded due to unrepairable water,
ecoli and mold damage. These scam artists are looking to take these individuals
limited funds and in return provide them flood-damaged vehicles that are an unsafe
to drive.
These vehicles have damaged
components like seat belts, airbags and the electrical systems. The flood damaged
automobile also poses a health hazard, because they contain ecoli, mold and
corrosion which is unhealthy to breathe and touch. Children are at the most
risk from ecoli.
Do these cars really get into the marketplace? Oh yes they do! State Farm
Insurance recently settled a $40 million lawsuit when it was disclosed that
the insurer had dumped almost 30,000 totaled cars at auction without bothering
to have them retitled as salvage vehicles. Many of the vehicles will be
shredded into little metallic pieces. However, other will end in auctions
or sent to other states before it gets to your state. This is called washing
titles. And then there are the cars owners that didn't have insurance coverage,
they will sell off their vehicles to attempt to recoup the losses.
The best thing would be for all the states to adopt a uniform title form that
would spell out in plain language if the car was flood-damaged, fire-damaged,
junked, scraped or whatever.
Why isn't the government doing anything to stop this problem? We need to
take a stand and protect consumers from these death traps. Sadly, these
scams affect a large percentage of women, because women make 85% of the
buying decisions.
As a female automotive expert, I'm dedicated to helping women to be empowered.
To empower all drivers here are some answers to your questions from recent
appearances on CNN, CNN Headline News and numerous TV, radio and print articles.
The Car Coach® Answers Viewers Questions About Flood Cars
What should I do if my car has been under water?
First, contact your insurance company. Next, evaluate the height of the floodwaters
around your car. If floodwaters reached the mid-point of the tire or higher,
do not start your car because that may cause more damage. Once the floodwater
subsides, get your car towed and send it to an ASE (National Institute for
Automotive Service Excellence) certified technician who can look for unseen
damage. Your insurance company may have specific requirements on where to send
your car so make sure to ask your agent.
At what point is the car not repairable?
The reality is, if the water has reached that midpoint on your tire, you most
likely want it to be declared a ‘total loss'. Once an automobile has been flooded,
the entire electrical system becomes questionable – and many critical systems
are located on the bottom of the car. Water has a way of ruining electronic
components, especially for vehicles equipped with a computer controlled engine
management system.
Again, do not start the car and owners should find an ASE certified technician
to determine further damage. Vehicles that have been completely under water
should be destroyed. If the car has been sitting in salt water – consider it
a total loss. Saltwater destroys paint, rubber, electrical wiring, metal and
all upholstery.
What if I don't have my insurance papers?
Notify your automobile insurance company through its toll-free number. If the
car is under water or partially submerged, identify any items that may be damaged
and relay that information to your agent.
How do insurance companies typically determine my car's value?
A car's value is determined after it's declared a 'total loss.' Once that is
decided, each company has its own proprietary list of car values and specialized
software for valuing cars in each region. Auto insurance companies don't use
the standard Kelley Blue Book or National Association of Automobile Dealers
book value, but they do take into consideration the car's mileage and pre-accident
condition. The insurance company may also get comparative price quotes from
local dealers, but their prices are generally lower than those you would see
when you walk onto the lot.
What if I disagree with my insurance company's value?
There are several things you can do. First and foremost, if you have maintenance
records that show the car was in good condition, such as oil changes every
3,000 miles or routine check-ups by a mechanic, copy those records and present
them to the insurance company. Include any information on special parts or
upgrades done after the purchase of the car.
Try getting price quotes on replacement cars from at least three dealers within
a reasonable driving distance or on internet and submit those to your insurance
company. Also, ask the insurance company to provide you with a list of dealers
within a specific distance who can sell you a comparable vehicle.
If you still aren't satisfied, you can step up the process and go to mediation
or arbitration, which means presenting your case to a neutral party for assistance
in reaching a compromise or, in arbitration, a binding decision.
Where should I start my search for another vehicle?
A great place to begin your search is on the internet, websites like eBay Motors
and AutoExtra.com have a great variety of vehicles listed from across the country
in all price ranges. Most local libraries offer free internet access. For people
returning to areas not devastated by Katrina the dealerships will likely open
soon.
How can I avoid buying a car with previous flood or accident damage?
It is common that unscrupulous sellers will attempt to pass flooded vehicles
as undamaged to unsuspecting and careless buyers – and there will always be
cars with undisclosed accident damage on the market. Now, more than ever, buyers
have tools to protect themselves from unseen or covered damage like getting
a detailed vehicle history report like CARFAX and look for certified used cars.
Other tips to avoid buying flooded cars:
•First, buy from reputable dealers.
•You can find great vehicles buying from private sellers but beware of “curbstoners” – people
who sell numerous cars claiming to be private sellers and therefore avoid basic
government oversight and no Lemon Law coverage.
•Avoid auctions – online or otherwise – unless you are experienced with them.
•Check to make sure the vehicle identification numbers (VIN) match on the door
sticker and the dashboard tag.
•Carefully inspect the inside of the car looking for watermarks on door panels,
radiators, wheel wells and seat cushions.
•Look for rust on unusual places like door hinges, hood springs, under dash brackets,
trunk latches.
•Look for water and moisture inside exterior lighting.
•Beware of cars with new or mismatched upholstery.
•If the car has is a paper air filter, check it – if it has water stains the
car has likely been flooded.
•Ask the seller if the vehicle has had flood damage – sounds simple, but answers
like “not to the best of my knowledge” or “the previous owner didn't tell me
of any flood damage” are red flags. Get the answer in writing with the bill of
sale.
•Ask to see the title – if it is not stamped “flood” or “salvage”, get the car's
history to find out if has come from a recently or previously flooded area of
the country.
When buying your next car, here are a few tips to keep in mind.
1. Do your
homework
There used to be a common misconception among car buyers that when purchasing
a used car, owners inherit the previous problems of that vehicle. That
is no longer the case. With certified used vehicles and services like CARFAX
Vehicle History Report, consumers can rest assured they are buying a reliable
vehicle.
In addition, contact your local dealer of that manufacturer, and ask
the service department to run the vehicle identification number (VIN)
to see if there are any recalls or technical service bulletins that may
or may not have been performed. Also ask if there were any major repairs.
If you can get receipts for any maintenance or repairs to this vehicle,
it will help you decide whether the car was taken care of or just driven
hard.
2. Newer is generally better.
Newer models - those less than six years old - generally offer updated
safety features and better crash protection. That means the car
will sacrifice itself for the driver, and not the other way around.
On any model, however, look for anti-lock brakes, dual front air
bags and side impact airbags.
3. Know all the facts.
If you are purchasing a vehicle with an insurance check, make
sure you know all the details. Call your insurance agent before
you purchase a new car to review the exact compensation amount
for your destroyed property.
About Lauren Fix
The Car Coach
Lauren Fix, the Car Coach®, is a nationally recognized automotive
expert in car care, repair, safety issues, buying and selling new
and used cars and trucks, and driving skills.
She has written articles and been quoted in USA Today, Good Housekeeping,
Redbook, Woman's World, Esquire, First for Women, InTouch and Self. She
is a contributing editor to Motor Trend, Truck Trend, Hot Rod, and Car
Craft. In addition, Lauren is the Automotive Editor for YourLifeMagazine.com
and author of two books, Driving Ambitions: A Complete Guide to Amateur
Auto Racing and The Performance Tire and Wheel Handbook.
Lauren's broadcast experience includes Oprah, The View, TODAY, The Early
Show, CNN, FOX News, MSNBC, Inside Edition, ESPN, Discovery, Speed, and
NPR. Lauren is the host of Talk 2 DIY Automotive, on the Do-It-Yourself
Network (DIY), providing in-depth demonstrations and tips for auto repair.
A member of the Society of Automotive Engineers (SAE) since 1975, Lauren
is an ASE (Automotive Service Excellence) certified mechanic. She inherited
her love of all things automotive from her father who owned a brake remanufacturing
business. Lauren has been fixing, restoring and racing cars since the age
of 10.
She has a bachelor of science in Marketing from The University of Buffalo.
The Car Coach® / Car Smarts®
80 Rotech Drive
Lancaster, NY 14086
www.laurenfix.com
Lauren has been the spokesperson for the Car Care Council for four years.
"Be Car Care Aware"
April is National Car Care Month
Look For Lauren's new book - "Lauren Fix's Essential Guide To Car Smarts"
©2006 AskPatty.com, Inc.
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