Avoiding Flood-Damaged Cars: What To Know

Buying a flood-damaged car isn’t just aggravating — it can be downright dangerous. Unlike other types of damage, water damage is particularly hard to repair (and easy to conceal). It doesn’t help that some states don’t require that flood cars get a branded title (one of the easiest red flags to spot).

How to spot a flood-damaged car

Carfax estimated that 358,000 cars sustained flood damage as a result of Hurricane Ian (the third costliest hurricane on record). And according to a LendingTree study, flood events rose 28.80% from 2022 to 2023.

As storms get bigger, stronger and more frequent, the more flood-damaged vehicles that will end up on the road. And don’t think that you’re safe from being duped because you don’t live in a flood-prone area. Transporting flood-damaged cars across state lines is (unfortunately) a booming business.

Check the history

A vehicle’s title doesn’t tell the whole story, especially when it comes to flooding. Before buying a car, run its VIN through one (or all) of these online tools.

The National Insurance Crime Bureau (NICB)’s VINCheck will show you if an NICB-participating insurance company has reported the car as salvage. However, this is only accurate if the car had insurance (and the damage was reported) at the time of the flood.

For a more comprehensive history, you could order a Carfax report. Along with insurance claim data, you can make sure the car is properly maintained by looking through its service history. Carfax reports start at $44.99.

Another option to consider is Bumper. Instead of paying for individual reports, Bumper is a subscription service. You can order up to 50 reports per month, giving you some flexibility as you shop for a used car.

There are plenty of other companies that provide similar services. For more information, see the National Motor Vehicle Title Information System’s (NMVTIS) database of approved vendors.

Know the signs

Let’s say you used the tools above and the car in question comes up clean. Now it’s time to give it the sniff test, literally. Also consider getting a used car inspection or having a mechanically inclined friend take a look under the hood.

 Smells musty: A strong basement-like smell is a good indication that the car was previously flooded. The opposite can also be true. If the car smells like the seller went overkill on the disinfectants, they might be trying to mask mildew.

 Brand-new upholstery: A new interior in an older model is fishy. Although this isn’t always the case, why would the seller go through the trouble of replacing the carpets if not to conceal damage?

 Visible signs of water: Look closely at door panels for water lines, and check for fog inside the headlights and instrument panel. Also, look for pooled water under the spare tire in the trunk. If the speakers in the door panel don’t work or are crackly, that could also be a sign of water damage.

 Rust and corrosion: Exterior rust isn’t always a sign of a flood car (as many northerners know). But corrosion on wires and terminals can be. Make sure all electrical components are in good order. Also, check screwheads for rust in places it normally wouldn’t occur (like the dashboard).

 Mud or silt buildup: Flood water contains mud and silt. Once the flood waters recede, the mud and silt remain. Look for grime in odd places (such as the glovebox). The alternator, starter motor, power steering pump and wiring harnesses are important spots to check.

Time your buy

It might not be a great idea to buy a used car after a large storm — even if that storm happened thousands of miles away.

Some states don’t check to see if a car has an existing branded or salvage title before issuing a new one. That means an unscrupulous seller could take a flood car to one of those states and obtain a clean title. Then, they’ll sell it to you without disclosing the flood damage. This is called “title washing.”

Trust your gut

Buying a car on Craigslist (or from a private party by another means) can be a great way to snag a deal. Still, trust your gut.

If the price seems too good to be true, it probably is. Also, don’t buy a car without a title. You need the title to confirm that the vehicle isn’t salvaged (and that it’s not stolen).

But private-party sales aren’t the only place you might encounter a flood car. Be especially wary if you’re going to an in-house financing car lot. These specialize in older models that may not be in peak condition. If you feel like you’re stuck with buy here, pay here, check out a bad-credit car loan instead.

Is it ever worth buying a flood-damaged car?

Rob Bhatt, staff writer and licensed insurance agent

“Buying a flood car is rarely worth the hassle. Even if flood damage is noted on the vehicle’s title, it’s going to be difficult to insure and have a low resale value. But if the seller has disclosed the damage, documented the repairs and is asking a low price, the car might be worth considering. You could also get a bargain on a car if you plan to restore it yourself.”

Buying a car with a salvage title is tricky business. You must be certain that the seller is being honest about all mechanical problems. And you need to be ready to tackle what could end up being a project car.

Also, know that salvage titles aren’t created equal. An insurance company could declare an older model a total loss for something a minor as a busted bumper and taillight. A flood car, on the other hand, is likely to have major issues with its electronic system, brakes, engine and other major components.

Reliability aside, insurance is another thing to consider. Your insurance company will likely only offer you a liability-only policy (if they offer you one at all).

So, unless you’re an adept mechanic, it might be best to steer clear of flood cars and salvage titles. You might be able to find a more reliable car at a price you can afford by shopping on reputable used car websites. And, if you do buy a salvage title, build an emergency fund in case of future breakdowns.