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).
- Title-washing is a type of crime that converts a salvage or branded title into a clean title. This can help shady sellers hide the fact that they’re selling a flood car.
- Check if the car you’re buying was damaged in a flood by pulling online reports and by checking for signs like water lines and nasty smells.
- Flood cars are hard to repair. If it’s been declared a total loss, you can’t get insurance until you prove the car is roadworthy and get a rebuilt title.
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, more flood-damaged vehicles 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 a booming business.
Salvage/branded title: An insurance company has deemed the car a total loss because the cost of repairing is more than the car is worth. After the car is totalled, you can choose to keep it, or you can transfer the title to the insurance company. Either way, the car will be required to have a salvage title.
Flood title: A flood title means that the car sat in high enough water that it reached the engine compartment. Note that most states do not issue flood titles. Most of the time, both flood cars and total loss vehicles get a salvage/branded title.
Rebuilt title: A rebuilt title indicates that the car once held a salvage title but has been repaired and is roadworthy again.
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 vehicle identification number (VIN) through some of these online tools.
| Online tool | Standout feature | Pro | Con |
|---|---|---|---|
| VINCheck | Is a product of the National Insurance Crime Bureau (NICB) | Free | Only works if the car had insurance and the damage was reported |
| CarFax | Can see vehicle’s full history, including past claims and maintenance records | Is one of the most comprehensive vehicle history reports on the market | One report costs $44.99 |
| Bumper | Provides easy-to-understand AI-powered reports | Get up to 50 reports with a one month membership | Is a subscription service, and one month is $27.99 |
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 of flood damage
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 check the vehicle.
- 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 a 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.”
According to a recent LendingTree study, Louisiana, New Jersey and Virginia are most at risk for coastal flooding.
Trust your gut
Buying a used car from a private party private-party car (rather than a dealership) can be a great way to snag a deal. But whatever you do, 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.
You should also be wary of buy here, pay here car lots. These specialize in older models that may not be in peak condition. If you think buy here, pay here is all you can qualify for, check rates on a bad credit car loan. Some lenders (like CarMax) don’t have a minimum credit score requirement.
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Ask the expert: Is it ever worth buying a flood-damaged car?
“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.”
– Rob Bhatt, staff writer and licensed insurance agent
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.
Frequently asked questions
Flood-damaged cars are repairable, depending on the extent of the damage. If the water didn’t make it to the engine, you could be OK, but the project may be expensive. If you don’t have to replace the upholstery, it’ll still need deep cleaning.
If the water did get into the engine, seriously consider whether the car is worth it.
It’s not illegal to sell a flood car, as long as the seller discloses the damage.
If your car insurance policy includes comprehensive coverage, your insurance company will either pay to repair or replace your vehicle, or it will declare it a total loss. You can keep the car if it is a total loss, but it will get a salvage or flood title. This will make it harder to insure, and its value will plummet.
If you don’t have comprehensive coverage, then you’ll have to pay for repairs or buy a car out of pocket.
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