Flood cars from America: the auto market's horror stories

Natural disasters often cause damage to Americans’ vehicles, especially in the southern states. Vehicles that have suffered water damage to some extent are also a common occurrence. Since property is usually insured, insurance companies pay out claims; however, to recoup additional losses, the damaged vehicles are put up for auction at a reduced price, which attracts buyers. Thanks to this, a “flood-damaged” car can get a chance at restoration and a new life, sometimes outside the United States. Ukraine is considered one of the leading buyers of such cars. Some bargain hunters specifically go to auctions to buy American premium, luxury, or business-class cars. But sometimes buyers are sold a flood-damaged car without their knowledge. In this article, we’ll try to figure out whether it makes sense to buy a flood-damaged vehicle, how to avoid buying a “pig in a poke,” and what to consider when purchasing a used car from U.S. auctions. 

Important! According to data from the State Statistics Service, as of the third quarter of 2019, more than 32,000 cars from North America had entered the Ukrainian automotive market. These imports included used cars of a wide variety of makes and models. The total value of these vehicles exceeds $352 million. Flood-damaged cars account for 10–15% of the total. And this trend continues.

Which is easier: to write off or repair a “flood-damaged” car?

Vehicle owners in the U.S. aren’t particularly concerned with the question of whether to repair or get rid of a problem car. If, after assessing the damage, experts determine that repairing the car would cost more than paying the owner full compensation, it is easier for the insurance company to pay the affected customer and then put the car up for sale at auction. However, a certain percentage of used cars are sold without going through insurance companies. Since the law prohibits private individuals from selling used cars at auction, the owner has no choice but to sell the car to a dealer. 

Important! Flood-damaged cars are usually sold at rock-bottom prices. This is often exploited by unscrupulous dealers who purchase such vehicles without an appraisal report. After appropriate pre-sale preparation, the cars look brand-new and “resurface” on the Ukrainian car market. 

What Ukrainians Who Buy a “Flood-Damaged Car” from the U.S. Might Face

Vehicles with a “tainted” reputation come with a whole host of problems that will fall on the new owner’s shoulders. The least of these is a damaged interior. Among the main problems are the following:

1. The first things to fail are the electrical system and related components. The extent of the damage depends on the chemical composition of the water that has come into contact with the car. Saltwater has the most damaging effect. Corrosion causes contacts to deteriorate, significantly reducing their reliability. 
2. A car that has been submerged in water becomes heavily soiled. Therefore, the vehicle must not only be washed but also thoroughly cleaned. Sand is particularly dangerous—due to its fine particle size, grains of sand can become lodged between connecting components. Bearings, shock absorbers, CV joints, and other moving parts are most often affected. Sand is hard to detect in these areas, but it leads to rapid wear and failure of critical structural components, and such repairs are very costly. To prevent this, you’ll need to remove all parts and clean them thoroughly. 
3. A distinctive odor in the cabin is primarily the result of stagnant water and upholstery materials rotting. Usually, the seller removes the odor themselves during the detailing process. In such cars, the interior has a strong chemical smell, as the upholstery is practically saturated with them. But sometimes this task falls to the buyer. 

This list can also include the replacement of various parts and consumables: gaskets, lubricants, and so on.

Important! Ultimately, the “happy” buyer of a used vehicle quickly comes crashing back down to earth when they hear the verdict from the auto service specialists and the amount needed for repairs. At the same time, the car may look well-preserved on the outside. 

How to Spot a Flood-Damaged Car from the U.S.

Car owners who don’t want to fall victim to scammers often wonder how to identify a “flood-damaged” car. But even experts can’t always do this. In some cases, it’s difficult to tell just by looking at the car. The first step is to check the following:

1. The documentation will reveal exactly where the car was manufactured and in which region of the United States it was used. This information will help you assess how frequently the region is subject to flooding and other natural disasters. If there are no paper documents, you can run a check using the VIN number. This will give you the vehicle’s complete history from the moment it rolled off the assembly line. 
2. No seller will be able to remove mold completely. It’s impossible to do so with any method. To find it, you need to inspect the interior. Most often, it can be found under the floor mats, between the seat cushions, in the armrests, and in other hidden areas.
3. Cracked leather indicates not only that the material is old but also that it has been exposed to moisture. If the model is relatively new but has this defect, it means the car was submerged in water. Additionally, water always leaves streaks on leather, and these are very difficult to remove. 
4. Corrosion can be concealed, but scammers won’t thoroughly inspect every part—only the ones that are immediately obvious. To find them, you need to examine hidden seams. 
5. Prolonged exposure to water—especially saltwater—always leaves cloudy streaks on the paintwork. These streaks can even indicate the depth to which the vehicle was submerged. 

Experienced sellers often install new components and headlights in such vehicles. This should immediately raise the suspicion that there may be problems. 

Keep this in mind! Sometimes flooded cars can be repaired and used again. If you’re buying such a car at a U.S. auction, it’s best to follow a few recommendations. It’s best to source the car from inland states, as freshwater causes less damage than seawater. Additionally, be sure to immediately replace all filters, fluids, and the exhaust system. Having the car inspected at a service center will help verify that no salt or sand has accumulated in the systems. To minimize risks, it’s best to use the services of specialized brokerage firms. Their experts inspect the car based on its lot number directly at the auction parking lots. 

How to Avoid Buying a “Flood-Damaged” Car

Since sales of used cars are gaining popularity in the U.S. due to their high profitability, many flood-damaged cars are also being shipped abroad. That’s why Ukrainian drivers often try to find out how to avoid falling for this scam and prevent such a purchase. The simplest solution to this problem is Bex Auto. Our company serves as the official Ukrainian representative at American auctions. We have extensive experience and have earned our customers’ trust over the past 12 years. We thoroughly review a vehicle’s history and conduct a comprehensive inspection. Working with us is the safest and fastest way to purchase a used car from the United States.