YOUR MONEY


Waterlogged Wheels Avoid buying a used car that’s been damaged in a flood. :: BY GREG BROWN C


ar buyers face a perfect storm these days. Auto loans are costly


thanks to high interest rates,


and a stubborn microchip shortage has pushed up the price of a new vehicle by 25% from just a few years ago to an average of $50,000 now. Higher prices have forced buyers


into the used market, where low inventories make it hard to find a bargain. The typical used car now costs


$27,147, according to Kelley Blue Book, a price most pre-pandemic buyers would associate with a new car. Add to the confusion a nearly


endless parade of severe weather/ flooding events around the country and the risk for buyers is clear: Purchase a used car if you must, but beware. Flood-damaged vehicles can be resold, and they often end up on lots


78 NEWSMAX MAXLIFE | MARCH 2024


nationwide with little immediate clue about their potential problems.


OMINOUS INSURANCE FORECAST


In 2022, Hurricane Ian in Florida damaged 358,000 cars, according to Carfax. Before that storm, at least 400,000 flooded cars already were on the market. Since Ian, there have been


devastating floods in California, New York, Vermont, and across the Southeast, Midwest, and elsewhere. “Flood-damaged cars are something that most of us don’t think about,” says auto expert Lauren Fix, who writes the Car Coach column for Newsmax.com. “Every time a hurricane or flood


impacts an area of the country, automobiles are damaged.” While insurance companies may


call a car “totaled” for their purposes, that doesn’t necessarily mean the car


is scrapped, Fix warns. Many of them sit in fields and


grow moldy. Airbags, brakes, and seat belts can fail, and cars can even stall in traffic. “These vehicles aren’t safe on the


roads,” she warns.


WASHED — BUT NOT CLEAN While some flooded cars are junked, too many simply go to auction and get resold in a different state, a process known as “washing” a title, Fix explains. Some states require a title to say


“salvage” if the car’s repair costs exceed its retail value. But the definitions vary from state to state. In certain states the repair cost ceiling is lower, perhaps 75% or 80% of the car’s value. Depending on your state, a car


that has been repaired can get a title that says “rebuilt” or “prior salvage,” but it’s often unclear if the issue was


JEFF MCCOLLOUGH/SHUTTERSTOCK


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