Water damaged automobiles flooding the market

In my capacity as the owner of an import car dealership, I am often amazed at the levels some wholesalers will go to in order to cover up damages to vehicles. As any reputable reseller will tell you, finding the best vehicles is not only a matter of knowing what to physically look for, it's also a matter of knowing how to spot title and ownership oddities. Lately, I have noticed many wholesalers in possession of autos that were originally sold in the Louisiana and Mississippi areas. For some reason, these vehicles had their titles transferred to wholesalers from states far away. While this isn't completely uncommon, it does raise a red flag when you consider the recent natural disasters that have occurred on the Gulf Coast.

Dealerships need to be aware of the opportunity for unscrupulous parties to effectively "launder" the titles of these vehicles. As a result of Hurricane Katrina, many vehicles were likely paid for via insurance claims against flood damage. These vehicles are finding their way back into the market. While there is nothing inherently wrong with re-selling a designated flood damaged vehicle, there is something entirely wrong with reselling a flood damaged vehicle under the guise of it not having been damaged.

Being in the industry, I have heard both sides of the argument. Many wholesalers will tell you that flood damaged vehicles are often appropriated by insurance companies as "totalled", when in fact they may have never been submerged in water at all. My answer to that is to say that any business which values its customers and strives to maintain integrity and honesty would never sell a product they are unsure of. In other words, I'm not willing to take a chance with my business and reputation at stake, nor am I willing to gamble with someone else's money. That's exactly what selling a flood damaged automobile is: gambling with your customers money.

Flood damaged vehicles can have corroded electrical systems that are primed for failure, unseen rust damage, and a variety of other problems that can surface at a later time. My advice to dealerships is to use every resource at their disposal to find out the history of the cars they are purchasing and avoid flood damaged vehicles, unless you plan to sell them as such.

When buying used car is not a good idea

Looking for the cheapest car through buying used cars is a smart practice. However, when the buyer is truly saving and is on a tight budget, buying a used car should not be immediately decided upon and should take a lot of deliberation. This is to avoid throwing away your hard-earned money.

Therefore, for people who already know something about buying used cars but wish to know when not to buy them, here are some pointers that may help people in their decision-making:

1. Buyers should be wary of buying used cars from owners that do not have complete and pertinent documents.

This could mean a lot of negative things and the buyer is the only one who will be at the losing end. Documents are crucial especially if the car is second hand. It is the only solid guarantee that a buyer can get hold of when buying used cars.

If this is the case, then, the buyer might as well not pursue the deal.

2. Buyers should consider their budget

If the reason why the buyer is opting to purchase a used car is the budget, then it should be the same reason why the buyer should be careful and meticulous in choosing a used car.

Hence, if the car needs a lot of maintenance, repairs, and other modifications, it is best not to buy that used car.

3. If the buyer is not comfortable after test-driving the car, then, it is best not to buy it.

There are instances wherein some people tend to opt for used cars because of the model of the car being sold. It is their dream car and there is no other way they can purchase them but to buy them second hand.

However, if the buyer was not comfortable with the car after test-driving it, then, it would be better not to pursue the deal, even if it means the world to the buyer to have that car.

The bottom line is that buying used cars should never be the sole alternative to people who cannot afford to buy new ones. This means that people should value the process of choosing a used car like what they would do when they buy a new car.

After all, it is their money that will be put to risk that is why it is extremely important to consider all the factors in order to have the best buy ever.