January 22nd, 2011 by cheapcar
Flood Damaged Cars For Sale
Flood-damaged cars headed to market
(editor’s note: although this article is some years old, the information is nonetheless still relevant)
THOUSANDS of flood-damaged cars are about to hit the second-hand and auction markets in Queensland.
While most will be advertised as flood damaged, others may be offered for sale without buyers being told of the damage.
About 700 vehicles swamped in Queensland and NSW during flooding last month will be auctioned on Tuesday in Brisbane with about 1000 more in Townsville, of which 400 will be auctioned on Monday.
These are the first of thousands of written-off flood-damaged vehicles to hit the Queensland used-car market.
Insurance industry representatives said they had written off more vehicles than normal because of the lack of skilled repairers to work on the damaged vehicles.
The written-off vehicles up for auction will be declared as flood damaged to buyers and will be repairable – but not all will be driveable.
What to check for:
- The glovebox for a tide mark
- Under the seat mountings for signs of water
- Debris in suspension components
- Open the fuse box and check for debris or rust
- Lift seat covers and inspect original fabric
- Get a V-check from Queensland Transport detailing whether a Queensland-registered vehicle was classified as a repairable write-off Source: RACQ
RACQ technologies manager Steve Spalding said buyers should be aware of the repercussions of buying these water-damaged vehicles.
“Unfortunately, many of the problems with these cars won’t become evident until some time in the future, even 12 months or longer down the track,” he said.
He also warned there were several ways flooded vehicles could be offered for sale without the buyer being notified:
• A vehicle can be placed on the “repairable written off” register, repaired, inspected and then taken off the register.
• Dealers and private agents buy flood-damaged vehicles at auction houses are not obliged to pass on this information to subsequent purchasers.
• Flood damaged cars from NSW can be sold in Queensland without any history of damage.
• Private owners of flooded vehicles have no obligation to declare the damage to buyers.
Members of the Motor Trades Association of Queensland must declare a vehicle’s damage under the association’s code of conduct, chief executive Aivars Blums said.
Dealers’ conduct also was governed by the Fair Trading and Property Agents and Motor Dealers acts, he said.
Although he acknowledged leaks in the system, he rejected any further tightening of laws.
“I don’t think you can ever come up with a water-tight situation that totally protects consumers,” he said.
Mr Spalding warned new vehicles damaged in floods would not carry manufacturer warranties.
Be Wary of Flood Damaged Cars For Sale