Tips on Buying Cars: what`s the meaning . . ., hurricane katrina, central computer system

Question
When you read in an electronic auction add "Flooded/water" does it means the car is just soiled on carpets and upholstery or it means the engine  and/or electronic parts might be damaged ? Thanks for you advise.

Answer
Mike,

That is a very good question.  Thanks for asking.  "Flooded/water" can mean several different things.  It really just means that the vehicle has had a flood claim or water claim filed with an insurance company.  This is very common after Hurricane Katrina and the floods with that year.  It can mean that the vehicle has had some type of flood damage and it is up to the seller to explain the severity of it.  I will tell right now, do your research because I can assure you that the seller won't tell you everything.  The vehicle's engine and electronic parts including the onboard computer system very well could be damaged.  Remember that in most vehicles the Central Computer system is located on the passenger's side in the floorboard, so if it is just the carpets, then the computer might be damaged too!  That is only if that particular model puts the computer system in that spot.  It could be that the vehicle has minor damage and nothing is really wrong with the vehicle.  I would caution you and any other perspective buyer of a flood/water vehicle to do some serious research and understand you are getting a great deal on that vehicle because you will have a branded title.  This means you will have a title to that vehicle that states it has flood damage or that it is a salvage vehicle.  That literally makes the vehicle worth less that half of its original value to any other mainstream automobile organization.  Most lenders will tell you that they will not finance branded title/salvage title vehicles in any shape form or fashion.  I would stray away from it if you have any intention of selling that vehicle in the future.  Understand most companies will not warranty anything on that vehicle.  If you are looking at a vehicle simply for a small commuter vehicle and you don't care about resale or longevity of the vehicle, then go for it, just do your research.

Thanks for your question Mike!,

Jeremy