Karchek - Scams - Don't buy a wreck!

============================================= by David Mueller Car and Driver Published on MSN.com Thousands of Hurricane-Damaged Cars and Trucks Heading Back to Market Almost half a million cars and trucks that were damaged in Hurricane Harvey and have since been sitting in impromptu holding lots are set to head back out onto the roads or into scrap yards with salvage titles. And thousands more that were uninsured are out in the wild and could be headed anywhere, with no information stating they've been in a flood. The National Insurance Crime Bureau (NICB) said more than 422,000 such insured vehicles have been parked at salvage locations. For comparison, there were about 300,000 vehicle claims from Hurricane Katrina and some 250,000 from Superstorm Sandy. Another 215,000 vehicle claims have been filed in the wake of Hurricane Irma in Florida. About a million vehicles total are expected to have been damaged by Hurricane Harvey alone. Research In Texas, makeshift holding areas have been filled with thousands of such vehicles as insurance companies decide what to do next. "Flooded vehicles have finally stopped arriving at the Royal Purple Raceway east of Houston," the NICB said in a release, adding that there are about 23,000 cars and trucks at that site alone. The insured vehicles will be processed and rebranded with a salvage title and then either sold at auction for parts or crushed and sold for scrap, the NICB said. The cars and trucks will have their VINs entered into the NICB's VINCheck database, where consumers can see if a vehicle has been damaged or branded as salvaged. The VINs are also put into the National Motor Vehicle Title Information System. Of course, the same is not the case for the thousands of uninsured vehicles that were damaged in the storms. The Insurance Council of Texas has said about 15 percent of Texans drive without any insurance. And the NICB has acknowledged that while owners of uninsured vehicles should have new, branded titles that denote flood damage, "many flooded vehicles that weren't insured will be cleaned up and sold with no indication of any damage." This is where some due diligence on the part of the used-vehicle shopper can help. If you're in the market and want to make sure a car or truck is not a flood survivor, some recommendations include checking the vehicle's carpeting for water damage, looking for rust on screws or metallic bolts that typically wouldn't get wet, and seeing if there are water stains on seatbelts or other interior upholstery. Another area to check for water damage is under the spare tire. It's also good to look for mud or other signs of earthy residue in the engine compartment. If interior and exterior lights look foggy, it's a sign the car or truck could have spent some time submerged in water. The smell of mold or an otherwise musty odor is also an indication the car may have been flooded. In short, if the vehicle's history report seems questionable, use your eyes and nose, and then your best judgment. ============================================= Published on jalopnik.com Posted on MSN.com Sept 5, 2017  Here's what happens to all the flooded cars after hurricane Harvey There are estimates that as many as half a million cars were damaged from the flooding caused by Hurricane Harvey along the Texas Gulf Coast, and many people are wondering what happens to those cars now. While some believe that they will be dragged off directly to junkyards or maybe even crushed, the process of recovering these vehicles is a lot more complex. Cleanup efforts have already started and insurance adjusters, truck drivers, and auction representatives are already on the ground and working on processing these cars. Let’s jump into the process and see how all of these cars will be moved from the street to their final destinations. We’ll start off with cars that have comprehensive insurance coverage as most will follow a similar path. Once owners report that their cars have been flood damaged, the insurance companies will send adjusters out to inspect the cars on a first-come, first-serve basis. The insurers have contingency plans for large disasters such as Hurricane Harvey and were able to put them into effect as soon as it started making landfall. Most insurers were assembling mobile teams of adjusters as early as the 27th and many will set up mobile claim centers as soon as areas are deemed safe. Since there are so many affected vehicles the adjusters will be processing them in bulk and mostly verifying that it is the correct vehicle and noting the extent of the damage to see whether a vehicle can be repaired or if it will be declared a total loss. Once they’ve declared the vehicles a total loss, they will need to be transferred to a contracted auction facility. The transport is usually handled by local tow truck companies that are contracted but due to the large amount of cars that need to be handled, tow truck drivers are coming from all over the country to assist in the removal efforts. Once the vehicles are picked up they will go to a yard managed by one of the two major salvage auctions, either Copart or Insurance Auto Auctions. Both of the auction houses have multiple yards around Houston, but they are filling up quickly due to the large amount of cars that need to be handled, so they are leasing space from local businesses in order to store the cars until they can be auctioned off. Copart has contracted with Royal Purple Raceway in Baytown, Texas in order to store cars and they have announced that the drag strip will be closed until the end of the year due to the quantity of cars that will need to be stored there. IAA has set up a similar offsite location at an industrial lot off Interstate 90 northeast of Houston. Each of the companies have already collected more than 10,000 cars and space will be at a premium as the the days go on. The lot workers at each auction have already started taking pictures and cataloging the cars in order to prepare for auction dates which will start as soon as the claims are processed and the titles are received. Once the paperwork is in order and auction dates are held, buyers will go onsite or bid virtually from all over the world. These vehicles will be bought up by local salvage yards, used car dealers, exporters, metal recyclers, and even individuals who pay a membership fee to bid or use a broker. Once the sales are completed, some will be repaired by people who will try to flip them or by exporters who will send them to another country with less strict title laws while a majority will likely end up as parts at a junkyards. None of these cars are likely to be crushed until all useful parts have been pulled out of them which could be months or years away. Luckily, since these cars will go through multiple reportable points, most of these events should show up on a vehicle history report. The cars without comprehensive insurance will follow a variety of paths. Since the owners have no recourse, many will try to dry them out and repair them without ever reporting that they were flooded. These are usually going to be older, paid-off cars since most banks require a comprehensive policy when writing a loan. The cars that end up repaired are the ones to watch out for in the future. Inspect used car purchases closely because there will be no record that they were flooded since the insurance companies and auction houses will never see them. Uninsured and under insured cars that are not repairable will likely be sold for around scrap value to tow companies that will be on the hunt for vehicles that have not been picked up and will meet their insured counterparts at junk yards where they will be picked apart for anything useful before they are crushed. The recovery operation for these cars is a complex but well-oiled machine that has already processed tens of thousands of cars and is likely to process hundreds of thousands by the end of the month. The adjusters, truck drivers, and auction lot workers will be working long days and nights in the coming weeks in order to clean up the streets of Houston and help people to move on into new transportation but the unscrupulous flippers are just getting started, so keep your eyes out for flood-repaired vehicles that will be showing up on the market shortly. ============================================= Published by Forbes By Jim Gorzelany, Contributor Posted on MSN.com 8/30/2017 How to avoid getting stuck with a flood-damaged car An estimated 500,000 cars are expected to endure flood damage from Hurricane Harvey, with perhaps half of them returning to the used-car market and sold to unsuspecting buyers. (Photo by Scott Olson/Getty Images) With hurricane/tropical storm Harvey continuing to pound portions of Texas and Louisiana, the total extent of the damage is still unclear. Already, CNN estimates around 30,000 people are in or are seeking emergency shelter and nearly half a million are anticipated to ask for federal assistance. What’s more, Cox Automotive estimates that close to a half million cars will have to be scrapped due to flood damage. These include both older models and what Edmunds.com estimates could be as many as 200,000 new-inventory vehicles left underwater in storm-ravaged areas. Research In addition to the obvious damage done to upholstery and carpeting, flood water is a corrosive and abrasive mixture of water and dirt (and sometimes salt) that works its way virtually everywhere within a vehicle and can especially damaging to electronics, lubricants, and mechanical systems. Extensive disassembly may be needed for a thorough cleaning and reconditioning. Depending on its make, model and age, the cost to restore a flood-damaged vehicle could exceed its value, in which case the owner’s insurance company would consider it “totaled.” Such vehicles are legally bound to have their titles labeled as being salvaged. They’re usually sold at auction to auto graveyards and vehicle rebuilders, and are typically scrapped and recycled, often with some components harvested and reconditioned. But as is the unfortunate case following major storms, as many as half of them are likely to be cleaned up, repaired, and sold to unsuspecting buyers, according to the title-search company CarFax. Some will be repaired and sold with titles that are clearly marked as having been “rebuilt” – in which case it’s buyer beware – but many others will carry illegally altered titles. And still more that were either not insured or weren’t damaged enough to be declared as total wrecks will be spiffed up and offered with otherwise clear titles. As it is, CarFax says over 271,000 flood-affected cars remained on the nation’s roads last year, and that number is expected to swell considerably in Harvey’s wake. Ironically, CarFax cited Houston as being home to the most flood-damaged cars of any major city in the U.S. during 2016 with an estimated 19,314 formerly waterlogged models still being driven. Used-car shoppers should thus be on the alert in the weeks and months ahead for water-damaged cars being offered for sale by private owners or on used-car lots that should have otherwise been relegated to the scrap heap. According to CarFax, flood-damaged cars are most likely to turn up in states affected by coastal and river flooding, though they can find their way into buyers’ hands virtually anywhere within the contiguous 48 states. For starters, it’s critical to check the title history of any pre-owned vehicle you’re considering by running its VIN (vehicle identification number) through CarFax, Experian’s Auto Check or the National Insurance Crime Bureau’s VinCheck to see if it’s been reported as having been flooded or salvaged. Numerous sources report flood and damage information to such services, including insurance companies and state Departments of Motor Vehicles. In addition, it’s always a good idea to have qualified mechanic inspect a pre-owned vehicle before signing a bill of sale, both to gauge its overall mechanical condition and to determine if it in fact has hidden water damage. But an astute used-vehicle shopper should keep an eye out for sure signs of flooding while still in the process of “kicking the tires.” That means closely examining the vehicle’s interior and engine compartment for evidence of water and grit. Look for signs of recently shampooed or replaced carpeting or freshly cleaned upholstery that may have been performed subsequent to flooding. Pull up a corner of the carpeting (both in the passenger compartment and trunk), and check for water residue or stain marks, signs of rust, and/or evidence of mold or a musty odor. See if there’s water still hiding in the dashboard and interior storage cubbies. Check under the dashboard for brittle wiring and evidence of dried mud and other deposits; look for rust on screws in the center console or other areas that might have been submerged. Open the hood and look for mud, water residue, or rust in crevices, behind wiring harnesses and around small recesses in and around components. Look for water or signs of condensation in the headlamps and taillights, on the instrument panel gauges, and even within the overhead dome light. And be sure to check the wheel wells, and around the doors, hood and trunk panels for evidence of rust. If you suspect there’s been some degree of water damage, we’d suggest walking away from the deal, no matter how attractive the asking price might be. Though it may look good and start up just fine, a submerged car could be rusting away from the inside, and may take weeks or even months for some flood-caused problems to surface. Buyer beware, indeed. ============================================= Published: Saturday, March 15, 2003 Copyright © 2003 The Daily Herald Co., Everett, Wash. State troopers crack alleged car title scam By Cathy Logg Herald Writer EDMONDS -- It looked like any other truck sale. The salesman and customer discussed the price. An offer was made. The salesman counted the money. They signed the papers and shook hands. The salesman thought he had just clinched another sale. For the Washington State Patrol, however, the sale wrapped up more than three years of undercover work on an alleged organized crime ring that overcharged vehicle buyers millions of dollars and left them with salvaged vehicles worth half their purchase price. Troopers on Friday broke up the alleged ring with the arrests of two people in Snohomish and King counties. A third suspect was arrested about a month ago, and more arrests are pending. Authorities say the ring rebuilt wrecked cars and sold them for about twice their true value after a licensing agent "washed" the vehicles' titles to remove information that the vehicles had been totaled. One alleged member of the ring admitted having sold as many as 1,000 vehicles. About 40 auto-theft detectives from the State Patrol, Bellevue police and the National Insurance Crime Bureau served search warrants simultaneously Friday after an undercover detective purchased a 1999 Ford Ranger pickup that the dealer failed to identify as salvaged. When the sale ended, the black-clad state troopers rushed in with guns drawn and ordered the salesman to lie face-down on the floor. He turned white and appeared shocked, investigators said. The truck price, including tax and license, was $10,500. But the salesman told the detective he could list it in the paperwork for only $6,000, saving him about $400 in taxes. He told the detective the truck's title was clean, troopers said. The case is expected to be prosecuted under state racketeering laws, Lt. Grant Hulteen of the State Patrol said. Washington state ranks third in the nation in auto theft, and this investigation should help reduce that trend, patrol Chief Ronal Serpas said. About 123 vehicles are stolen each day statewide, or one about every 11 minutes, said Cliff Chezum, a retired trooper now working as a vehicle identification specialist for the insurance crime bureau. In 1996, thieves stole about 75 vehicles each day. Investigators likened Friday's sting to winning a gold medal. Originally started in 1999, the investigation ended up on the back burner for a while, but was revived in July. Officers still face months of work determining if stolen auto parts were used in rebuilding the vehicles, and how many "washed" vehicles were sold. A washed title enables thieves to sell vehicles -- particularly high-end ones such as Camaros, SUVs and luxury cars -- for up to twice their value. So far, investigators have confirmed that 130 vehicles with altered titles were sold. The owners of those vehicles will be notified and instructed on where to get more information, Hulteen said. The problem, however, could affect thousands more people. Cars weren't just sold from those two car lots, but could have been sold privately or at other car lots or even out of state, detectives said. In addition to the economic loss to owners, the state loses a significant amount of tax money, and some of the vehicles might be dangerous to drive. "Sometimes, these cars are put together very poorly, and sometimes the air bags aren't installed," Hulteen said. This is the first case in Washington in which an organized ring worked with the cooperation of a licensing agent, said Brad Benfield, a state Department of Licensing spokesman. The agent allegedly accepted $30 to $500 per contact to alter the vehicle titles. Licensing officials declined to identify the woman or the agency she worked for, but said all the work generated by that agency is being monitored closely by licensing officials in Olympia. The department this year has asked the Legislature for $309,000 to match a federal grant to purchase a national vehicle database that would track vehicles "from birth to death" and catch attempts to alter titles, Benfield said. To avoid being sold a car with major problems, detectives urge consumers to do their own research using the car's vehicle identification number (on the dashboard) with a service such as Carfax (www.carfax.com), which tracks vehicles' histories, and to check inside the driver's door for a salvage sticker. Reporter Cathy Logg: logg@heraldnet.com

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