Attorney General's News Release

January 19, 2006

Nixon reminds used-car buyers to watch out for flood-damage after Hurricanes Katrina, Rita and Wilma

Jefferson City, Mo. — Attorney General Jay Nixon is reminding Missourians shopping for used cars to be on the lookout for vehicles that come from the Gulf Coast and south Florida and possibly were damaged by flood waters.

Just four months after the three hurricanes, Nixon’s Consumer Protection Hotline is starting to receive calls from Missourians who bought used cars from New Orleans and other affected areas. While the consumers haven’t found flood damage, other problems made them suspicious and led them to run vehicle-history reports on their cars. Some were surprised to find their cars had previously been registered in regions affected by the hurricanes and floods.

"Cars that come from these areas don’t necessarily have problems," Nixon said. "But to avoid unpleasant surprises, Missourians should check out a used car’s history before making a purchase."

Since shortly after the hurricanes hit, Nixon and other law enforcement officials have warned consumers that flooded cars from the Gulf Coast and south Florida could be resold in other parts of the country by unscrupulous sellers who don’t tell potential buyers about the damage.

Insurance companies say as many as 500,000 cars could have significant flood damage from the hurricanes. In addition to operating problems, Nixon says cars salvaged from hurricane flood waters could pose a health risk from being submerged for days in stagnant water.

Nixon makes these recommendations for detecting flood damage in a used car:

• Check with the National Insurance Crime Bureau, which posts a database of vehicles with hurricane-related insurance claims at www.nicb.org.
• Run a vehicle-history report before buying the vehicle. These reports are available from www.carfax.com or www.autocheck.com and may include accidents, flood damage or other problems. One report costs about $20, or an unlimited number of reports can be purchased for about $5 more.
• Have your mechanic put the car on a lift and inspect it. A trained mechanic will know how to look for flood damage. Even if the vehicle history is clear, the car could still have problems, so this physical inspection is critical.
• Inspect the interior for upholstery damage or a musty smell.
• Get proof of safety inspection. Missouri law requires sellers to take care of inspections before the sale.
• Get the vehicle title. A car sale is void without a title transfer at the time of sale.

Consumers who have questions about this issue, or would like to file a complaint about a flood-damaged vehicle, can contact the Attorney General’s Office through its Web site, www.ago.mo.gov, or by calling the Consumer Protection Hotline toll-free at 1-800-392-8222.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818