The hurricane season of 2005 left us with some legacies as a country we really hadn't seen before, at least in modern times. For example, did you know that at least 500 defendants in cases such as drug, theft, and assault have simply been let go because evidence and other supporting documentation for their cases was either damaged beyond use or simply lost altogether during the flooding. The criminal system has been paralyzed by this and the fact the because so many people have left the area, that there simply isn't the legal staff and witnesses to go to hearing, trial, etc...pretty scary.
Another situation borne out of the aftermath of hurricanes Rita and Katrina is the flooding of the used-car market with as many as 500,000 hurricane damaged vehicles, the majority of which were completely or partially underwater for as long as a week or more. The problem was of obvious concern right away during the initial clean up, yet it has taken until now for lawmakers to introduce actual legislation requiring that information be available to consumers about vehicles that have been declared a total loss.
The problem is that many of the affected vehicles were brand new sitting on (or floating away from) a dealer's lot. Because the vehicles were new however, once sold through a wholesale auction or claimed from the insurance company, the cars could be cleaned up and appear like nearly a new vehicle without the obvious wear and tear of a used car. Unfortunately, modern vehicles are not designed to submarine for any amount of time as they are more computer laden today then ever and as these are the most susceptible to corrosion and damage from water, a vehicle may experience a host of different electrical and component issues as time goes on.
The cars are not only a ticking time-bomb from a service and repair point of view, but may also be a hazard to its owner and other drivers as safety items like air bags and abs brakes can't not be expected to work properly. By now however, these vehicles have likely made their way around the country and with potentially a few more miles on the odometer, seamlessly joined the rest of the used-car population. Incidentally, more than two used cars are sold in the US for every new vehicle, some 44 million in 2005 alone, so displacing 500,000 or so may not be so difficult.
The legislation is still being kicked around by Congress and will hopefully be passed after the break as it would help protect consumers down the road for hurricane, but also other vehicles deemed a total loss from showing up on a used lot.
To read an article about the legislation, click here.
To review the NADA tips on spotting a flood-damaged vehicle, click here.
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