We’ve spent some time talking about what happens to Hurricane Sandy and Hurricane Katrina damaged vehicles. But if you have not read those posts, here is a quick snapshot. It’s an unfortunate and unnerving fact that there are thousands of these vehicles from these Hurricanes that are making it into our dealerships and being resold to our consumer market. There is no warning and the title has been washed. Legislation has been trying to pass a law requiring insurance companies to be more honest in their assessment of these vehicle’s, meaning to not pass these vehicle’s as anything other than totaled. State Farm has since entered an agreement as part of a plea deal after having bilked over 30,000 into buying these horribly damaged vehicle’s. When I say thousands, more than 250,000 from Hurricane Sandy alone. The fact that there are dishonest sellers, including dealerships, is unsettling. It’s not just the dealerships, it’s also happening in the private sector. No matter where you go, or who you talk to, you must equip yourself with knowledge, and stay informed.
The worse offense is when someone takes one of these vehicles, cleans it up, and then sells it to an unknowing victim. The National Insurance Crime Bureau is most concerned about these type of sales, but it doesn’t stop there. Some of these vehicle’s sat in four feet of flood water and sewage for days, many, many days; leaving the cars moldy and mildewed. These abusers of the law will get titles that have been “Title Washed”, these will buy the damaged cars on the East Coast and then travel to another state whose laws are lax and get new, clean titles. These vehicle’s, nationwide, have got to be scrutinized and caught before there is an unknowing buyer duped by the seller. This is the goal, but in the meantime……..
