The Expert Podcast

Recent Floods: California experiences floods, similar to Florida's Hurricane Ian, leading to more flood-damaged cars in the market.

Hidden Damage: Unlike collision cars, flood cars often don’t show obvious physical damage. They may only have a musty smell or warning lights due to corroded sensors and electronics.

Auction Risks: When buying flood cars at auctions, it's easy to overlook the damage since many auctions are now online. Buyers can end up overpaying without physically inspecting the vehicle.

Title and Inspection Issues: Even if the car doesn’t need physical repairs, it must pass a specific salvage inspection. These inspections check crucial components like airbags, sensors, and wiring, which may have suffered water damage.

Expensive Repairs: Common repairs such as replacing wiring harnesses or airbags can be costly, sometimes exceeding the car's value.

Certificate of Destruction: Some flood-damaged cars are sold with a junk title or parts-only certificate, which means they can never be legally titled or driven again.

Insurance Liability: Insurance companies may label cars as junk to avoid future liability, even if the car doesn’t seem damaged now.

The Parts Game: Parts companies are the ones profiting from these cars, as the individual components can be sold for a significant profit, even though the vehicle itself is not viable for road use.

Final Advice: Buying a flood-damaged car for resale or road use is usually a losing deal. It's better to consider parts sales if you have the facilities and network for it.