Economical warns against flood-damaged vehicles from Alberta

Waterloo, Ontario — July 2, 2013 — Economical Insurance is cautioning consumers who are looking to buy a used automobile to be aware that vehicles deemed a total loss from the recent severe flooding in Alberta may find their way to market for unsuspecting buyers outside Alberta.

A statement from Economical Insurance notes that History has shown that unscrupulous people buy flood-damaged cars, clean
them up and sell them at attractive, below-market prices. This is not
illegal. What is illegal is hiding the truth of a vehicle’s history.

Economical Insurance warns buyers to be on the lookout for tell-tale
signs a vehicle for sale may have been flooded in Alberta, such as:

  • strong perfumes inside the car to mask odours
  • persistent condensation on the windows
  • water stains on the seats or carpets
  • dampness in the seats or carpets
  • dirt marks in unusual places, or under the carpets
  • the presence of mildew
  • rust in odd places

“Another clue is the date the vehicle was registered in the province the
buyer lives in,” said Rocco Neglia, Economical’s vice-president,
claims. “For example, if an Ontario resident is looking to buy a car
and notices that it was only recently registered in the province, you
need to ask yourself ‘Where did this vehicle come from?’ and ‘What
happened to the vehicle before it was registered in Ontario?'”

A buyer of a flood-damaged vehicle will find that it will likely require
significant and expensive electrical and mechanical repairs which may
only become apparent six to 12 months after purchase.

The safest way to avoid purchasing a flood-damaged vehicle is to only
buy from reputable dealers. Before purchasing, have the vehicle
inspected by a third-party garage. Insist on being given a formal
vehicle history report.

 

source: http://www.economicalinsurance.com/en/abouteconomical/resources/MR-Flood-damagedautosfromAlberta-June282013FINAL.pdf

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