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Addressing hidden flood damage after buying a car

On Behalf of | Nov 5, 2024 | Dealer Fraud

Buying a new vehicle can be a very stressful process. Those shopping on the used vehicle market, in particular, are often quick to make offers on vehicles that meet their basic criteria. They simply want to get the process over with as quickly as possible. Most professionals working in the auto sales industry adhere to state regulations and baseline ethical standards. They make all necessary disclosures regarding the condition of the vehicle and its history.

Others may bend or outright break those rules in an effort to move unwanted inventory or maximize the price for a particular vehicle. People may drive a vehicle for weeks before they start to recognize signs of significant damage. For example, perhaps the vehicle was previously damaged in a flood. Buyers in the Philadelphia area may not think much about flood damage because such scenarios are rare locally.

However, dealers typically purchase their vehicles in large lots at auctions or receive them as trade-ins, sometimes from people who relocated from other regions. The unfortunate reality is that some vehicles coming off of local used car lots may have water damage caused by flooding. Buyers may then have to take action when they discover that damage after a purchase.

How flooding affects a vehicle

Exposure to flooding can cause several distinct issues in used vehicles. The first is the increased likelihood of rust and/or corrosion throughout the body. Areas that people generally cannot see and access may have begun rusting as a result of the flood and may eventually compromise the structural integrity of the vehicle.

A flood may have also caused damage to interval vehicle systems, including the wiring. Even if electrical systems did not fail during the flood, they may not last as long as they would have without prior water incursion. Flood waters can contaminate the fluids that help with the operation of various systems.

Finally, there is the risk of mold development in the upholstered areas of the vehicle. That mold can potentially lead to illness for some vulnerable people and can also compromise the resale value of the vehicle.

Dealers should disclose known defects

Whether the dealership acquired the vehicle as a trade-in from a prior owner or as part of a large lot bought at an auction, they have a responsibility to provide thorough information to prospective buyers. That responsibility persists even if the dealership lists the vehicle in as-is condition. Buyers who discover the flood-related history of their vehicle after purchasing it, possibly because of a mechanic’s remarks, may need to take legal action.

Filing a successful lawsuit related to autodealer fraud can result in reimbursement for the diminished value of the vehicle or compensation for the cost of repairing it. Car buyers who discover major defects that a dealership did not warn them about may need to discuss their situation with a skilled legal team to determine what options may be available to them.

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