How to Spot a Flood-Damaged Car Before You Buy

In 2024, 347,000 cars in the US were damaged by floods. Extreme weather conditions like hurricanes and heavy storms contribute to thousands of flooded cars suffering damage. Despite there being clear dangers, plenty of those cars are still being resold. Even a little water damage can have a serious impact on a car’s performance, affecting the engine, electricity system and the oil system. To help you avoid this, here are some used car inspection tips to help you identify flood damage before purchasing a used car.

Why Buying a Flood-Damaged Car is Risky

Water damage can cause long-term mechanical and electrical failures. Some hidden issues may not immediately appear, leading to expensive repairs down the road. Insurance companies often total flood-damaged cars, yet some are resold with salvage or rebuilt titles.

Here are some of the main reasons why buying a flood-damaged car is risky:

• Hidden damage and safety risks: Flood damage can appear in hard-to-detect areas in engine components and electrical systems. Damage to airbag systems can put you in danger in emergencies.
• Rust damage: Water can cause rust and corrosion over time, requiring pricey repairs.
• Electrical issues: Short circuits in the wiring could prompt malfunctioning lights, safety systems and fires.
• Structural problems: Water can weaken the frame of the car.
• Mold: Moisture can cause mold leading to strong odors and potential health risks.

Water damage in cars will impact the resale value. Even if the damage is not obvious immediately, the long-term effects will make it less desirable.

Signs of Flood Damage to Look For

How to check for flood damage in a car? It’s important to check every part of a used car before making a purchase.

Inspect the Vehicle’s Exterior

It’s important to look for signs of a flood-damaged car, beginning with the exterior:

• Rust in unusual places: Look out for rust under the hood, door hinges and screws. Rust can cause corrosion of critical components, weakening safety features and the car's structural integrity. It can also spread quickly, causing aesthetic damage like paint bubbling and discoloration.
• Water lines or mud deposits inside the wheel: This will be an indication that the car has been exposed to high water levels, which should be a red flag that it has been affected by flood damage.
• Foggy or water-stained headlights and taillights: This can affect a car’s lighting system leading to impaired visibility and therefore safety. It can also mean impaired visibility to other drivers. There is the added risk of electrical damage inside the lights, leading to them malfunctioning or failing altogether.

Check the Interior for Water Damage

After checking the car’s exterior, you should also check the interior for flood damage:

• Musty or moldy odor inside the car: Mold spores can cause respiratory problems and asthma symptoms in some people.
• Water stains or mildew: This could appear under carpets, floor mats, and trunk lining. Mildew can be very difficult to remove.
• Warped or discolored upholstery, especially near the seats and dashboard: This can stiffen materials and also affect the car’s airbag system and seatbelts, causing safety concerns. Water can permanently damage leather and vinyl. It also weakens the fabric, leading to tears and fraying.
• Electrical issues: This might include malfunctioning power windows, radio or interior lights. This could prompt safety risks and widespread malfunctions.

Examine Under the Hood

Next, it’s important to examine under the hood for further signs of flood damage:

• Corrosion on battery terminals: This can lead to poor connections between the battery and the car's electrical system, making it difficult to start the car. It can also diminish a car's battery life and contribute to battery acid leakages.
• Corrosion on exposed metal parts: This can weaken the car's overall structure. The frame supports the whole vehicle and corrosion will affect safety. Moreover, corrosion of the car's suspension components can affect the car's handling, causing failure to control arms, struts and shock absorbers.
• Debris or dried mud in hidden areas: This might be under the spare tire or in the air filter compartment. It is a sign of incomplete cleaning following repairs after flood damage. Mud exposure can cause mold growth, leading to corrosion and electrical damage. Moreover, debris in air vents and ducts can clog heating systems and air filters.
• Dampness in the fuse box or electrical connections: Moisture or water in these areas can lead to corrosion, short circuits, system malfunctions and fire risks. These are serious safety concerns and should be noted when inspecting a used car.

How to Verify the Car’s History

Check the Vehicle History Report

It’s important to check the car’s Vehicle History Report (VHR) because this should make note of any flood damage records. You can use Carfax, AutoCheck, or the National Motor Vehicle Title Information System to check for this, although there is usually a fee. In addition, you can use Vehicle Identification Number VIN lookup for flood damage for free on the Carfax website.

When checking the car’s VHR you should look for title status indicators:

• Salvage title cars: Vehicles that insurance has written off as a loss and should be a major red flag.
• Rebuilt title cars: Formerly salvaged cars that have been repaired to roadworthy conditions.
• Flood title cars: This means the car has been in water deep enough to fill the engine compartment and should be a cause for concern.

Verify Title and Ownership Records

In addition to checking the car’s title on the VHR, it is also important to verify title and ownership records. Beware of recent title transfers across multiple states as this often occurs to hide flood damage. This happens because title rules vary from state to state. So while in some states the car would be labeled “salvage” or “flood”, in other states this could be indicated by a number or letter code.

You should also be cautious of “washed” titles where flood damage is removed from the records. Title washing involves repairing a heavily damaged salvaged car in one state and transferring it to another and lying about the car’s history to obtain a clean title. Often cars are transported from states where hurricanes or floods have occurred to states far away from these incidents. It can also take several months for these cars to appear on the used car market.

Title washing is a federal crime, but those laws aren’t always enforced strictly or violations go unseen. If a used car has a clean title but you suspect flood damage, it’s best to avoid it.

Additional Inspection Tips

Perform a Smell Test

Flood damage can cause mold and mildew that produce strong odors. If you smell any musty or mildew-like scents then it is a strong indication that there may have been prior flooding.

Moreover, if a car smells excessively like air fresheners you should question if it is masking something. Ultimately, if something doesn’t smell right, there’s probably a reason for it.

Test the Electronics

There are often electrical issues in flood-damaged cars.

When inspecting a used car, make sure to try every button and feature to see if they are working. Test the power windows, seat adjustments, lights, radio and A/C. Any delayed responses or flickering lights may be signs of electrical issues from water damage and should be raised with the dealer.

Get a Professional Inspection

It’s always best to request a professional inspection from a trusted mechanic before purchasing a used car. They can check for hidden damage and electrical issues in flood-damaged cars.

A professional will be able to detect water-related electrical failures with specialized diagnostic tools.

What to Do If You Suspect a Car is Flood-Damaged

If you suspect that a used car is flood-damaged you should avoid buying it unless you have full disclosure from a trusted seller. If something feels off it is best to consider alternative certified pre-owned cars with clean titles.

If you have suspicions of deception on the seller's part, you should report any potential undisclosed flood-damaged vehicles to the DMV or contact the Better Business Bureau.

Use a combination of VHRs, physical inspections and professional evaluations to make an informed decision about purchasing a used car suspected of flood damage. Avoiding a bad purchase can save you thousands of dollars in repairs.