As North Carolina continues to recover from the devastating impacts of Hurricane Helene in 2024, a new concern has emerged for consumers in the used car market. The North Carolina Attorney General recently issued a warning about the potential influx of flood-damaged vehicles being sold without proper disclosure. As civil attorneys dedicated to protecting consumers, we at King Law Offices want to ensure you’re informed about the risks and your legal rights when purchasing a used vehicle.
The Attorney General’s Warning
Hurricane Helene brought unprecedented flooding to many parts of North Carolina, submerging countless vehicles in floodwaters. While some of these vehicles are rightfully declared as total losses by insurance companies, others may be cleaned up, retitled, and sold to unsuspecting buyers—a practice known as “title washing.” The Attorney General’s office has cautioned that these flood-damaged vehicles may appear in used car lots, online marketplaces, or private sales, often without any indication of their history.
Flood-damaged vehicles pose significant risks, including:
- Mechanical Failures: Water can damage critical systems like the engine, transmission, and electronics, leading to costly repairs or sudden breakdowns.
- Safety Hazards: Corroded wiring and compromised safety features, such as airbags, may fail when you need them most.
- Health Concerns: Mold and mildew can grow in areas exposed to floodwater, creating health risks for drivers and passengers.
- Legal and Financial Loss: Buyers may be left with a vehicle that’s worth far less than what they paid, with little recourse if the seller concealed the damage.
How to Protect Yourself
Before purchasing a used vehicle, take these steps to avoid buying a flood-damaged car:
- Check the Vehicle History Report: Use a reputable service like the National Motor Vehicle Title Information System (NMVTIS), accessible through www.vehiclehistory.gov , to check for any flood damage or salvage titles. While not foolproof, this can reveal red flags in the vehicle’s history.
- Inspect the Vehicle Thoroughly: Look for signs of water damage, such as:
- A musty odor or signs of mold in the interior.
- Rust or corrosion in unusual places, like under the dashboard or in the trunk.
- Mud or silt in hard-to-reach areas, such as inside the glove compartment or under the seats.
- Foggy or water-damaged headlights and taillights.
- Have a Mechanic Inspect the Car: A trusted mechanic can identify flood damage that may not be visible to the untrained eye, such as water in the engine or electrical issues.
- Be Wary of Deals That Seem Too Good to Be True: If a vehicle’s price is significantly lower than market value, it could be a sign of hidden damage. Scammers often target buyers looking for a bargain.
- Ask Questions: Request documentation from the seller, including the vehicle’s title history and any repair records. If the seller is evasive or unwilling to provide information, walk away.
Your Legal Rights in North Carolina
Under North Carolina law, sellers are required to disclose known material defects, including flood damage, when selling a vehicle. Failing to do so may constitute fraud or a violation of the North Carolina Unfair and Deceptive Trade Practices Act (N.C. Gen. Stat. § 75-1.1). If you’ve purchased a flood-damaged vehicle and believe the seller misrepresented its condition, you may be entitled to:
- Rescission of the Sale: Canceling the transaction and recovering your money.
- Damages: Compensation for repair costs, diminished value, or other losses.
- Treble Damages: In cases of unfair or deceptive practices, you may be awarded up to three times your actual damages.
- Attorney’s Fees: The court may order the seller to cover your legal fees.
However, pursuing a claim can be complex, especially if the vehicle’s title was washed in another state or the seller claims ignorance of the damage. An experienced civil attorney can help you gather evidence, such as vehicle history reports, repair records, and expert testimony, to build a strong case.
What to Do If You’ve Already Purchased a Flood-Damaged Vehicle
If you suspect your recently purchased vehicle was flood-damaged, act quickly:
- Document the Issue: Take photos of any signs of flood damage and keep records of any repairs or issues you’ve encountered.
- Obtain a Vehicle History Report: Confirm the vehicle’s history through www.vehiclehistory.gov or another NMVTIS-approved provider.
- Contact the Seller: Request a resolution, such as a refund or compensation for repairs. Be sure to communicate in writing to create a paper trail.
- Consult an Attorney: If the seller refuses to cooperate, an attorney can advise you on your options and help you pursue legal action.
We’re Here to Help
At King Law Offices, we understand the frustration and financial burden that comes with purchasing a flood-damaged vehicle. Our team of experienced civil attorneys is here to help you navigate the legal process and seek the compensation you deserve. If you’ve been affected by a flood-damaged vehicle purchase in the wake of Hurricane Helene, contact us today at 888-748-KING for a consultation.
Let’s work together to hold unscrupulous sellers accountable and keep North Carolina consumers safe on the road.