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Author: Milligram46 Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 71040  
Subject: 230K Cars Ruined By Superstorm Sandy Date: 11/27/2012 2:56 PM
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Be very careful in the coming months if you're buying a used car. Don't think because you live in Tulsa, Oklahoma you're immune.

What happens is the cars get totaled. The insurance company then sells the totaled cars to recoup some losses at auction as salvage. The salvaged cars are bought by agents who then transport them to states with lax titling laws. They retitle the cars with a new title, instead of salvage, and then do a half-hearted repair job. The car then gets shuffled again out of that state to other states, usually out of the storm area, and internationally.

After Katrina there was a story about a person down in South America who got a "good deal" on a Mini Cooper, had it sent down to find out that it was a flood damaged, ill repaired money pit. They ended up spending more than the car was worth to make it whole.

Also remember, these cars can end up even at reputable dealers. For example the same agent may just put them up for auction sale. A reputable dealer buys the car at auction, doesn't sell it CPO and puts it on the lot near as-is.

So be careful - a lot of salvage going to be hitting the market in 3 to 6 months, and there is a very tight market on used inventory.

http://editorial.autos.msn.com/blogs/autosblogpost.aspx?post...
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