Hurricane Damaged Cars - Beware !

Hurricane Katrina damaged as many as a half-million motor vehicles in New Orleans and on the Gulf coast. This includes new and used vehicles belonging to dealers, as well as vehicles belonging to individuals and companies. Many were physically damaged or destroyed, while others were flooded, in some cases by salt water. Most will be "totaled" by owners' insurance companies.

The problem for automotive consumers in future months is that a large number of the these vehicles -- many 2006 models -- will reappear on the market, even though they have been written off by insurance companies as total losses. Many states allow such vehicles to come back to life with "salvage" titles. In other states, these vehicles may be titled without indication of salvage status. Scammers know how to work the system to their advantage.

For consumers who will be buying used cars -- or even new cars -- in the coming months, extreme caution should be exercised. Look for signs of damage repair, get a CARFAX vehicle history report, check the title, and get a qualified mechanic's inspection. Flood damaged cars may have a musty odor inside, or a cheap "odor killer" smell. Look for signs of water in the trunk and engine compartment. Be suspicious of unusually low prices.