Auto Groups Send Warning Over Flood Damaged Vehicles

Herb Lieberman, past president of the Automotive Recyclers Association, along with John Garamendi, California Insurance Commissioner, and the Automobile Club of Southern California, pointed to some attempts by unscrupulous companies to sell cars damaged by the Gulf Coast floods last year.

ARA is currently drafting federal legislation that would effectively kill the VIN on economic and constructive total-loss vehicles. Insurance Commissioner Garamendi supported ARA’s efforts on this front.

Lieberman also reported that he found 14 2005 Nissans advertised on the internet by a Gardena, Calif-based auto auction yard late last year. 

“These 2005 cars were being advertised and sold as saltwater damaged vehicles with Arizona salvage certificates,” Lieberman said.  “I found it very peculiar since there are no saltwater bodies in the state of Arizona.”

This raised a “big red flag,” according to Lieberman, who checked the National Insurance Crime Bureau’s free online database, www.nicb.com, consisting of motor vehicles and boats affected by the Gulf Coast hurricanes.  He found the vehicle identification number (VIN) for the Nissans and reported the flood-damaged autos to Arizona state law enforcement officials.

Garamendi has also urged consumers in the market for a used car to “be on the lookout for flood-damaged vehicles that were damaged in Louisiana, Mississippi, Alabama, Florida and Texas, and shipped to other parts of the country through car wholesalers.”