Where Do Flood-Damaged Cars End Up?
2 Answers
Flood-damaged cars may end up as collateral vehicles, enter the used car market, or be recycled. Here's a partial overview of the destinations for flood-damaged vehicles: 1. Becoming collateral vehicles: Some flood-damaged cars are purchased by individuals to use as collateral for loans. Particularly luxury vehicles can still secure substantial loan amounts. 2. Entering the used car market: Experienced used car dealers acquire these vehicles at very low prices, then modify and refurbish them. After modification, these cars appear nearly new and are sold at inflated prices. 3. Being reclaimed: Some flood-damaged vehicles that haven't been registered are ultimately repurchased by manufacturers. These cars may be sold to internal employees, specifically staff at car dealerships who are very familiar with used car dealers, ultimately returning these vehicles to the market.
My car was completely submerged in water during a heavy rainstorm last year, with the water level reaching the hood. The aftermath was quite frustrating: First, I filed an insurance claim and waited several days for the car to be towed to a repair shop for assessment. They said water had entered the engine, causing a drop in compression ratio and short circuits in the electronic systems. The repairs were too expensive, so the insurance company declared it a total loss and sent it to a salvage auction. Later, I heard from auction staff that some buyers purchase these cars at low prices to repair and resell, but such vehicles often develop issues soon after, like air conditioning leaks or chassis corrosion. Those beyond repair end up at scrapyards for parts or metal recycling. As a car owner, I feel that while I lost some money, driving safety is paramount. Next time, I’ll never touch a flood-damaged used car and will remind friends to regularly check their vehicle’s waterproofing to reduce similar risks.
