In the wake of the recent flooding caused across the southeast by recent hurricanes, the Tennessee Department of Commerce & Insurance (TDCI) and the Tennessee Motor Vehicle Commission are reminding potential car buyers to look out for flood-damaged vehicles being sold by scammers.

After natural disasters such as Hurricane Helene and Hurricane Milton, owners of flooded vehicles that may have been declared total losses by insurance companies may be allowed to keep their vehicles.

TDCI officials say rather than sending the vehicles to the scrapyard, some dishonest dealers or other individuals will attempt to make a quick buck by selling the flooded vehicles to drivers in other states by claiming the vehicles are in good condition.

Here are some tips that can help consumers steer clear of flooded-car scams:

• The Tennessee Motor Vehicle Commission recommends that individuals purchase motor vehicles from a licensed motor vehicle dealer, which can be verified online.
• Check the National Insurance Crime Bureau (NICB) before buying. The NICB offers a free lookup service called VINCheck that allows consumers to check a vehicle for a “red flag” such as theft, accident damage, or being written off as a total loss through an insurance company.
• Use a reputable title check service such as the National Motor Vehicle Title Information System (NMVTIS) to check a vehicle’s title history. Car history reports are only as good as the information they collect from other sources. Some of the data collected may be delayed in being uploaded to their system.
• Be on the lookout for indicators of a flooded vehicle including a musty smell, damp carpets or mud or silt under the seats or engine. Have a trusted mechanic inspect a vehicle before purchasing it as the vehicle could appear to be in good shape but have significant electrical and corrosion issues.
• Prior to the sale of a flooded vehicle, any person selling a flooded vehicle is required by law to disclose such history to the purchaser. Further, once titling that vehicle, the purchaser will receive a branded vehicle title indicating the vehicle’s salvage history. Having such a title will substantially impact the value of that vehicle for further resale. If you suspect a licensed dealer has sold you a vehicle with a salvage history and failed to disclose it, you may file a complaint here.

Consumers should remember that the Motor Vehicle Anti-Theft Act of 1996 makes a clear distinction between a “freshwater flood” vehicle, which can be rebuilt, and a “saltwater damaged” vehicle, which cannot be rebuilt. Tennessee titling laws, which are administered by the Tennessee Department of Revenue, distinguish between “non-repairable” and “salvage” vehicles by the type and extent of the damage. The determination about the type and extent of damage is made by the insurance company.

Questions? Contact the Commission at (615) 741-2711 or send an email.