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In the wake of the devastating flooding caused in Tennessee and across the southeast by recent hurricanes, the Tennessee Department of Commerce & Insurance (TDCI) and the Tennessee Motor Vehicle Commission reminds car buyers to be alert for flood-damaged vehicles from other states being sold by scammers to unsuspecting Volunteer State consumers. 

After severe flooding or 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 retain their damaged vehicles. Rather than send their vehicles to the scrapyard, some dishonest dealers or other individuals will attempt to make a quick buck by selling their flooded vehicles to drivers in other states by claiming the flooded vehicles are in good condition.  

“After every out-of-state severe weather event, Tennessee experiences an influx of flood-damaged vehicles from scammers who are looking to unload their flooded cars and trucks,” said Tennessee Motor Vehicle Commission Executive Director Denise Lawrence. “You should ask hard questions and conduct your due diligence if you are approached by someone who is offering a supposedly great deal on a vehicle that was last used in a state that recently sustained flooding.”  

The following consumer tips can help consumers steer clear of flooded-car scams. Remember: 

 – The Tennessee Motor Vehicle Commission recommends that individuals purchase motor vehicles from a licensed motor vehicle dealer. To verify that a dealer or individual is currently licensed, visit verify.tn.gov.  

– 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.

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.