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Consumer Tips:
How to Avoid Buying a Flood Damaged Vehicle

 
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Good used vehicles are in demand. With careful shopping, some research and a little common sense, you should be able to find a vehicle that will fit your needs.

Recent hurricanes in the U.S. Gulf states have led to many motor vehicles suffering flood damage. By following some simple tips, Ontario consumers can not only protect themselves from unknowingly purchasing a flood damaged used vehicle but also from purchasing any used vehicle they may later regret.

  1. Always ask to view the Used Vehicle Information Package (UVIP).

    In Ontario, a seller must provide a UVIP to a prospective buyer. For a fee of $20, a UVIP can be purchased:

  2. Buy from dealers registered with the Ontario Motor Vehicle Industry Council (OMVIC).

    • Vehicles purchased from these dealers are protected by the Motor Vehicle Dealers Compensation Fund, which is a fund that was established to compensate consumers (up to $15,000) who suffered a financial loss arising from a transaction with a registered dealer.
    • To find out if your dealer is registered with the Ontario Motor Vehicle Industry Council visit ExtraWeb Consumers* - The OMVIC's online services website. Click on "Search for Dealers".
    • For additional information on the Motor Vehicle Dealers Compensation Fund visit Ontario Motor Vehicle Industry Council*. Click on "Compensation Fund".

  3. Always inspect a vehicle in the daylight before you buy it.

    Kicking the tires isn't enough.

  4. Look for obvious signs of water damage.

    These include:

    • The smell or sight of mould and mildew, water, sand, silt or mud under the carpets or behind the dashboard;
    • Rust on interior screws where water shouldn't end up.
  5. Don't forget less obvious signs of water damage.

    These include:

    • Checking or looking for stains or discolouration of the upholstery;
    • Lifting up some of the trim and looking for stains, discolouration or rust;
    • Checking for water, sand, silt or mud in the spare tire compartment, storage areas inside the vehicle as well as in crevices inside the engine compartment;
    • Looking for unusual rusting among various components in the engine areas.
  6. Take the vehicle to a mechanic or to a diagnostic centre for a check-up before finalizing the purchase.

    They may be able to uncover less obvious signs of damage including water damage that may result in electrical systems short circuiting, resulting in safety devices, such as airbags not working.

  7. Test as many components as possible.

    • Radio, windshield wipers, turn signal, headlights and heating/air conditioning systems to name a few.
  8. Ask to view the service records for the vehicle.

  9. Check carefully for excessive wear.

    • Interior upholstery, the seats, even the brake and accelerator pedals.
  10. Look closely at the exterior.

    Ripples on the body of a vehicle suggest that bodywork has been done and that the vehicle could have recently had bodywork hastily completed.

  11. Take the vehicle for a road test that allows driving at different speeds on different road conditions.

  12. If you are importing a motor vehicle into Canada (regardless of whether it may be from an area affected by flooding or not), be sure to check with the federal Registrar of Imported Vehicles.

    This will enable you to become familiar with appropriate rules and procedures that apply. For additional information visit: Registrar of Imported Vehicles

  13. Consider obtaining additional information about vehicle history of a vehicle that may have been registered in other parts of North America.

    You may be able to find this information on the Internet.

  14. For information on vehicle branding in Ontario and equivalent brands from other Canadian and US jurisdictions:

    See Mandatory Branding Program

  15. See more tips on how to avoid unknowingly buying a flood damaged vehicle.

    Visit the Insurance Bureau of Canada*

 



Last Modified: June 21, 2006