Is It Illegal to Sell a Flood Damaged Car?

Is It Illegal to Sell a Flood-Damaged Car?

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You can legally sell a flood-damaged car if you fully disclose its history to the buyer beforehand.

Under commercial law, sellers are obligated to inform buyers about any damage, ensuring they are aware that the car has previously been flood-damaged.

Additionally, in the USA, obtaining a salvage title for a flood-damaged vehicle is necessary to clearly indicate to potential buyers that the car has been affected by flooding.

Best Places to Sell a Flood-Damaged Car:

Peddle

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Peddle is a reputable company operating in over 50 states in the US and has purchased over 2 million cars in various conditions, including flood and fire-damaged vehicles.

To sell your flood-damaged car, you can contact them by filling out an online form or calling (855) 925 4302.

How to sell a car to Peddle:

1. Fill out the online form – provide the car’s make, model, and mileage and describe the condition.
2. Accept the offer – you will get an instant cash offer valid for 7 days.
3. Schedule pickup – the company can pick up your car within 24-48 hours at no extra cost.
4. Hand over the Title – sign and provide the agent with the Title. You won’t need any additional paperwork.
5. Get paid – you will get paid for the type of car’s pickup. You can choose between a check or cash.

Peddle can assist you if you have any problems with your title as it is in touch with a number of specialists who can help resolve title problems that you may have.

Wheelzy

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Wheelzy is another company that has purchased junk cars like flood-damaged cars since 2016. Over 42,000 people have worked with this company during this timeframe and left positive reviews on Trustpilot. 

You can contact Wheelzy by calling them at (855) 510-1108 to get a quote. Alternatively, you can get a quote by visiting the website. During this process,  you will need to provide some car details like:

• The model
• Make
• Submodel
• Car zip code
• Year

Ideally, you can get an offer in 90 seconds and once you view it, you have up to 7 days to accept it.

Once you accept their offer, you can set a pickup time that is convenient for you. What’s more, Wheelzy agents will come to. You will then receive the payment on the pickup day.

CarBrain

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Carbrain is a car company that purchases damaged cars in all states in the US.

To sell your car to this company, you need to fill out an online form on carbrain.com. You will either receive an offer immediately or the customer support team will contact you after calculating the best price. 

Once you accept the offer, Carbrain agents will pick up your car 48 hours later. During pickup,  you ought to give your car keys and the title of the car. In return, you will receive your payment. 

Related: 8 Places that Buy Used Cars Running or Not

How to Sell a Flood-Damaged Car Privately?

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Selling a flood-damaged car privately involves a few important steps to ensure a legal and profitable transaction:

1. Understand and Assess the Damage:

Before selling, it’s crucial to evaluate the actual damage to the vehicle. If possible, have a professional mechanic inspect the car to understand the extent of the damage.

If you opt not to spend on a professional inspection, you can conduct a basic assessment yourself, ensuring all electrical systems are off to avoid risk.

2. Gather Necessary Documentation:

Prepare all required documentation, such as the car’s title, warranty, liability paperwork, etc.

If you don’t have a title, you’ll need to show proof of ownership, like a photo ID and valid car registration.

Having your paperwork in order is vital to not lose potential buyers due to a lack of documentation.

3. Select Platform to Sell

Finding a private buyer for a flooded vehicle can be challenging, as most are looking for drivable vehicles.

Expect a longer timeframe than the average 52 days for private car sales when selling a flood-damaged vehicle.

Best places to sell a flood-damaged car privately:

• CarGurus – listing price is $4.99
• Autotrader – listing price is $49
• eBay Motors – listing price varies from $19 to $79
• Craigslist – listing price is $5
• Facebook Marketplace – listing is free

4. Honest Disclosure to Potential Buyers:

When selling a flood-damaged car, full disclosure to potential buyers is legally required. It’s crucial to be upfront about the car’s condition. Selling it without revealing the water damage constitutes fraud.

It’s also illegal to alter the car’s title to hide its flood-damaged history.

5. Sign the Bill of Sale

When selling a flood-damaged car, signing the bill of sale is a critical step in the transaction.

This legal document not only formalizes the sale but also serves as a record of the transaction, detailing key information like the sale date, purchase price, and the identities of both the buyer and the seller.

Most importantly, in the case of a flood-damaged vehicle, the bill of sale should explicitly mention the car’s condition, including its history of flood damage.

This disclosure is essential to protect the seller from future liability and to ensure that the buyer is fully informed about the car’s state.

Can a Flood-Damaged Car Be Fixed?

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The repairability of a flooded vehicle depends greatly on the water level reached and the duration of submersion.

According to insurers, minor flooding that drains quickly often allows for affordable fixes, while dash-level immersion usually constitutes a total loss.

Damaged made by flood:

• Critical electronic components corrode once immersed, causing hidden defects to emerge progressively.
• Extended saturation causes lubricant contamination and rust, compromising critical engine, transmission and suspension functions over time.

In severe cases, selling salvageable parts may make more economic sense than extensive repairs of the whole vehicle with an uncertain outcome.

How Long it Takes to Sell a Flood-Damaged Car?

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Selling a car privately usually spans around 52 days, but this duration often extends significantly for flood-damaged cars.

The time needed to sell a flood-damaged vehicle varies based on factors:

• The extent of flood damage
• The car’s overall state
• Car’s make and model
• Condition of individual parts.

For a quicker transaction, it’s best to sell a car to  Peddle, Wheelzy, or CarBrain, as they can typically complete the process within 24-48 hours.

Can You Sell a Flood-Damaged Car Without a Title?

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No, it is not legal to sell a flood-damaged car without a proper title that indicates the vehicle’s salvage or rebuilt status. Here are some key points on title requirements when selling flood cars:

• In most states, the title must brand vehicles as “salvage” or “rebuilt” if they have sustained substantial water damage. This is usually defined as water above the dashboard level.
• Branding the title prevents fraudulent sales where flood history and damage are not disclosed to buyers. It alerts them to the vehicle’s condition and the likelihood of mechanical issues.
• Selling any car requires signing over a title to transfer ownership legally. With flood cars, the title must show the salvage/rebuilt branding for the buyer’s awareness.
• Trying to sell a flood-damaged car without a properly branded title is illegal. Most states have consumer protection laws against selling flood cars without declaring damage status.
• Penalties for those who conceal flood damage and attempt sales without proper titles can include large fines and even criminal fraud charges in some jurisdictions.
• There are no loopholes that allow legal sales of flood vehicles without passed titles, regardless of other documentation provided or repairs made afterward. Disclosures must exist on titles themselves as the main proof of ownership.

Related: Can You Sell a Car Without a Title? Ultimate Guide