Province Cautions Island Consumers Regarding Purchasing Flood-Damaged Vehicles

* Transportation and Public Works [to Jan 2010]
The Department of Transportation and Public Works would like to notify Island consumers to be aware of the potential that flood-damaged vehicles from the Gulf Coast could make their way to Prince Edward Island for resale as used vehicles.

“Vehicles cross the border every day for resale and some may come from areas hit by flood damage,” said Transportation and Public Works Minister Gail Shea. “With that in mind, it’s important for consumers to do their homework and research any vehicle before they buy it.”

Some 570,000 vehicles, including new vehicles sitting on dealer lots, were damaged during Hurricanes Katrina and Rita. A risk exists that many could be retitled and then sold to unsuspecting buyers all around North America. The act of title washing is retitling vehicles to remove the red flags or brands that indicate a car or truck has been damaged in a collision or a natural disaster.

While some flood-damaged vehicles can be salvaged, they can also have long-lasting mechanical problems. Problems linked to flood damage can include the malfunction of brakes, engine control modules, airbags, headlights, windshield wipers, power accessories and stereo equipment. Flood damage may not always be obvious, so consumers must rely on good inspection reports and learn how to spot unusual problems.

Shea advised that flood-damaged vehicles are declared as “salvage,” “non-repairable” or as a “flood vehicle,” depending upon the depth of the water intrusion. Any vehicle branded as salvage in another jurisdiction, including the U.S., must undergo an inspection by a licensed inspection mechanic after repairs are completed and before it can be registered again for highway use. Any vehicle branded as non-repairable is not allowed to be registered for use on the highway and is considered for parts only. Shea noted that this increases the importance of consumers having an accurate vehicle history before purchasing.

Vehicle histories can be checked through www.carfax.com, www.carproof.com or www.autofacts.ca. All vehicles imported into Canada must first go through the Registrar of Imported Motor Vehicles. Anyone looking to import a vehicle must first contact the Registrar of Imported Motor Vehicles at www.riv.ca or 1-888-848-8240 to ensure that prospective purchases meet all Canadian entry requirements.

Media Contact: Jeff Himelman