With thousands of vehicles potentially ruined by weather damage, chances of some being sold on to unsuspecting buyers is high.

ANOTHER major insurer has voiced concern about cars damaged by recent weather events being kept on the road and resold to the unsuspecting.

The inevitability of this is concerning industry experts, because of the sheer volume of vehicles caught out by the Auckland floods of late January and by Cyclone Gabrielle in February.

Recently car auction specialist Turners expressed expectation that insurers will write off about 10,000​ cars.

 Chief executive Greg Hedgepeth said that figure was a best estimate, but it did not include uninsured vehicles.

With those in the mix, the total count of vehicles could be much higher, some fear.

Caution about flood-damaged vehicles is advice that not only private buyers but also traders shopping for stock need should give priority to, many say.

In the past few weeks, the count of vehicles in the North Island declared total losses due to flood damage has gone from the hundreds into the thousands and there is no system in place to ensure the safety of flood-affected uninsured vehicles.

Today one of the country’s biggest insurers, State Insurance, said that more than 6200 vehicle claims have been lodged with it and fellow big players AMI and NZI. Around 85 percent of these are likely to be total losses.

While those will be taken out of circulation, either crushed or perhaps disassembled for parts, it believes there is a risk uninsured vehicles may be dried out and put up for sale.

Wayne Tippet, State’s executive general manager claims, says water damage can be much more than just a damp smell or silt in the carpets. 

“Water can get into the engine, braking system and electrical components of the vehicle, eventually compromising its safety.

 “For us, customer safety is paramount.  That’s why any vehicles that have had water enter the interior are generally written off. 

“It can take time for water damage to show itself, so while a car might work now, there are just no guarantees with a flood damaged car that it will continue to be safe to drive.  It’s just not worth the risk.” 

A few precautions to the standard pre-purchase checks were highly recommended. 

“It’s a good idea to have any vehicle you intend to buy inspected by a professional prior to purchase,” he says.   

“Our advice is to treat any vehicle with signs of water damage with caution.  Even if the price is really good, be aware that entire systems may need to be replaced and certified - an expensive and time-consuming process.”

Some owners may be unaware of the potential damage to their vehicle.  Others might not be insured, or decided not to make an insurance claim, and are now selling a damaged vehicle. 

Vehicles that are written off by an insurer should be recorded on Waka Kotahi’s Register of Written Off and Damaged Vehicles https://www.nzta.govt.nz/vehicles/choosing-the-right-vehicle/recalls-and-damaged-vehicles/written-off-and-damaged-vehicles/.

While the register is not fully comprehensive, it’s a good place to start, Tippet says. Anyone using it will need the vehicle’s VIN (vehicle identification number). 

A car having a new or recently issued Warrant of Fitness (WoF) didn’t mean there is no water damage.   

“A WoF notes that at the time of inspection the vehicle complied with requirements to be on the road.  There is nothing in a WoF that expressly looks for water damage.” 

One tip when examining a vehicle was to check for dampness; vehicles that have been immersed in water often have a distinctive aroma. 

“If the vehicle you’re looking at smells damp, pay close attention to “out-of-the way” places that may not have dried out fully such as the joint between the seat and back-rest, insides of the doors and seat pocket, under the seats and under floor mats (and) the air vents when the air conditioning is running.”

Condensation is another potential pointer.

“Modern vehicles are designed to be water-tight so condensation may be an indication there’s a problem.” This would appear on the inside windscreen and windows and maybe even on the inside of the dash display. 

“It will be harder to spot on a warm day so think about checking out your prospective purchase in cooler conditions.” 

Checking out the driving lights was also a good idea: These should be clear and dry.  “The presence of condensation may indicate an issue, as could water staining or ‘tide lines’ on the inside lenses.” 

Ensuring all electrical components worked as they should was prudent. Checking not only that power windows, seats, mirrors, central locking were all working smoothly, but also that audio/visual components turned on, controls worked without spikes in volume, the speakers sounded clear and LEDs all lit up was a good idea.  

Also that all ignition lights turned on when the key is turned, there was no moisture or rust in the cigarette lighter and the fuses were of the correct amperage. 

“Higher amp fuses may be present due to water in the circuits leading to power surges blowing the fuses repeatedly.”

When checking the engine, it pays to pull the dipstick. “Are there water droplets on it?  Does the oil look milky, or is there milky oil under the oil cap? If so, it may be an indication of submersion.  It may also be indicative of engine damage such as a blown head gasket or a cracked head.”

Dirt and debris were expected on used vehicles particularly in the wheel wells and the underside of the vehicle. 

“But the presence of larger items like small stones, sticks and grass may be an indication the vehicle has been immersed in water.”

 For that reason, State suggested a good appraisal of the engine bay. 

“Is there debris on the inside of things like the exhaust manifold, or on top of the gear box?  Does the general area look unusually clean relative to the rest of the car? Could this be indicative of cleaning to hide the issue?”

Likewise, looking over the radiator to see if vents were clogged with silt or debris, or showing a ‘tide-line’. Does the exhaust pipe gurgle or spray out dirt/discoloured water when revving the engine? The inside of the door panel drain holes should be clear.  Also, the inside of bumpers towards the middle of the vehicle.   

“These are away from the splash zones of the wheels.  Debris in this area could be signs of a problem.”  

The biggest seller of new vehicles here, Toyota New Zealand, recently also voiced a warning, with technical service manager James Jewell recommended getting a potential vehicle purchase thoroughly checked out by a trusted expert you can trust.

“Insurers will quickly write off a car if water has been inside the cabin as the NZ Transport Agency Vehicle Certification Guide is specific on a large number of components that need to be replaced,” he said.

“Safety components such as airbag inflators and seat belt pre-tensioners are highly vulnerable to moisture.

“The seat belt devices that pull a seat belt tight in a collision are under a seat and easily damaged by water. They may dry out but could then malfunction and not operate as intended – causing early deployment, no deployment or more force than intended.”

The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa believes one in 10 car insurance policies for affected vehicles were only third-party, fire and theft policies, which did not cover flood damage. 

Turners handles around half of the insurance write-off market under contracts with Suncorp (owner of Vero and AA Insurance), Tower, and some other smaller insurers.

 When a car is written off, and a claim paid to a policyholder, the car becomes the property of the insurer. The insurers contract companies like Turners to handle the disposal of the vehicles.

Turners holds online auctions for written-off cars, and buyers include companies that buy them to strip them of parts.

Hedgepeth recently said a large proportion of flood-damaged cars would just be shredded. 

Industry experts says any vehicles written off, then repaired, will need to be re-certified by the new owner.

Dealers are also being reminded that Clean Car Standard charges may still apply to flood-damaged vehicles and this should be considered when making insurance claims, the website AutoTalk.co.nz says.