NICB, NMVTIS.
Houston And Thousands Of Flooded Cars
- Thread starter billt460
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Okay, so why exactly would GM or any other OEM provide insurance for dealer inventory that is in no way their responsibility?
Can dealers purchase coverage?
Of course, and whatever entity is floor planning (financing) that inventory would require this.
It is inaccurate to state that GM or any other OEM simply provides loss insurance for any dealer new car inventory.
This would be like saying that you are provided insurance on a financed car.
You are required to carry insurance on the collateral and should you fail to do so, the finance provider will purchase insurance on the collateral and charge you for it, but it's silly to try to pretend that your finance company is somehow providing insurance.
That's fact rather than uninformed speculation.
Can dealers purchase coverage?
Of course, and whatever entity is floor planning (financing) that inventory would require this.
It is inaccurate to state that GM or any other OEM simply provides loss insurance for any dealer new car inventory.
This would be like saying that you are provided insurance on a financed car.
You are required to carry insurance on the collateral and should you fail to do so, the finance provider will purchase insurance on the collateral and charge you for it, but it's silly to try to pretend that your finance company is somehow providing insurance.
That's fact rather than uninformed speculation.
Originally Posted By: fdcg27
Okay, so why exactly would GM or any other OEM provide insurance for dealer inventory that is in no way their responsibility?
Can dealers purchase coverage?
Of course, and whatever entity is floor planning (financing) that inventory would require this.
It is inaccurate to state that GM or any other OEM simply provides loss insurance for any dealer new car inventory.
This would be like saying that you are provided insurance on a financed car.
You are required to carry insurance on the collateral and should you fail to do so, the finance provider will purchase insurance on the collateral and charge you for it, but it's silly to try to pretend that your finance company is somehow providing insurance.
That's fact rather than uninformed speculation.
I would believe they are required to because they financed the vehicles. Dealers pay floor plan charges on the vehicles in stock. The manufacturer is not paid in full until the vehicle is sold.
Now I don't know if the manufacturer provides that insurance, but I suspect it is required.
Okay, so why exactly would GM or any other OEM provide insurance for dealer inventory that is in no way their responsibility?
Can dealers purchase coverage?
Of course, and whatever entity is floor planning (financing) that inventory would require this.
It is inaccurate to state that GM or any other OEM simply provides loss insurance for any dealer new car inventory.
This would be like saying that you are provided insurance on a financed car.
You are required to carry insurance on the collateral and should you fail to do so, the finance provider will purchase insurance on the collateral and charge you for it, but it's silly to try to pretend that your finance company is somehow providing insurance.
That's fact rather than uninformed speculation.
I would believe they are required to because they financed the vehicles. Dealers pay floor plan charges on the vehicles in stock. The manufacturer is not paid in full until the vehicle is sold.
Now I don't know if the manufacturer provides that insurance, but I suspect it is required.
I know everyone thinks a flood car is so terrible. In 1992, I purchased a 1990 Camry....loaded with pretty much every option available. Water got up to the hump in the middle of the car.
Replaced the main engine computer, a seat belt control module and took apart the power seat motors and cleaned them up. Never had another electrical related issue with the car. The car came from New Orleans.....
Replaced the main engine computer, a seat belt control module and took apart the power seat motors and cleaned them up. Never had another electrical related issue with the car. The car came from New Orleans.....
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Hopefully the water was drained out of the spare tire well in the trunk.
Originally Posted By: fdcg27
Exactly the opposite, actually.
New or newer cars have more value and are thus less likely to be totaled and more likely to be repaired.
Even if a vehicle is covered as a total loss by an insurer, it'll still go to auction.
The buyer will either crush it, part it or repair and keep or resell it.
I don't think that we should assume that every property/casualty insurer reports anything to Carfax, either.
Finally, the Carfax database may not be all that solid. I've run cars of known history through Carfax and found serious inaccuracies in both chain of ownership and accident damage reported.
I also actually took the time to contact Carfax and point this out.
I received no response from the company. Not an apology nor even an excuse.
Nothing.
I wouldn't place too much reliance upon Carfax as a guide to whether or not any given used car is a good buy or not.
Well dang.
Exactly the opposite, actually.
New or newer cars have more value and are thus less likely to be totaled and more likely to be repaired.
Even if a vehicle is covered as a total loss by an insurer, it'll still go to auction.
The buyer will either crush it, part it or repair and keep or resell it.
I don't think that we should assume that every property/casualty insurer reports anything to Carfax, either.
Finally, the Carfax database may not be all that solid. I've run cars of known history through Carfax and found serious inaccuracies in both chain of ownership and accident damage reported.
I also actually took the time to contact Carfax and point this out.
I received no response from the company. Not an apology nor even an excuse.
Nothing.
I wouldn't place too much reliance upon Carfax as a guide to whether or not any given used car is a good buy or not.
Well dang.
Originally Posted By: SatinSilver
You can go on the copart site, click on "flooded" cars. Lots of them. Good luck.
Cool site thanks
You can go on the copart site, click on "flooded" cars. Lots of them. Good luck.
Cool site thanks
My mom's boyfriend who isn't the sharpest knife in the drawer bought a 1987 Corvette about two years ago. They told me it had new paint, new interior and the dash display didn't work. Car was six grand. I said do not buy that car. I guarantee you it's a Katrina car. Too late. They already bought it. I said send me the VIN so I can see where it came from. They refused. They don't want to know that I'm right.
Car has all sorts of goofy electrical gremlins.
Car has all sorts of goofy electrical gremlins.
Back in 1980 when Mt St Helens erupted in WA state, many thousands of cars were affected by the ash. Volcanic ash is very fine like talcum powder but it is abrasive. For these cars, engines, transmissions, diffs, etc would wear out quickly. Many cars were shipped out to other parts of the US and sold to unsuspecting buyers.
It doesn't take a major flood event like Harvey or Katrina to get burned by buying a flood vehicle. Floods happen all the time and everywhere across the country and beyond. The used car sales industry is complicit in selling these vehicles to buyers. The buyer must beware of course.
It doesn't take a major flood event like Harvey or Katrina to get burned by buying a flood vehicle. Floods happen all the time and everywhere across the country and beyond. The used car sales industry is complicit in selling these vehicles to buyers. The buyer must beware of course.
Originally Posted By: gfh77665
I would not buy a Houston area car right now, AT ALL.
Why not? It's way too soon to have dried out the car. I'd think now is the time to buy. Before anyone has had a chance to dry out let alone ship said damaged cars anyplace.
I would not buy a Houston area car right now, AT ALL.
Why not? It's way too soon to have dried out the car. I'd think now is the time to buy. Before anyone has had a chance to dry out let alone ship said damaged cars anyplace.
In a little while there will be lots of American cars offered on ebay (UK), mostly located in Lithuania, Latvia, or Estonia. That's where lots of flood damage cars end up. Good luck getting redress for any problems.
Claud.
Claud.
Originally Posted By: fdcg27
Okay, so why exactly would GM or any other OEM provide insurance for dealer inventory that is in no way their responsibility?
Seriously? For money. That's the definition of insurance. Party A pays a premium to Party B, Party B agrees to indemnify Party A.
Okay, so why exactly would GM or any other OEM provide insurance for dealer inventory that is in no way their responsibility?
Seriously? For money. That's the definition of insurance. Party A pays a premium to Party B, Party B agrees to indemnify Party A.
Originally Posted By: Ethan1
Originally Posted By: fdcg27
Okay, so why exactly would GM or any other OEM provide insurance for dealer inventory that is in no way their responsibility?
Seriously? For money. That's the definition of insurance. Party A pays a premium to Party B, Party B agrees to indemnify Party A.
First off, when you quote a post, mine or anyone else's, quote the whole thing rather than only a snip that makes it appear that you actually know what you're talking about.
Second, you wrote that GM and other OEMs cover dealer inventory.
I corrected you in writing that dealers were responsible for their own inventories but that they could insure those vehicles and that any entity that financed (floor planned) that inventory would require that they do so.
Duh, exactly what I wrote, had you been able to read the whole of my post.
Originally Posted By: fdcg27
Okay, so why exactly would GM or any other OEM provide insurance for dealer inventory that is in no way their responsibility?
Seriously? For money. That's the definition of insurance. Party A pays a premium to Party B, Party B agrees to indemnify Party A.
First off, when you quote a post, mine or anyone else's, quote the whole thing rather than only a snip that makes it appear that you actually know what you're talking about.
Second, you wrote that GM and other OEMs cover dealer inventory.
I corrected you in writing that dealers were responsible for their own inventories but that they could insure those vehicles and that any entity that financed (floor planned) that inventory would require that they do so.
Duh, exactly what I wrote, had you been able to read the whole of my post.
Originally Posted By: supton
Originally Posted By: gfh77665
I would not buy a Houston area car right now, AT ALL.
Why not? It's way too soon to have dried out the car. I'd think now is the time to buy. Before anyone has had a chance to dry out let alone ship said damaged cars anyplace.
This. The rush is on! Don't let the dealer smell you coming.
Originally Posted By: gfh77665
I would not buy a Houston area car right now, AT ALL.
Why not? It's way too soon to have dried out the car. I'd think now is the time to buy. Before anyone has had a chance to dry out let alone ship said damaged cars anyplace.
This. The rush is on! Don't let the dealer smell you coming.
Originally Posted By: fdcg27
GM and other OEMs insure the inventory of their many privately owned dealerships?
Really?
The answer is in the second sentence of your post.
I used to work at a car dealership, I doubt the OEMs did insure them. They sure as heck didn't finance the cars on the lot while they are waiting to be sold. All dealerships - new or used depend on a floor line of credit from a bank. Spend some time in the sales tower of a dealership and you'll hear floorplan being used a lot, and why dealers are willing to give you a deal on a car that's been sitting on the lot forever.
GM and other OEMs insure the inventory of their many privately owned dealerships?
Really?
The answer is in the second sentence of your post.
I used to work at a car dealership, I doubt the OEMs did insure them. They sure as heck didn't finance the cars on the lot while they are waiting to be sold. All dealerships - new or used depend on a floor line of credit from a bank. Spend some time in the sales tower of a dealership and you'll hear floorplan being used a lot, and why dealers are willing to give you a deal on a car that's been sitting on the lot forever.
Dealers get (or at least used to get) the first 3 months of lot insurance from the manufacturer, after that, it is up to the dealer to pay for it.
This is why cars on the lot for 3 months or more are easier to get deals on, they want them off the lot. If you get one fresh off the truck, they will work a deal sometimes as well since they already have the 3 month payment from the manufacturer.
This is why cars on the lot for 3 months or more are easier to get deals on, they want them off the lot. If you get one fresh off the truck, they will work a deal sometimes as well since they already have the 3 month payment from the manufacturer.
I'd be willing to take a chance on a flood car. I'd have to be super cheap.
Isn't saving a car like that just as important as recycling, saving energy, pollution reduction and all the other planet saving type activities?
Its a waste to automatically crush flood cars.
Isn't saving a car like that just as important as recycling, saving energy, pollution reduction and all the other planet saving type activities?
Its a waste to automatically crush flood cars.
So what would you pay for a new car that was underwater for 5 days,,,if it was a new Corvette,,,,500 bucks...? or 20,000 bucks?
Originally Posted By: CourierDriver
So what would you pay for a new car that was underwater for 5 days,,,if it was a new Corvette,,,,500 bucks...? or 20,000 bucks?
Up to 5 grand.
So what would you pay for a new car that was underwater for 5 days,,,if it was a new Corvette,,,,500 bucks...? or 20,000 bucks?
Up to 5 grand.
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