what do the dealerships do with flooded vehicles?

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  #1  
Old 11-23-11, 07:01 AM
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what do the dealerships do with flooded vehicles?

I'm curious to know what the new car dealerships do when vehicles on their lot are damaged by flood?
I recently heard about a dealership in upstate NY that had a flood and all 60 brand new cars were sent to the junk yard to be sold off for parts.

Does anyone know if that is always the case? I can't imagine a reputable dealer selling a flooded car as 'new'? or even offering the same factory warranty on a flooded car?

anyone in the industry know about this stuff?
 
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Old 11-23-11, 07:13 AM
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I'm sure it depends on the dealership and the extent of the flooding. I've seen big sales for hail damaged cars around here but no real flooding I can recall that affected any car dealerships.
 
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Old 11-23-11, 07:49 AM
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I can understand a hail damaged vehicle getting repainted and sold at a discount, but I'm thinking about 2 to 3 feet of water flooding a car lot. with all the electronics etc. Seats getting soaked with sediment (and other stuff) filled water, soaked carpeting and sediment behind door and dash panels. If there was more than say 3 feet of water, it would get into the cylinders, transmission through the dip stick etc.
would you think a car like that could be salvaged at all?
 
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Old 11-23-11, 08:21 AM
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Could it be salvaged? Sure. Would a dealership want to incur that expense and hassle? Probably not.

I think your scenario would lead to the cars being sold to a salvage yard most of the time.
 
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Old 11-23-11, 09:14 AM
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On new cars they file insurance claims, and depending on the damage, vehicles maybe scrapped with legal requirements to do so from the manufacturers. Minor surface metal damage could be repaired under insurance which is no different than minor transport damage found when the vehicle arrives at the dealer, but in the case of hail, this would have to be disclosed to the buyer along with any special discounts applied, but only if the damage was very minor on a new vehicle. Each situation is treated as required. In your example around major water damage to new vehicles, most would be scrapped, and this process would be audited to make sure none entered the market again as new somehow. Reputations are worth far more, and far harder to restore than looking for some minor cost avoidance in the big scheme of things. It is all determined by the insurance contract agreements around disposition and or allowance for any repair.
 
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Old 11-23-11, 09:16 AM
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.... or at an auction where some unscrupulous dealers will pick them up and resell them. Probably a lot harder to do today now that there are services like carfax.
 
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