Most people who purchase a used vehicle do so with the expectation that the dealership is being upfront about the condition of the car they are buying. After all, when you spend thousands of dollars on a vehicle, you should be able to trust that there are no serious hidden issues lurking beneath the surface. Unfortunately, this is not always the case. Sometimes, people discover that the vehicle they purchased was previously involved in a flood after electrical systems begin malfunctioning, mold starts developing, or the car suddenly becomes unreliable altogether. Please continue reading to learn more about undisclosed flood damage and how a New Mexico consumer lawyer may be able to help if you believe you’re a victim of car dealer fraud.
How can you tell if a car may have flood damage?
Unfortunately, flood damage is not always immediately obvious. In many cases, dealerships or prior owners will cosmetically clean a vehicle before placing it up for sale, which means a car may appear perfectly fine during a test drive while serious issues continue developing internally. That is why it is important to understand some of the common warning signs associated with flood-damaged vehicles. Some potential indicators of flood damage can include the following:
- A strong mildew or musty odor inside the vehicle
- Rust underneath seats, around door hinges, or inside the trunk
- Damp carpeting or moisture underneath floor mats
- Electrical issues involving power windows, lights, or dashboard systems
- Fogging inside headlights or instrument panels
- Mud, dirt, or debris in difficult-to-clean areas
- Signs that upholstery or carpeting was recently replaced
You should also understand that many flood-damaged vehicles are transported across state lines after hurricanes or major storms. In some cases, a vehicle that sustained serious water damage elsewhere may ultimately end up on a dealership lot in New Mexico months later.
What are a dealership’s obligations when selling a vehicle?
Generally speaking, dealerships are prohibited from engaging in deceptive business practices. This means that if a dealership knew a vehicle had sustained flood damage and intentionally failed to disclose that information, there is a very good chance that serious legal issues may arise as a result. In certain situations, dealerships may even attempt to actively conceal flood-related issues through cosmetic repairs or misleading statements regarding the condition of the vehicle. A dealership may potentially face liability if it:
- Misrepresented the condition or history of the vehicle
- Failed to disclose known flood damage
- Advertised the vehicle as safe or reliable despite known defects
- Concealed evidence of prior water intrusion
- Provided inaccurate vehicle history information
- Attempted to minimize or deny obvious signs of damage
What should you do if you discover undisclosed flood damage?
Discovering that your vehicle may have sustained prior flood damage can be incredibly frustrating, especially when repair costs begin piling up, and the vehicle itself becomes unsafe or unreliable to drive. Because of this, it is important to act quickly and begin documenting everything as thoroughly as possible. If you suspect undisclosed flood damage, you should consider taking the following steps:
- Have the vehicle inspected by a qualified mechanic
- Save all repair invoices and diagnostic reports
- Obtain a vehicle history report
- Keep copies of advertisements and sales paperwork
- Photograph any visible rust, corrosion, or water damage
- Document all communications with the dealership
Finally, if you believe a dealership failed to disclose flood damage before selling you a vehicle, you should strongly consider speaking with an experienced New Mexico car dealer fraud lawyer who can evaluate your situation and determine what legal options may be available to you going forward. Make sure to act fast, as it is important to collect relevant evidence.
