FLOOD-DAMAGED CARS SHOWING UP IN CALIFORNIA LOTS

By Brent Begin, Bay City News

January 27, 2006, 12:26 a.m.

SAN FRANCISCO (BCN) - California Insurance Commissioner John Garamendi visited the AAA of Northern California auto salvage garage in San Francisco today to warn used-car buyers of a disturbing trend.

Garamendi said Gulf Coast vehicles damaged by hurricanes Katrina, Rita and Wilma are being cleaned up, shipped out and sold in dealerships across the country.

Unsalvageable vehicles have shown up in Arizona, Florida, New York, Oklahoma and now in the Bay Area. Gar Tomkins, a Brentwood automotive recycler, bought a 5-year-old Honda S2000 sports car from Copart Inc., a Fairfield-based Internet auction site.

He thought he was getting a good deal at $7,000.

The Honda appeared to be in cherry condition, but when he checked out the car's history, he discovered it originated in Mississippi despite the Gilroy auto dealership license plate placard.

"This was a deliberate attempt to camouflage this Hurricane Katrina-damaged car that should have been crushed before it was allowed to leave the Gulf Coast," Tomkins said.

The vehicles are posing problems because, while they may look fine, salt-water damage to electrical systems could leave a car's airbag sensors, fuel systems and safety mechanisms permanently damaged.

Garamendi suggested that car buyers take the time to inspect used vehicles. He urged buyers specifically to look for a high water mark on the radiator, check for rust and corrosion on wires, beware the smell of mildew or overwhelming scent of an air-freshener cover-up, and be sure to have a mechanic take a look at the vehicle. Besides common-sense measures, other resources are available. By entering the vehicle identification number on the National Insurance Crime Bureau's Web site at http://www.nicb.org, buyers can view a detailed transfer history of a potential lemon.

"Don't get wiped out by a washed-up car," Garamendi said.

Copyright © 2006 by Bay City News, Inc. -- Republication, Rebroadcast or any other Reuse without the express written consent of Bay City News, Inc. is prohibited.

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