A controversial bill has just passed in the House by a 73-25 vote. This legislation would raise the threshold at which water damage to vehicles must be disclosed when sold in Virginia. Currently, if a car has been damaged by a flood or water and the repair costs total more than $1,000, it must be disclosed. The new bill will raise that amount to $5,000.

On the one hand, the $1,000 figure was set in the 1960s, when cars (and dollars) were valued much lower. But on the other hand, consumer advocates are now worried that the higher threshold in Virginia will make the state a dumping ground for previously flooded cars, since they’ll be easier to sell there.

Every year, tens of thousands of cars are damaged by water – moreso in years where there are major hurricanes. For example, in 2008 Hurricane Katrina left over 100,000 cars submerged. CARFAX estimates that over half the cars that were damaged by floodwater end up back on the road again.

Flooded cars are often fixed up aesthetically and then shipped to other states to be sold to unsuspecting customers. Meanwhile, there is potential lasting water damage to the used engine, the computer system and electrical system and the anti-lock braking system that isn’t apparent until too late.

Flood water disclosures are useful for consumers wishing to avoid lemons, but with changes like the ones proposed in Virginia, car buyers want to take some additional steps. When buying used cars, always purchase a vehicle history report. This report will tell you if the car has ever been registered in high risk flood areas. If it has, you may want to get a pre-purchase inspection to ensure that it wasn’t subjected to water damage.

Beyond hiring a mechanic, there are a few measures you can take to identify telltale signs of waterlogging:

• Check for signs that the interior upholstery has been replaced. If certain parts are relatively more discolored, faded or are ill-fitting, they may have been swapped out.
• Search for silt, rust or mud in the trunk, glove compartment, dashboard, beneath the seats or in the trunk.
• Ensure that all the warning lights and accessory lights and gauges come on when you turn the key in the ignition. Electrical problems can be indicative of water damage.
• Examine the wires beneath the dashboard. Flex them and see if they are brittle. If they crack or appear fragile, they may have been damaged by water.

 
These steps may help you identify an obviously water damaged car, but keep in mind that many unscrupulous used car dealers are very adept at hiding the telltale signs of previous damage.

Your best bet is always an inspection and review of the car’s history report.