[Flooded Car Bomb] Bought an Imported Used Car Only to Find It Was Water-Damaged? ... How to Identify

In Cases Where Vehicles with Minimal Flood Damage Are Sold as Used Cars
Include Special Clauses in Contracts and Seek Help from Mechanics and Other Experts

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] This week, record-breaking heavy rains centered around Seoul and the metropolitan area caused large-scale vehicle flooding damage. Typically, flooded vehicles can be repaired and resold as used cars after one or two months, but since there are cases of exploiting commonly known methods to distinguish flooded cars, special caution is advised when purchasing used cars.

According to the General Insurance Association on the 13th, the status of vehicle damage (debris and vehicle flooding damage) reported to 12 general insurance companies due to heavy rains from the 8th to 10 a.m. on the 12th totaled 9,986 cases, with estimated damages amounting to 142.21 billion KRW.

The criteria for flooded cars are not clear-cut. Generally, if the drivetrain system is submerged in water, the vehicle is classified as flooded. Flooded cars should, in principle, be scrapped. Since vehicles are equipped with various electronic components, once flooded, their lifespan inevitably becomes extremely short. Even if repair makes operation possible, corrosion can cause sudden breakdowns, threatening not only the driver but also others' lives.

Nevertheless, vehicles with minor flooding damage sometimes undergo partial repairs and circulate in the used car market, increasing consumer harm. According to a survey conducted by the Korea Consumer Agency in April this year involving 501 people, 64 consumers experienced damage when purchasing used cars, and among them, 15 suffered losses due to the sale of flooded cars.

In particular, since the heavy rain concentrated in Gangnam, a hub for imported cars, there is a forecast that a large number of flooded imported cars may appear as used car listings. According to the General Insurance Association, as of 6 p.m. on the 10th, 2,554 cases of damage to imported cars were reported. The estimated damage amounts to 54.21 billion KRW, accounting for 55.5% of the total damage.

Typically, for high-priced vehicles like imported cars, most cases involve selling them as used cars rather than scrapping. Considering a repair period of one to two months, it is expected that flooded imported cars may flood the used car market after October, so caution is required.

For this reason, various know-how to avoid flooded cars is being shared. Representative methods include: ▲comparing the manufacturing date marked on electronic control units (ECU) and other electronic parts that are difficult to wash with water with the vehicle manufacturing date ▲checking for contamination on electronic parts ▲checking if there is dirt or corrosion in the fuse box ▲checking for dirt or stains when pulling the seatbelt fully ▲whether the seatbelt itself has been replaced ▲shining light through the window gap with the window lowered to check for interior contamination ▲lifting the floor mats to check if the flooring is contaminated ▲checking for mold or musty odors.

However, it is difficult for non-experts to perfectly distinguish whether a car has been flooded. Lim Gisang, head of the Automobile Citizens' Coalition, said, "Since parts like belts are relatively easy to replace, it is not easy to judge a flooded car based on those alone," adding, "Some unscrupulous dealers even improve these parts and emphasize that the car is not flooded, so caution is needed."

Experts advise including special clauses in contracts or accompanying experts such as mechanics when purchasing used cars. Lim said, "Because the scope of flooding is legally ambiguous, it should be clearly stated as ‘traces of flooding’ rather than just ‘flooding’," and explained, "A clause should be included in the contract that allows for a refund if flooding is confirmed."

Additionally, purchasing certified used cars is a good option. Certified used car programs operated by major used car companies such as SK Encar, K Car, KB ChaChaCha, as well as imported car companies, exclude flooded cars from the start. Although prices are somewhat higher, the biggest advantage is reliability. ‘K Car’ announced it will operate a ‘Flooded Car Assurance Program’ until the 30th of next month. If a vehicle is confirmed to be flooded within 90 days after purchase, a full refund will be provided along with an additional compensation of 5 million KRW.