Page 13 - GIADA-Oct 2017-Final

INDUSTRY INSIGHT

5 Ways to Spot Finer Points of Potentially

Weather-Damaged Vehicles

By Auto Remarketing Staff

An auction operator who likely saw at least means damp upholstery or wet engine tips,” he said. “It could wind up saving you
some of the rain from Hurricanes Harvey components that could ultimately be thousands of dollars in the end.”
and Irma spelled out his five points to dried and restored, Tomchay pointed
consider as the industry watches for flood- out salt water damage is something Flood damage isn’t the only
damaged vehicles. altogether different. hurricane damage.
5 Tomchay also mentioned small sized
Chris Tomchay, co-founder and chief “Salt causes significant corrosion which, hail on a light colored exterior could go
operating officer of The Appraisal Lane in the long run, can cause big problems to unnoticed, as could sand blasting from
and co-owner of the Georgia-Carolina the major components of a car, including high winds.
Auto Auction, shared his five thoughts as the steering and electrical systems, the
estimates approach 1 million units being transmission, the undercarriage, the fuel “Be sure to closely inspect a car’s exterior
impacted by the consecutive Category 4 system, the body panels, and much more,” in proper lighting, preferably in sunlight
hurricanes to touch the U.S. Tomchay said. and from various angles,” he said. “If you’re
still unsure, solicit an inspection from a
“Apart from the basics, there are other He added that while some waterlogged qualified body repair shop.”
telltale signs that dealers and private parties vehicles with minor damage can represent a
should pay attention to when it comes to good value, it’s important to know the type Tomchay concludes that if dealers are still
signs of hurricane-related damage,” said of water that caused the damage. uncertain when it comes to evaluating a
Tomchay, whose auction is located 70 miles potential hurricane damaged vehicle, or
northeast of Atlanta. “Information is power, Flood damaged vehicles can break off-brand/one-off inventory, a community
so arm yourself with as much knowledge the bank — but they can also come approach to appraisals is best — one that
as possible to avoid getting burned on the 3 at a value. connects you with expert appraisers in real
bottom line.” Tomchay acknowledged that certain time, backed by cash offers.
flood damaged vehicles represent a
Here are Tomchay’s five additional tips: value depending on the extent and type “Evaluating vehicles based on the law
of damage. of averages is particularly risky, not to
A clean history report doesn’t always mention trying to evaluate vehicles that
mean a clean vehicle. “I’m all for buying a car at ($0.50) on may have been damaged during this volatile
1With widespread hurricane damage the dollar if it was submerged to the floor hurricane season,” he said.
in Florida and Texas in recent months, in fresh water, or purchasing a vehicle for
and with Tropical Storm Nate now bearing ($0.75) on the dollar if it was stranded The Appraisal Lane — a Silver Sponsor at
down on the Gulf Coast, Tomchay explained on a ship in a salt water port and the Used Car Week which begins on Nov. 13 in
that it’s important to note that dealers can’t manufacturer merely voided the exterior Palm Springs, Calif. — consists of vehicle
always trust a clean vehicle history report. paint warranty,” he said. “It really depends appraisers whose singular responsibility
on the situation.” is to evaluate thousands of vehicles each
“Sometimes there is lag time in the month across all makes and models. The
reporting of flood damaged cars to vehicle Beware of out-of-state registrations. company’s mobile app can connect dealers
history reporting organizations. Even 60 If a vehicle that is registered in a with a larger community of appraisers and
or 90 days, at this juncture, is enough time 4 known hurricane-havocked region buyers to receive real time cash offers on
for a vehicle that would otherwise been suddenly shows up for sale in your inventory.
deemed as ‘salvage’ or ‘totaled’ to be sold to Northeast or Midwest market, Tomchay
an unsuspecting buyer,” he said. recommended that dealers should be extra For dealers interested in more information
diligent — particularly now. about The Appraisal Lane, visit www.
There’s a big difference between salt theappraisallane.com or send a message to
water and fresh water damage. “Take a little extra time to evaluate the marketing@theappraisallane.com. n
2 While fresh water submersion vehicle using The Appraisal Lane’s SMART

GIADA Independent Auto Dealer OCTOBER 2017 | 11