Bought a used car from a dealer - mechanic says it has flood damage that wasn't disclosed. What are my options?

Bought a 2021 Honda Accord from a used car dealership 6 weeks ago for $24,000. Seemed like a great deal - low miles (32k), clean Carfax, looked perfect.

Last week the car started having electrical issues - dashboard lights flickering, infotainment system freezing, power windows not working right. Took it to my mechanic who put it on a lift and said there's clear evidence of flood damage:

• Mud/silt residue under the carpets and in the spare tire well
• Corrosion on electrical connectors that shouldn't be there
• Rust in places that shouldn't have rust on a 3-year-old car
• Water line visible inside the doors when panels were removed

The Carfax shows no flood damage or salvage title. I'm guessing it was "washed" (title washed) from another state.

The dealer is saying they "had no idea" and sold it to me "as-is." Is that even legal? What can I do? I'm in California and I feel completely scammed.

California auto fraud attorney here. This is unfortunately common and you have several strong legal options.

Key legal points:

• Dealers have a duty to disclose known material defects. Flood damage is absolutely a material defect. The "as-is" language doesn't protect them from fraud or failure to disclose known defects.
• California Consumer Legal Remedies Act (CLRA): Selling a flood-damaged vehicle without disclosure violates the CLRA. You can recover your damages plus attorney's fees.
• California Vehicle Code Section 11713: Dealers cannot make untrue or misleading statements about the condition of a vehicle. Failing to disclose flood damage when they knew or should have known is a violation.
• Fraud: If they knew about the flood damage (which is likely - dealers inspect cars before sale), this is actual fraud, which opens up punitive damages.

The "we didn't know" defense:

Dealers have a legal duty to inspect vehicles. The signs your mechanic found would have been visible during a competent inspection. Courts often reject the "we didn't know" defense because dealers either knew or should have known.

How do I prove they knew? They're going to claim they just bought it at auction and resold it without looking closely.

Also, the Carfax is clean. How can there be flood damage with no record of it?

This is a well-known scam in the auto industry. Here's how it works:

1. Cars get flooded in hurricanes (Florida, Texas, Louisiana are the big ones)
2. Insurance declares them total loss and issues a salvage/flood title
3. Scammers buy them cheap at salvage auctions
4. They "wash" the title by registering the car in a state with lax title laws (states like Mississippi, New Mexico, and some others don't always carry over salvage brands from other states)
5. Car now has a "clean" title and Carfax may not show the history
6. They do cosmetic repairs, detail it, and sell to unsuspecting buyers

This has been happening for decades but got way worse after Hurricane Harvey (2017), Hurricane Ian (2022), and other major floods.

Carfax isn't perfect - it only knows what gets reported to it. If the title washing happens right, the flood history disappears.

30-year mechanic here. The signs your mechanic found are definitive. Mud under carpets, corroded connectors, and rust in sealed areas don't happen without water submersion. Period.

Here's what you need to do:

1. Get a full written inspection report from your mechanic documenting every sign of flood damage. Have them photograph everything.
2. Check the NICB VinCheck (National Insurance Crime Bureau) - it's free and sometimes catches flood titles that Carfax misses.
3. Run the VIN through NMVTIS (National Motor Vehicle Title Information System) - this is the official federal database and may show title history Carfax doesn't have.
4. Request the vehicle's title history from the California DMV - you may be able to trace where the car was previously titled.

One more thing: flood-damaged cars are ticking time bombs. Electrical issues are just the beginning. Corrosion will continue to spread, and you'll have failures in unexpected places for years. The car is essentially worthless.

To address the "how do I prove they knew" question:

You often don't have to prove actual knowledge. Under California law, dealers are held to a higher standard than private sellers. They're supposed to inspect vehicles before sale. If the flood damage signs were visible during a reasonable inspection (and they clearly were), the dealer either:

• Knew about it and didn't disclose (fraud)
• Failed to conduct a proper inspection (negligence)

Either way, you have a claim.

Evidence that helps:

• Auction records showing where they bought the car and for how much (a suspiciously low purchase price suggests they knew it was damaged)
• Title history showing the car was previously titled in a hurricane state
• Evidence they've sold other flood-damaged cars (pattern of fraud)
• Expert testimony from your mechanic that the damage would have been visible during inspection

An attorney can subpoena the dealer's records during litigation.

Ran the VIN through NMVTIS. Found something interesting:

The car was titled in Louisiana in 2022, then Mississippi in early 2023, then California later in 2023. Louisiana is where Hurricane Ida hit in 2021. The timing lines up perfectly.

Also, the NICB check came back showing the car was reported as a total loss by insurance in Louisiana in September 2021.

So there IS a record of this - the dealer just used Carfax which didn't have it, and I trusted them.

Bingo. You've got them. A total loss record from Louisiana, followed by title washing through Mississippi, then sold to you with a "clean" Carfax? This is textbook flood car fraud.

The fact that NICB has the total loss record means the dealer could have found it too if they did basic due diligence. "We didn't know" becomes "we didn't bother to check" which is negligence at minimum.

Start documenting everything and consult with an auto fraud attorney ASAP. You may have a case worth significantly more than just the $24,000 you paid.

I went through almost the exact same thing last year. Bought a 2020 Toyota Camry from a small dealer, discovered flood damage 3 months later. Here's what happened with my case:

• Hired an auto fraud attorney (worked on contingency, no upfront cost)
• Attorney sent demand letter threatening CLRA lawsuit
• Dealer offered to take car back for refund - I refused because I wanted damages too
• We filed suit
• During discovery, we found they bought the car at auction for $8,000 (I paid $22,000) - they knew it was damaged
• Case settled for $45,000 - full refund plus damages

The CLRA's attorney fee provision is powerful. Dealers know they'll have to pay your attorney fees if you win, so they often settle.

Went back to the dealer with the NICB report and NMVTIS history. Demanded a full refund plus my inspection costs.

The sales manager got defensive, said I was "trying to scam them" and that the car "was fine when we sold it." When I mentioned the word "attorney" and "CLRA," suddenly the general manager came out and said they'd "look into it."

They're supposed to call me back tomorrow. Not holding my breath. Already have a consultation scheduled with an auto fraud attorney for next week.

Good move scheduling the attorney consultation. A few things to prepare:

• Bring all documentation: purchase contract, loan documents, Carfax they provided, NICB report, NMVTIS results, mechanic's inspection report with photos
• Calculate your total out-of-pocket: purchase price, taxes/fees, loan interest paid, inspection costs, any repairs you've made
• Document any communications with the dealer in writing

Also worth knowing: California has a Car Buyer's Bill of Rights that requires dealers to provide a 2-day cancellation option on used cars under certain conditions. If that was violated, you have additional claims.

The dealer's reaction of accusing you of being a scammer is typical defensive behavior. They know they're caught.

Reminder: Please don't post the dealership name in this thread. While we understand the frustration, naming the business could expose the forum to liability. Once you have a legal resolution, reviews on appropriate platforms are the right place for warnings to other consumers.

Update: Dealer called back and offered a refund of $20,000 (not the full $24,000 I paid) if I sign a release. They claim that's fair because I "put miles on the car."

I declined and met with the auto fraud attorney. She was very interested in the case. She's going to send a formal demand letter citing CLRA and asking for:

• Full refund of purchase price ($24,000)
• All taxes, registration, and fees (~$2,400)
• Loan interest paid so far (~$600)
• Inspection and documentation costs (~$350)
• Statutory damages under CLRA
• Notice that we'll seek attorney's fees and punitive damages if this goes to court

She said these cases often settle quickly once dealers realize they'll be paying attorney fees on top of everything else.

The $20,000 "offer" is insulting. They know the car is worthless as a flood vehicle - they're trying to keep $4,000 of your money for a car that can't be legally resold in California without flood disclosure.

Glad you have an attorney. Don't settle for anything less than full refund plus all your costs. They committed fraud and should pay for it.

Final resolution! After the demand letter, the dealer's insurance company got involved. They knew they were going to lose if this went to court.

Settlement terms:

• Full refund of $24,000 purchase price
• All taxes and fees refunded (~$2,400)
• Reimbursement of loan interest ($620)
• Inspection and documentation costs ($350)
• Additional $5,000 as damages for the "hassle" (their words)
• They take the car back
• My loan is paid off directly by them

Total recovery: approximately $32,370 plus having my loan paid off. My attorney worked on contingency so her 1/3 came out of the additional damages, not my refund.

Lessons learned:

1. Carfax is not gospel - check NMVTIS and NICB too
2. Get a pre-purchase inspection from an independent mechanic
3. Be suspicious of "great deals" - they usually aren't
4. If you get scammed, fight back - the law is on your side

Thanks everyone for the advice!

Just bought a used car yesterday and this thread had me terrified. First thing I did before signing was check NMVTIS - clean. Then I checked NICB - clean. Then I had an independent mechanic inspect it - no signs of flood damage.

This thread saved me from potentially making a huge mistake. Even if my car turned out fine, I now know what to check. Thank you for sharing your experience!