Wonder what happens to wet new trucks

[Willwork4truck]

Galveston, Houston, Beaumont and other such areas must have a lot of new water damaged trucks now... what does the dealer do with them?

 

[GRAYWOLF]

Claim insurance and auction?

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[Willwork4truck]

Likely. People better be getting Carfax and Autocheck for a while... There's bound to be some unscrupulous sales of flooded trucks happening. There are YT videos about guys who purposely buy them to flip.
"Title washing" goes on to hide the flood write-offs sometimes. I'd be very wary of those trucks down in that area.
In the CARFAX excerpt below, notice how much Texas has as far as flood cars that are still on the road (registered): https://www.carfax.com/press/resources/flooded-cars

Flood Damage Checklist

• Turn on the ignition and check all instrument panel lights illuminate
• Test the interior and exterior lights, air conditioning, windshield wipers, radio, turn signals and heater repeatedly
• View the full CARFAX Vehicle History Report to check for reported flood damage or signs of salvage title fraud
• Get the car checked thoroughly by a trusted mechanic

For video footage of a flood car being cleaned up and made to look cosmetically like a good used car: https://www.carfax.com/press/video-gallery

 

[theonlyMcG]

This is actually a pretty good article on what happens to all of those cars.

What happens to flood damaged cars.

 

[Willwork4truck]

This is actually a pretty good article on what happens to all of those cars.

What happens to flood damaged cars.

That was good for used cars but I'm still a bit unclear about the dealers stock. Aren't those cars actually on a floor plan where the dealer is just paying the factory a certain "fee" and it's actually the car maker who retains title to them as new? If so, then it's the carmaker who has to absorb the loss of all the "spoiled goods". I suppose there are the same auction services that the factory can use.

Basically the question is, if a buyer goes out to these dealerships in say 2-3 weeks, what will the stock there be? Dried out trucks that were not so damaged that they didnt get hauled off or what?

 

[RangerZ]

Dealers have “dealer open lot insurance policies” they’re supposed to report the value of their inventory on a monthly basis to the insurance company. This also covers vehicles that are in for service.

 

[Willwork4truck]

Dealers have “dealer open lot insurance policies” they’re supposed to report the value of their inventory on a monthly basis to the insurance company. This also covers vehicles that are in for service.

So is the dealer on the hook for flood damage (thru their insurance)?

 

[RangerZ]

When a dealer floor plans vehicles they usually (pretty much always) take out loans from a bank or finance company so technically the bank or finance company is the lien holder. It cost a dealer in the range of $5-10 a day per vehicle on the lot. This is where the manufacturer hold back Money comes into play. Most dealers will never get into their hold back money when making a deal. This is the money that covers their butt when a car sits for months and doesn’t sell. So the dealer has insurance to cover their investment. Same as a consumer would have insurance even though they have a lien holder on the vehicle. If you didn’t have insurance on your car and you had a loan the finance company will come after you for the loan money if you total the car
So yes the dealers insurance company would payoff the loan owed to the bank same as our insurance would pay off our car loan in the event of a loss