Buying used car? How to spot if rains have damaged it

Ashish Jain, a finance professional from Mumbai,  has been looking to buy a second hand car for over four months. But the recent floods may have just washed away his plans. Says Jain, "I had been looking around for a second-hand car for quite some time and within a week after the rains, I received calls from used car dealers that there were a lot of cars up for sale."

While offers are coming knocking, Jain is no longer sure if he should buy a used car now, after the deluge.  

His caution is in tune with what professionals in the know are advising. Keeping in mind the recent deluge, Editor, Autocar India, Hormazd Sorabjee told Moneycontrol, "This is not the right time to buy a used car. Even if you plan to buy a car now, you need to be extremely careful."  Sorabjee feels that there is a possibility of the prices coming down in the used car market. This could be to push sales ahead, as the demand for used cars may become less after the rains. Even if prices fall, Sorabjee warns that buyers need to exert care and caution when buying a used car now.

What the Mumbai rains did to cars - 50,000 cars damaged across Maharashtra - 6 to 7 rain hit cars land up in a garage in a day - 50% of cars in garages extremely damaged - ECM, Car engine most affected

Car dealers admit that rain hit cars are selling for a song. According to Ayaaz Fazulbhoy of Fazulbhoys Motors, "Prices of water-hit cars have fallen. Drenched cars may come at prices 25% to 50% lower than other cars. Such cars may be sold to unsuspecting customers."

Further, he says that there is a higher probability that such cars are sold in rural areas than in the city. "Even if people try to sell such cars to us, we run through a complete check. Till now, we have taken no drenched cars." He admits that the rains have affected the used car business. Fazulbhoy says that buyers have become very cautious and get people who can look for tell-tale clues. However, he refused to disclose the number of used cars bought after the rains.

So if you're insistent on buying a used car now, here's what you need to keep in mind.

Water logged cars are seeping into the market
While dealers maintain that all is good and fine, cars that have been damaged in the rains are slowly starting to trickle into the used car market. It is estimated that nearly 50,000 cars across Maharashtra, have been damaged due to the floods. Vinay Sinha is one of the many distressed car owners in the city, who had to shell out lot of money on repairing his two year old Maruti Zen LX, after the heavy rains.  "I spent about Rs 25,000 in fixing my car. I don't want to hold the car for long, I think I would rather sell it," he says. 

Buying a used car? Keep these in mind: - Drenched cars are getting into the    market - Car quality is a big question - Loan and Insurance could be tough - Warranty may not cover costly parts

The rains sure seem to have depressed the prices in his case. Says Sinha, "They (second-hand dealers) said my car would be put to check because there was a high possibility of ECM damage. In the worst case, they told me I would get Rs 1.7 lakhs."  Under normal conditions, if the car had not been damaged by rains, Sinha would have get a deal of Rs 2 to 2.1 lakhs on the same car. 

Dealers, while admitting the fact that water flooded cars are coming in, also claim that they are being extremely careful about taking such cars. Says Surendra Gandhi of Bharat Auto Associates, that specializes in auto care and also sells used cars, "There are people who are trying to sell such cars but we are very careful about taking them."  He further adds that submerged cars that come for servicing, are repaired as per valuations and handed back to the owners and requests for sale of those cars are not being entertained.

Garages have seen a sudden spurt of activity post the heavy rains. According to the owner of Satguru Automobiles in Wadala, "In the first week, we got about 40 to 45 cars and we continue to get 6 to 7 rain-affected cars per day."

But, however careful dealers are, there is no guarantee that you won't land up with a waterlogged car. For someone who is keen on a used car now, the probability of running into a flood-affected car is quite high. Says Sorabjee, "It is essential to check basic particulars like the condition of the seat, the engine and any signs of accidents. In addition, you need to check the electrical and electronic components of the car."

Read on Page 2: Car quality is a big question