The deluge that caused more than $1billion damage to swamped homes and businesses in Newcastle in June may also have flooded the used-car market with water-damaged vehicles. Auction houses have seen an influx of vehicles selling for astoundingly low prices, but unsuspecting buyers thinking they’ve got a bargain may have a flood-damaged car instead. The vehicle may look good but water damage can raise its ugly head months or years later, according to David Carr, Manager of Motoring Advice for NRMA Motoring & Services.

“Flood water can cause corrosion in the electrical connectors leading, in severe cases, to short circuits,” David told Open Road.

“These faults may not be apparent at the time of purchase and can be difficult to locate and repair.”

He said flood-water corrosion could also cause moving components to rust together, making repairs dearer.

“Water can also damage the engine, transmission and final drives and without dismantling the units, this is difficult to diagnose,” David said.

Health problems could arise through dampness, mould and excessive condensation.

With auctions the main market for these vehicles, followed by private sale, buyers should be wary of anyone selling a car that has recently been bought at auction, or whose back yard looks like a car yard.

Watch out for cheap cars that may or may not be registered and newly registered cars that have been cheaply repaired.

The RTA, alerted to write-offs through the Written Off Vehicle Register, determines whether such a vehicle can be repaired.

Those deemed irreparable have their VIN removed and cannot be re-registered. Repairable vehicles must have the necessary work done and be declared roadworthy by the RTA before re-registration.

The buyer of a vehicle that has been reported to REVS as a repairable write-off may have difficulty re-selling later or getting the price desired - even after spending thousands of dollars repairing it.

Inspection Checklist

NRMA says the following may help to identify any water damage:

• Water or condensation in exterior lights
• 'Tide marks’ at the carpets and door trims
• Dampness or musty smells
• Shrunken carpet
• Missing or ill-fitting drain plugs
• Surface rust at brackets under dash and under seats, although some light rust here is considered normal for older cars
• Difficult-to-operate door locks, ventilation controls and switches

An owner who wants to keep a flood-damaged vehicle should:

• Free drain holes from obstructions
• Check for dampness or mould and replace carpets if affected
• Listen for noises that get louder with speed and time, which could indicate imminent bearing or driveline failure