NICB

5 Sure Signs of a Flood Car

August 10, 2018 by admin 4 Comments

How to avoid purchasing a flood car.

The last thing you want to happen when you purchase a used car is to find out after the fact that you bought one that was flooded. This can occur when a car has been through a major catastrophe, such as a hurricane, and has been sent to the salvage yard, then purchased and cleaned for resale.

A so-called “flood car” should indicate that damage on its title. That said, it is not too difficult for unscrupulous people to buy these cars, fix them and have a new title issued, often in states far away from the damage.

You can search for telltale signs of a flooded car and avoid buying a lemon car.

Troubling Signs of a Flood Car

flood car damage

1. Take a deep whiff…or two

Let your senses tell you if something is wrong with a car. Musty smells can be detected in the cabin, trunk or engine bay. There may also be an unmistakable perfume or cleaning solution smell. That smell alone should tell you that something is not right. Why else would a seller try to use a cleaning solution or perfume in a car he is trying to sell?

2. Run your hands across the carpeting

Flood-damaged cars usually have new carpeting. If the carpeting feels too new compared to the age of the car, your suspicions should be raised. If the carpet has not been replaced, run your hands over it to look for signs of staining and fading. A carpet that has been soaked just doesn’t feel right either — the pile can feel rough. Use the same testing methods for the upholstery too.

3. Carefully examine all nooks and crannies

Flip the rear seats over, move the front seats back and forth, and peel away the carpeting. Look closely at the bolts and seat runners — if these appear rusty, then the car has been water-damaged. Check the tire well, storage compartments and door pockets for signs of water. Staining and residual matter could be present — what the seller may have missed when detailing the car.

4. Check the electrical system

Damage to your car’s electrical system may be more difficult to see, but if all of the wires beneath the dashboard are new, then is it quite likely the car has been damaged. Replacing wires won’t mask worse problems such as salt water in the engine, in the transmission or in other components.

5. Explore the trunk or other storage areas

New carpeting in the trunk, a new jack for the spare tire or anything else that doesn’t match with the rest of the trunk should be a warning sign. Check the gasket around the trunk as well as the hood — it could be brittle or new if the current owner has replaced it. Wiring in the tail lamps might also be damaged. Look up and within the trunk lid for signs of rust, discoloration and foul odors.

Perform Due Diligence

You can track your vehicle’s history by obtaining a CARFAX vehicle history report or by visiting the National Insurance Crime Bureau and using its VinCheck service to find out whether a car has been declared an unrecovered stolen or salvage vehicle.

Most importantly, hire a trusted mechanic to inspect your car. He may turn up things you missed or didn’t think to inspect, as well as information not included in the vehicle history report. History reports are a tool, but they don’t tell you everything. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

See Also — How to Check for Flood-Damaged Cars

Disclaimer: This writer is a former contributor to the CARFAX website. He receives no remuneration for this article from CARFAX or any other company.

Photo Credit: Marc Averette

Used Car Shopping Caution: Odometer Fraud

October 13, 2017 by admin 2 Comments

Odometer fraud can cost you dearly.

Consumers looking to buy a used car understand the importance of checking it thoroughly, including the finish for rust and the key components such as the engine and transmission for damage. Brakes, lights, seats, air conditioning, steering and electronics should also be inspected, but there is one problem that is often missed: odometer fraud. Odometer fraud is what happens when the odometer reading is rolled back to mask a vehicle’s actual mileage. The problem affects tens of thousands of cars every month and costs consumers millions of dollars in lost value and unexpected repairs.

About Odometer Fraud

Changing the mileage on the odometer is illegal and can result in fines if the seller is caught. According to CARFAX and as reported by the Orlando Sentinel, a vehicle history report company, more than 190,000 cars are sold each year with their odometers tampered. The cost to consumers is at least $760 million in reduced vehicle value and unplanned car repairs. CARFAX estimates that there are more than one million vehicles on Americans roads with an odometer rollback.

CARFAX notes that older cars, typically those that are 14 to 15 years old, are most susceptible to fraud. These models often have at least 50,000 miles taken off of the odometer before they are readied for sale.

Signs of Fraud

Used car buyers may not be able to entirely eliminate the possibility of getting ripped off, but they can reduce their chances by launching a personal investigation first.

The first step is to visit the National Insurance Crime Bureau website to perform a vehicle identification number check (VINCheck). Enter your car’s unique 17-digit VIN (typically found on your dashboard) to determine whether it was stolen. If clear, you can continue to consider that vehicle.

The second step is to purchase a vehicle history report, offered by CARFAX, VINSmart and AutoCheck. You will pay a fee for these services, but the information provided may alert you to possible problems with that used car. Not all repair information is included, but it can point out potential problems that a visual inspection may not reveal including its use as a rental vehicle or a taxi, whether it was damaged in a flood, and its owner history. Your reports should also include an odometer reading. Compare that reading with your car’s current reading — it should align closely, otherwise tampering may have occurred.

(Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

The third step is to review the seller’s supplied maintenance records. If there are no records present, there is a good chance that something is amiss. If you still want the car, then take it to your mechanic for an inspection. He will visually examine the car and connect it to his computer to print out a report.

Civil Remedies

State odometer laws vary from state to state and may include recovery from damages under state law as well as under federal law. Under the Code of Federal Regulations (CFR), odometer tampering violations include “resetting or altering the odometer with intent to change mileage” and “making false odometer disclosure statement.

“Consumer recourse” includes $1,500 or treble damages, whichever is greater, in addition to attorney costs. An assessment may also be required to determine whether the vehicle’s value has been reduced, its financing, insurance, and tax costs inflated, and unexpected repairs made.

If you are caught committing odometer fraud in Ohio, the first offense is treated as a fourth-degree felony, punishable by 6 to 18 months in jail and a $5,000 fine. The Buckeye State operates a toll-free hotline to report odometer rollback fraud, representing one of the more aggressive consumer protection programs in the US.

Win the Battle

Due diligence on your part can avoid getting sucked into a scam. Recourse is certainly possible, but the hassles you’ll experience can be a time suck.

See Also — NICB Warns Consumers About Storm Fraud

Hot Wheels: Is Your Car More Likely to be Stolen?

September 10, 2015 by admin 3 Comments

Car theft is on the decline, due to better security, including GPS tracking systems. For owners of older vehicles, those models remain targets, largely for the value of those separate parts.

Car thieves continue to do their work despite a significant increase in security systems and GPS technologies that can help thwart or track stolen vehicles. However, it is the older models that are more routinely stolen either for a lack of security apparatus or due to the value of the parts once the vehicles have been dismembered.

Last week, the National Insurance Crime Bureau (NICB) released its annual list of the 10 most stolen vehicles in the United States. The yearly “Hot Wheels” report is based on data supplied to the NICB by law enforcement and includes state specific information based on make, model, and model year.

Help Me Honda

By far, the two most purloined vehicles were the Honda Accord (51,290) and the Honda Civic (43,936). These two models routinely finish atop the annual list and nothing changed in 2014, the year the report examines.

A fifth generation Honda Civic. Source: Wikipedia

A pair of pickup trucks finished in third and fourth place, with the full-size Ford pickup (F Series) tallying 28,680 thefts to 23,196 for the competing Chevrolet Silverado. The Toyota Camry (14,605), Dodge (Ram) pickup (11,075), and the Dodge Caravan (10,483) took the next three spots.

The top 10 was rounded out by the Nissan Altima (9,109), Acura Integra (6,902), and the Nissan Maxima (6,586).

State Statistics Released

On a state level, the NICB hot wheels data revealed some startling information. For instance, more than half of all Accords and Civics stolen were hoisted in California. California is by far the most populous state, but it represents just one-eighth of America’s population.

California, like Arizona and Texas, had a disproportionate number of thefts, likely due to cars being taken to Mexico where recovery is nearly impossible.

Theft Trends by State

Although the two Honda models finished on top in many states, Auto Trends dug through the hot wheels data and found some interesting trends in other states.

A circa 1995 Ford F-150. Source Wikipedia.

For example, the Ford F-150 was the top target of thieves in several states, including Florida, Louisiana, Mississippi, Missouri, New Mexico, South Carolina, West Virginia and Texas. The Chevrolet Silverado (and preceding full-size models) were tops in Alabama, Alaska, Arkansas, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Michigan, Montana, North Dakota, Oklahoma, and Tennessee.

In Wisconsin, three Dodge models took the top three hot wheels positions — Caravan, Stratus and Intrepid. One model that hasn’t been produced in well over a decade, the Plymouth Voyager, accounted for 162 thefts. The greatest number of those models stolen were from the 1999 model year.

Hot Wheels: Easy Pickings

Most of the stolen models date to the 1990s with Accords, Camrys and Civics of that era especially desirable to thieves. However, advanced technologies are making it harder for thieves to steal cars, thus the number of newer vehicles stolen has been falling sharply.

2014 Toyota Camry: Hot Wheels

Among more recent models, the 2014 Toyota Camry
is a theft target. Source: Toyota.

Yet, thieves will grab a new car if they can. The NICB also tracked the top 10 2014 model year vehicles and found that 964 Ford F Series pickup trucks were stolen, followed by the Toyota Camry (869), Ford Fusion (819), the Chevrolet Impala (746) and the Nissan Altima (687).

Other 2014 models that were targeted in greater numbers included the Dodge Charger, Toyota Corolla, Chevrolet Cruze, and the Ford Focus. The NICB also included a scooter/moped made by the Taotao Industry Co. with the statistics, as some 592 units were stolen.

NICB: Layers of Protection

As always, the NICB urges Americans to use common sense in a bid to not be added to the hot wheels statistics. This means keeping vehicles locked and never leaving the keys in the ignition. Tracking, warning and immobilizing devices are also useful deterrents. Thieves may work hard to take your vehicle, but they’ll aim for the easiest targets too.

Steal This Car — With the Keys in the Ignition!

April 29, 2015 by admin 1 Comment

Do you leave your car keys in the ignition? If so, why?

How easy is it to steal a car? Very easy — that is, if you leave the keys in the ignition.

Common sense tells us that leaving keys where thieves can find them is an invitation to the criminal element to make off with that vehicle. Stunningly, 126,603 vehicles were filched from 2012 to 2014 because their owners or someone else who had access to them left the keys in the ignition. That’s one of the findings from the National Insurance Crime Bureau (NICB) in their latest report published this week.

Stolen Vehicle Crime Statistics

Keys in the ignition thefts are on the rise even as overall vehicle thefts are on the decline. The NICB reports that 39,345 cars were stolen in 2012 because they had the keys in them. That number rose to 42,430 in 2013 and to 44,828 in 2014.

Such thefts also compose a greater slice of the overall thefts, rising from 5.4 percent in 2012 to 6.7 percent last year.

Overall thefts stood at 659,717 in 2014, down 5.7 percent from 2013. Remove the 44,828 keys in the ignition thefts figure and that inclusive number would have come in at 614,889 or at a level last seen in 1996.

Thank today’s anti-theft technologies with mitigating vehicle theft. And as additional newer cars replace older vehicles, that total should continue to abate. But helping people steal your car is simply counterintuitive.

The Purloined Conveyance

NICB President and CEO Joe Wehrle reiterated the difficulty thieves have with stealing today’s technologically advanced cars. He also said that he wasn’t surprised by the theft trend and believes the numbers may actually be higher given that some people simply will not admit their mistakes, perhaps fearing that the information will become a matter of police report record or affect their insurance claim.

But there may also be another reason for keys left in the ignition — to commit insurance fraud.

Explained Wehrle, “We also see some cases where the owner gives up the car by leaving the keys in it to allow it to be stolen so that an insurance claim payment can help them get out from under a financial bind. Anyone who does that is committing fraud.”

Theft on the Go

Some thefts occur when people stop their car in front of a store, run inside to buy a cup of coffee or a meal to go, then return to where their car was idling, only to find it non extant. Certainly, those incidences serve as effortless invitations to thieves to abscond with your vehicle.

The NICB also provided the demographic statistics that scrutinized state date. In particular, where keys in the ignition purloining is most egregious.

Surprisingly not, California, the most populous state in the union by far, registered 19,597 incidences. Then we have Texas (8,796) followed closely in succession by Florida, Michigan and Ohio.

Five metropolitan or statistical areas also stood out with Las Vegas-Henderson-Paradise reporting the most of these types of thefts with 6,185 vehicles appropriated. The metropolitan areas representing Detroit, Atlanta, Philadelphia and NewYork City were also conspicuous in this particular enumeration.

The Best Days to Peculate

And for those of you who are statistical wonks, there are certain days of the week, where such thievery is more likely to occur.

Specifically, Saturday saw the most thefts with keys (19,147) followed by Friday (18,719) and Monday (18,647). To be sure, the thieves must be in church on Sunday seeking forgiveness for their sins, accounting for why that day is not in the top three.

But that’s highly unlikely as certain as Monday follows Sunday.

Photo courtesy of Penywise, via Morgue File

In Just 22 Years, Car Theft Rates Have Plunged by 58 Percent

December 18, 2014 by admin 3 Comments

Security technologies help thwart crime.

From 1960 to 1991, car thefts increased five-fold, peaking at 1,661,738 cars stolen in 1991. Since then, theft rates have been falling, coming in at 699,594 units reported stolen in 2013 according to the National Insurance Crime Bureau (NICB). Importantly, the 221 theft rate per 100,000 people is approaching 1960’s rate of 182 vehicles per 100,000 people.

Over the past 22 years, rates dropped sharply until 2000 before rising slightly for several years. The steady decline resumed in 2004 and continued through 2011. Theft rates rose slightly in 2012 before falling again in 2013.

Improved Law Enforcement Efforts

A number of factors have contributed to the steady decrease in car thefts. The NICB points to improved law enforcement efforts, including specialized auto theft investigative units created by local law enforcement agencies. Here, once a theft occurred, police would work quickly to recover the vehicle and, hopefully, arrest the thief with prosecutors gaining a conviction.

Technology has made it more difficult for thieves to steal cars too. Years ago, people would install a steering wheel lock bar and hope that thieves wouldn’t smash a window, break the bar and drive off with the car.

In 1986, LoJack Corporation was formed, offering a stolen vehicle recovery system that was added after vehicle purchase. In this example, the company installs a small, silent radio transceiver in cars and shares its database with the FBI’s National Crime Information Center (NCIC), used by law enforcement agencies across the country. LoJack claims a 90 percent recovery rate for member vehicles.

Automakers and Aftermarket Suppliers

Today, anti-theft technologies are often included in the manufacturing process with security systems, smart keys and other advanced technologies installed. Together, factory and aftermarket security systems have helped drive down theft rates to levels not seen in 50 years.

The NICB notes that hot-wiring a car is no longer an option for thieves. Thus, they will turn to other, more sophisticated methods to steal a car. They can do this by illegally acquiring keys, by tricking locksmiths and dealerships into believing that they are the car’s owner. This problem can be eliminated if customers are required to show their title information or vehicle registration card before keys are issued.

Other theft methods include stealing rental cars. Under this scenario a customer rents a car and keeps it. Or, he may place a GPS tracker in the car and once it has been rented out again, follow the car to its destination and steal it. Other thievery methods include switching vehicle identification numbers (VINs) with an identical make and model car. Also, some thieves create fake financial histories, then visit a dealer, secure financing, obtain a vehicle and then ship it to a foreign port of call where it is resold.

Avoid Theft

Despite the huge drop in car thefts, vehicle owners should continue to follow sound practices to avoid victimization. The NICB identifies several “layers of protection” that car owners should take to avoid theft. These include: locking your doors, removing the key from the ignition, closing windows and parking in well-lit areas. Further, a visible or audible device can thwart thieves as can the installation of a vehicle immobilizer and a tracking system.

Your new vehicle may already have the security devices in place, but they won’t do you any good if they’re not activated. Some cars, such as certain GM OnStar-equipped models, also come with a vehicle tracking system. With this, stolen vehicle slowdown can be activated with police assistance notes the New York Times.

About the NICB

The NICB is a not-for-profit organization with a 100-year heritage formed in 1992 following the merger of the National Automobile Theft Bureau (NATB) and the Insurance Crime Prevention Institute (ICPI). The organization claims membership from approximately 1,100 property and casualty and insurance companies, vehicle finance companies, auto auctions, vehicle rental companies and other entities and partners.

Chart copyright the NICB.

Truck Tailgate Thefts Are on the Rise

February 16, 2013 by Keith Winters Leave a Comment

Owners of Ford F-150, Chevrolet Silverado, Ram 1500, Nissan Titan, Toyota Tundra and GMC Sierra pickup trucks know that these vehicles are prized models. Ideal for their room, payload and towing capacities, large pickup trucks are also prized by thieves and may be stolen, chopped up and the parts shipped reused elsewhere. The National Insurance Crime Bureau or NICB has been tracking vehicle thefts for decades and recently evaluated data involving truck tailgate thefts. The results of that study have been released and offers some important facts about tailgate thefts that just might surprise you.

Theft Trends

The NICB reviewed data going back to 2006, discovering that tailgate theft insurance claims have risen dramatically in recent years. Its data looked at insurance claims from Jan. 1, 2006 through Sept. 30, 2012, with just 23 reports of thefts from 2006 to 2009.

NICB Beginning in 2010, thieves began to concentrate on swiping tailgates, what the Detroit News reported as an easy target, just like truck hubcaps. In 2010, 430 insurance claims were filed, rising to 472 in 2011. Although 2012 data is not yet final, the NICB estimates that 557 claims were filed last year, for an increase of nearly 20 percent. The data reveals that only the tailgates were stolen such claims were not part of a full theft report.

State Data

The NICB report pulled data from 45 states and found that Texas had the most reports of stolen truck beds, with 451 claims filed. Thats about one in three claims or 34 percent, followed by California with 272 clams and Arizona with 125 claims. Put together, these three states comprised nearly two-thirds of all claims.

The NICB also found that the most claims by cities are made in Houston, with 96. San Antonio followed with 70 with Dallas, Phoenix and Fresno, Calif., rounding out the top five cities. About 10 percent of the insurance claims had no city listing, suggesting that the numbers for some locales were actually higher.

Quick Thefts

Like hubcaps, pickup truck tailgates can be stolen in under 30 seconds. That speed alone makes tailgates an opportune and lucrative target for thieves. And unlike hubcaps, truck tail gates typically do not require the use of tools to remove.

To avoid becoming a theft statistic, the NICB advises that owners use an integrated lock if one is included. Most thefts occur because tailgates were not locked. If your tail gate does not come with a lock, installing one is a low cost investment, something you can install yourself.

You can also make it difficult for thieves by parking your pickup truck so that thieves have difficulty accessing the tail gate. For instance, you might consider backing the truck up as close to a wall or other stationary object as possible. Also consider etching the vehicles identification number into the tailgate, a move that will make it easier to identify if it is hawked on the open market. Use your own identification markers as well, documenting that information when you file your loss report.

Replacement Costs

If your truck tailgate is stolen, replacing it does not come cheap. The NICB estimates that tailgates cost about $1,200 to replace, depending on the make, model and color of the vehicle. That price, however, can cost much more if a tailgate camera or other electronic device is embedded within it. Such outfitted truck parts will cost you about $3,600 to replace, which may explain the rise in claims. Such cameras began to appear on pickup trucks just over the past few years, giving thieves an even greater reason to make off with these tail gates.

Considerations

Truck owners should be aware that thieves are targeting personally owned pickup trucks in far greater numbers than commercially owned vehicles. Roughly 90 percent of all tailgate thefts are for privately owned vehicles, suggesting the ease by which thieves have found such thefts to be.

NICB Warns Consumers About Storm Fraud

November 21, 2012 by admin 2 Comments

Hurricane Sandy left a trail of destruction as it slammed the northeastern U.S. coastline in late October. Weeks later, the damage is still being totaled as insurers are paying claims expected to exceed $50 billion. Among the claims filed are for storm-damaged cars, including vehicles that may look fine on the outside, but were destroyed by flood waters. Unsuspecting car shoppers should be aware that some of these vehicles might be resold, with the National Insurance Crime Bureau warning that affected cars may be passed off as undamaged.

Flood-Damaged Vehicles

flood damage cars “Unscrupulous salvage operators and dealers often try to conceal from potential buyers the fact that vehicles have been damaged by a natural disaster,” said NICB President and CEO Joe Wehrle. Wehrle’s organization is working with law enforcement professionals to identify these vehicles so that they are not entered into the National Motor Vehicle Title Information System or NMTIS. That system currently includes more than 88 percent of the U.S. vehicle inventory.

The problem of salvaged vehicles being passed on to consumers came to a head in 2005 following Hurricane Katrina. That storm, plus Hurricane Rita, destroyed hundreds of thousands of vehicles, some that were later cleaned up and retitled in other states. To counter this problem the NICB developed what is known today as VINCheckSM, a service that enables consumers to learn if a vehicle has been declared salvage by a participating member insurance company. That information is available for free to consumers on the NICB website.

Fraud Warnings

Following Hurricane Sandy, the NICB has been working with law enforcement officials while warning that unscrupulous towing companies might take advantage of insurance companies and consumers. The NICB also notes that home contractors will often descend upon a disaster area, promising to make repairs, but taking homeowners cash without doing the work.

In addition to checking the NICB database, consumers can also have a vehicle inspected to ensure that it hasnt been damaged in a flood. Tell-tale signs include carpeting that may have been replaced, lights that are not working, electronic accessories that are malfunctioning as well as signs of a water mark in the trunk, in the cabin or underneath the hood (see How to Check for Flood-Damaged Cars).

Mechanic Inspection

Finally, consumers should always have a used car inspected by a reliable mechanic before following through on a deal. Your mechanic can put your vehicle on a lift, inspect its suspension, brake and emissions systems, and evaluate the vehicle for possible signs of trouble including alerting you to possible damage from flood waters.

See Also — Truck Tailgate Thefts Are on the Rise