Concern is growing among motorists in the UAE that the used car market may soon see an influx of flood-damaged cars being sold by dishonest owners. The issue stems from the fact that insurance companies are unlikely to cover the cost of flood-related repairs if the owner does not have a comprehensive policy, leading some to try and offload their problem cars onto unsuspecting buyers.
The minimum legal requirement for car insurance in the UAE is a third-party policy, which covers damage caused to others but does not cover the policyholder’s own vehicle in cases of natural disasters like floods. This means that owners of flood-damaged cars would have to bear the cost of repairs themselves.
Adam Whitnall, chief executive of car comparison site Drive Ninja, explains, “When an insurance claim has been denied, it gives people more incentive to try to get rid of a vehicle on the secondary market. They’ll want to get some value from the car, so it’s reasonable to assume a number will end up for sale.”
To combat this issue, experts recommend checking for signs of flood damage before purchasing a used car. Glenn Power, co-founder of Dubai-based repair garage PowerWorks, suggests looking for rust on the underside of the body, around suspension components, and wheels. He also notes that a damp and musky smell or an overwhelming smell of freshness could indicate water damage.
Power advises taking the car to a garage for an independent assessment before making a purchase. He explains that flood damage to a car’s electrics could cause long-term damage if not addressed properly. Power adds that if all damaged parts have been replaced with new ones, there may be no reason not to buy a fully repaired car.
In one example, Power recounts how his garage detected flood damage in a car that the owner had not disclosed. By noticing new number plates on an older car and finding a tide mark inside the headlights, they were able to advise the customer against buying the vehicle.
Additionally, Whitnall suggests testing the car’s electricals by checking the lights, windows, radio settings, and speakers. These simple checks can help ensure that the car has not been damaged by flooding.
While the issue of flood-damaged cars entering the used car market is a concern, Whitnall believes it will not become a major problem. He points out that not all owners whose insurance claims were denied will try to sell their cars dishonestly. With thousands of cars being bought and sold daily, the market is expected to move on quickly from this type of event.
In conclusion, motorists are urged to be vigilant when purchasing used cars and to thoroughly inspect for signs of flood damage before making a decision. By taking these precautions, buyers can protect themselves from falling victim to unscrupulous sellers trying to offload flood-damaged vehicles onto the market.
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