Beware: Chennai Flood-Hit Cars May Be Cheap, but There’s a Catch

Dozens luxury cars being sold for a song. They look great, but do they work?

Can’t believe that luxury cars are being sold for Rs. 17 lakh? You’re right. Don’t believe it just yet.

If you go to a car reseller website today, you might find at least a dozen luxury cars being sold for a song. But don’t get lured by the online deals just yet. The car might look its shiny best but wouldn’t start for nuts.

Many of these cars have been damaged in the Chennai floods in December 2015. Some of them had been submerged for at least a week.

Salem-based T Mathavraj, who is a textile showroom dealer is waiting to drive his Audi A6, a 2014 model, which he bought for Rs.16 lakh.

I hope I made the right choice. When I saw the car in the auction in Thiruvekadu in Chennai, I just got in and began driving. I didn’t have to spend anything on repair. It looked brand new and shiny. But it is yet to be delivered to me.

T Mathavraj.

Christopher Pinson, vice-president of sales and marketing at copart.com says that the website has been receiving hundreds of cars for resale every week. The website has a separate page exclusively for Chennai-floods damaged cars.

We have got many sellers from Chennai and we have buyers coming from across India. Some cars were partly damaged in the Chennai floods. We have sold at least a dozen of luxury cars from Chennai after the floods

Christopher Pinson

Bakiyaraj, from Coimbatore, was initially lured by the cheap prices listed on a second-hand cars website.

I saw a Mercedes Benz 2015 model for Rs.18 lakh. My budget was Rs. 8.5 lakh and I thought I might get lucky with a flood-damaged car on which I could spend a little more to get it running. Later I saw an Innova for Rs. 9.5 lakh and it was beyond my budget to buy a flood damaged car when I could get a new one for Rs.13 lakh. My total budget for a car was Rs. 10 lakh, that is, Rs.8.5 lakh on the car and the rest for repair. So I dropped the idea because I felt it was a big risk.

Bakiyaraj

Most of these cars are beyond repair, says Chennai-based second-hand car dealer Chandrashekar.

The insurance companies have given ‘damaged beyond repair’ certificate to many of these cars. They only go to scrap shop after extra-fittings are sold, if they are of any good. A damaged engine can be replaced and the car might work again, but if the sensors are damaged then there is no other way out

Chandrashekar

These cars are also bought by people who want to use a car for a short while.

“The cars which are being resold will be sold with insurance. But mostly the intention of buyers of such cars would be to use it for a year or two. Sometimes they would just buy it to learn to drive for a year and then give it to scrap shop,” he added.