The damage from Hurricane Irene is going to be felt for months, if not years, to come in the used car industry as flood-damaged and hurricane-damaged cars come on the market. Be prepared so you do not buy a hurricane-damaged used car.

Hurricane Irene is just one example of hurricanes that have struck the U.S. and caused major damage that affected the used car market with the potential for thousands of used cars with either hurricane damage or flood damage a real possibility.

Buying a Used Car in Hurricane Irene's Wake

In the wake of Hurricane Katrina, which caused massive property damage (as well as large-scale human casualties), states like Illinois passed specific laws to protect consumers from buying hurricane-damaged or flood-damaged used cars.

As this article is being written on Aug. 28, 2011, Hurricane Irene has passed from North Carolina north through New York City and then up into northern New England. It created a wide swath of damage with heavy winds and rains that could create hundreds, if not thousands, of flood-damaged and hurricane-damaged used cars.

What To Do When Buying a Used Car after a Hurricane

The first two weeks after a hurricane hits are the most volatile because that is when consumers have the least protection from deceptive used car dealers.

Let's look at three scenarios:

• A used car under contract that is ready for pickup
• A used car deal too good to be true
• A used car sold by a displaced person

Used Car Under Contract

Let's say you had the misfortune to sign a contract on a used car and come to pick it up only to discover your used car dealer cleaning up from flood damage.

Some dealers might tell you that your used car was moved before the storm and has had no damage. There's nothing wrong with it, goes the claim, and will be ready for pickup in a couple days.

The used car dealer (a dishonest one I should stress) is going to ask for a couple of days because of various delays in doing paperwork, their help can't come in, etc. What they are really asking for is a couple days to clean up your used car so it can be passed off as good to go.

If this has happened to you, or some similar variation, make sure you have your used inspected by a pre-purchase inspection company like AiM or a trusted mechanic. I've seen the inspection process done by AiM and can recommend it.

Stand your ground on doing an inspection even if you have already signed the contract. Substantial damage to a used car is going to allow you to void the contract. You might need a little help from your local consumer protection department but buy no used car that has been damaged since you signed a contract. The About.com U.S. Government info site on consumer protection can get you started if you need help.

Used Car Deal Too Good To Be True

It happens after hail storms. New cars are sold with hail damage at discounts because the damage is only cosmetic.

Unscrupulous used car sellers might try selling used cars at discount prices without disclosing why the used cars are being sold cheaply. These could be used cars moved from hurricane states to non-hurricane areas.

Even doing a CarFax report may not help you. CarFax relies on reports from government agencies and used cars sold within a month of a major weather event just aren't going to reflect what the vehicle has been through.

You're going to want to do your homework and find out where the used car was before you bought it. This means you need to Google the phrase "Hurricane Irene Path" (or the name of a later storm) and see if your used car was in its path. Be suspicious if a used car suddenly shows up in your buying area from a part of the country that was affected by Hurricane Irene. Odds are good that something is wrong with it, which is why it's so cheap.

Used Car Sold By a Displaced Person

It's just human nature to want to help out a fellow human being. What's more touching than the tale of woe of somebody who lost everything in a hurricane, has relocated and needs to sell his or her car to make ends meet?

You might come across this kind of seller in the craigslist used car listings, which are a huge breeding ground for scams. The seller will claim to have come from the hurricane area, needs to sell the car quickly, has nothing left to his name but his car, which he is willing to sell at a discount.

Just like humans like to help others, we also can't resist a good deal, especially if there is a tale of woe attached. We tend to let down our guards in these situations. Make sure you see the title before the deal is completed. Klaxon bells should go off in your head if the used car has been titled from the state where it is being sold (or any non-hurricane state).

What should make you especially suspicious is if the used car is owned by a dealership. Make the seller explain why the vehicle is not from the particular state is supposed to be and why it is owned by a dealership. It will be fun to see them squirm and don't buy the used car whatever you do.

Dishonest sellers always try to move bad used cars especially if they are hurricane-damaged used cars or flood-damaged used cars. Don't buy them.