Learned your used car was previously in a flood? Everything you need to know.

Flooding due to severe storms or hurricanes often results in a large number of cars being immersed in water. The extent of the damage varies depending on whether the flood involved salt, fresh, or muddy water, as well as the length of time the vehicle was under water. What most people don’t know, however, is that many of these flood cars are cleaned up and resold on the used vehicle market.

How Does a Dealer Get Away With Selling a Flood Car?

The only way to profitably sell a flood vehicle is to conceal its history from the buyer. A dealer can buy a flood car for less than wholesale price, clean the vehicle up, and sell it to an unsuspecting buyer as a clean vehicle at full retail price. Because of lax vehicle title laws, a substantial number of flood vehicles may even come with clean titles.

Why Should I Care if My Car Was Previously in a Flood?

Flood cars present significant performance and safety issues for unsuspecting buyers. For example, a vehicle's electrical and computer systems--including brake and steering systems--are often compromised by water damage. Water submersion may also cause damage to the vehicle's frame or structural components and often leads to mold growth in the car's interior. These problems may not appear for months or even years.

Second, even if the vehicle doesn’t have any physical problems, you almost certainly overpaid for it. A vehicle with a flood history will almost always be worth less than a clean vehicle. The reason is simple: most people won't buy a vehicle with an flood history, and they definitely won't pay clean retail price for it.

Another third reason is that it will be nearly impossible to trade in a flood vehicle. One of the first things a dealer does when evaluating a trade-in is pull a CarFax report. If the report shows a flood history, the dealer is sure to pass on your trade.

I Think I Bought a Flood Car, How Do I Know For Sure?

The symptoms of a flood vehicle are pretty obvious, if you know what to look for. Here are the tell-tale signs:

• Musty or moldy smell;

• Rust or flaking metal on the vehicle's undercarriage;

• Electrical components, such as radio, speakers, windshield wipers, or door locks that don't work;

• Any signs of water damage, mud, sand, or silt.

You can also order a CarFax report, which contains information about a vehicle’s history. But keep in mind that these reports don’t always provide a complete picture and there is often a lag between when a vehicle is, say in a flood, and when that information shows up in CarFax’s database. When in doubt, have the vehicle inspected by an expert.

Is Selling a Flood Vehicle Illegal?

Not necessarily, at least in Minnesota. Generally, there are four scenarios that can give rise to legal claims under Minnesota law:

• If the vehicle title has a flood “brand” or stamp and the dealer doesn’t tell you;

• If the vehicle is not roadworthy at the time of sale due to the flood.

• If the dealer knows the vehicle has been in a flood and lies to you when you ask about it;

• If the dealer knows that the vehicle has suffered damage in excess of 70% of its cash value due to the flood and doesn’t tell you;

There is quite a bit of nuance to all of these scenarios and a detailed legal analysis is necessary to determine whether the dealer broke the law in your case.

Just learned you bought a flood vehicle?
Get a consult with auto fraud attorney Todd Murray.

Since 2009, Todd has been helping Minnesotans combat fraudulent auto sales by used car dealers. His work has returned hundreds of thousands of dollars to his clients’ pockets and has improved the legal protections for used car buyers throughout the state. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

Branded title? No title at all? A guide to common used car title problems.

We frequently hear from used car buyers dealing with a problem with their vehicle’s title. In some cases, the buyer is surprised to learn that their title is branded as “salvage” or “flood.” In other situations, the buyer never gets the title at all. Here’s a quick guide to these unfortunate situations.

I Received My Title, but Found Out That It’s “Branded.”

A branded title has a permanent notation on it that the vehicle has a serious defect. Here's a list of the title brands used by the Minnesota Department of Motor Vehicles:

• Prior Salvage. This is usually used to indicate that the vehicle has previously been declared a total loss by an insurance company, often because of a prior accident.

• Flood. The vehicle has suffered flood or water damage.

• Reconstructed. The vehicle has been altered by the removal or substitution of essential parts

• Rebuilt. The vehicle has sustained damage in excess of 80% of its cash value and the "Prior Salvage" brand doesn't apply

• Lemon Law Vehicle. This usually indicates that the vehicle has been bought back by the manufacturer under the lemon law.

Minnesota law requires that a dealer disclose the title brand if the dealer knows about it. They must disclose it in writing and verbally. If they don’t do this, they’ve likely broken the law.

A related situation is where the previous owner’s title is clean, but your title comes back branded as “salvage.” This occasionally happens because the Minnesota DVS does its own prior accident database search and will brand your title even if the prior title was clean. This creates a grey area, legally speaking, because the title at the time of sale (the prior owner’s title) is clean. This means, probably, that the dealer doesn’t have to disclose anything to you about the vehicle’s title.

I Never Received a Title at All

A particularly awful form of auto fraud is when the dealer sells a vehicle without being able to provide a title. This puts the buyer in a really bad spot. She can't sell the vehicle without the title and can't prove that she owns it if she is stopped by law enforcement of if she needs to get it back after being impounded.

Fortunately, every used vehicle sale by a dealer creates a warranty that the vehicle has a good title. This warranty of title arises by law--so it doesn't have to be in writing--and you don't have to prove that the dealer knew about the title problem. This warranty of title can only be excluded by specific language that gives the buyer a reason to know about the title defect. This means that an "as-is" statement isn’t sufficient to exclude the warranty of title.

In general, the warranty of title is breached if:

• The dealer fails to provide title after the sale. This must be more than just a delay by either the dealer and/or DMV in processing the buyer's new title. Most often, a dealer fails to deliver title to the buyer when the title is being held by one of the dealer's unpaid creditors.

• The vehicle is subject to an undisclosed lien. Most commonly, this is a lien from the prior owner's lender.

• The vehicle is stolen.

As with most warranty claims, the buyer must give the dealer notice of the breach of warranty of title. If the dealer fails to fix the problem after getting notice, the buyer will have legal claims for breach of the warranty of title.

What Are My Legal Rights if I Got a Branded Title or Didn’t Get a Title at All?

In most of these cases, you will have legal claims against the dealer for your damages, which are usually the diminished value of the vehicle. In some cases, you may be entitled to unwind the sale altogether. In most cases, the dealer will have to pay your attorney fees and court costs if your case is successful.

Found out your title is branded? Never got a title at all?
Get a consult with auto fraud attorney Todd Murray.

Since 2009, Todd has been helping Minnesotans combat fraudulent auto sales by used car dealers. His work has returned hundreds of thousands of dollars to his clients’ pockets and has improved the legal protections for used car buyers throughout the state. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

Learned your vehicle is salvage? Everything you need to know

One of the most serious type of auto fraud is the concealment of a vehicle's salvage history. A “salvage” vehicle means one that was declared a total loss by an insurance company, often because of a serious accident or collision. It is believed that millions of salvage vehicles are patched up and sold to unsuspecting consumers each year.

How Does a Dealer Get Away With Selling a Salvage Vehicle?

The only way to profitably sell a salvage vehicle is to conceal its wreck history from the buyer. A dealer can buy a salvage car for less than wholesale price, make cosmetic repairs, and sell the vehicle to an unsuspecting buyer as a clean vehicle at full retail price. For example:

As long as the dealer conceals the wreck history from the buyer, trafficking in salvage vehicles can be a profitable practice for a shady used car dealer.

Why Should I Care if I Bought a Salvage Car?

There are three main reasons.

Most importantly, it’s possible that a salvage vehicle could be unsafe to drive. A serious collision can result in frame or structural problems. Once a car's structure is compromised, it may not be possible to restore its original integrity. This can pose serious safety risks if the vehicle is ever in another accident. The damaged frame will probably not perform as the manufacturer intended it to, which can expose passengers to significant injuries or even death.

Second, even if the vehicle isn’t unsafe, you almost certainly overpaid for it. A vehicle with a salvage history will almost always be worth less than a clean vehicle. The reason is simple: most people won't buy a vehicle with an accident history, and they definitely won't pay clean retail price for it. Depending on the circumstances, a salvage history may diminish a vehicle's value by over fifty percent.

Third, you’ll never be able to trade in a salvage vehicle. One of the first things a dealer does when evaluating a trade-in is pull a CarFax report. If the report shows a salvage history, the dealer is sure to pass on your trade.

I Think My Vehicle is Salvage. How Do I Know For Sure?

Here are a few tips for learning whether your car was previously in an accident:

• Get a vehicle history report from Carfax. These reports have alerts if there’s an accident in the vehicle’s history.

• Request a title history from the Department of Motor Vehicles. Depending on how far the title history goes back, it may reveal a salvage history.

• Get it inspected by a body shop. Tell the body shop that you suspect that the vehicle has been in an accident and that you want them to examine it to confirm. If the inspection reveals a prior accident, ask them whether there is any structural damage or safety concerns. Also ask whether the signs of the accident would have been apparent to a knowledgeable car dealer. And be sure to get an estimate for any recommended repairs.

Selling a Salvage Vehicle Has to Be Illegal, Right?

Not necessarily, at least in Minnesota. Generally, there are four scenarios that can give rise to legal claims under Minnesota law:

• If the vehicle title has a salvage “brand” or stamp and the dealer doesn’t tell you;

• If the vehicle is not roadworthy at the time of sale due to a safety issue.

• If the dealer knows the vehicle has been in an accident and lies to you when you ask about it;

• If the dealer knows that the vehicle has suffered damage in excess of 70% of its cash value and doesn’t tell you;

There is quite a bit of nuance to all of these scenarios and a detailed legal analysis is necessary to determine whether the dealer broke the law in your case.

Just learned you bought a salvage vehicle?
Get a consult with auto fraud attorney Todd Murray.

Since 2009, Todd has been helping Minnesotans combat fraudulent auto sales by used car dealers. His work has returned hundreds of thousands of dollars to his clients’ pockets and has improved the legal protections for used car buyers throughout the state. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

Learned Your Odometer Was Rolled Back? A Complete Guide for Minnesota Car Buyers

Discovering your car’s odometer was rolled back feels like a punch in the gut. You thought you were buying reliability, instead, you’ve been cheated. You’re not alone: according to the National Highway Traffic Safety Administration, more than 450,000 vehicles are sold every year with false odometer readings, costing buyers over $1 billion annually.

If you’ve just learned you’re one of these unlucky buyers, here’s everything you need to know about odometer rollbacks in Minnesota and what you can do about it.

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What Is an Odometer Rollback?

An odometer rollback happens when the mileage reading on a vehicle is altered to make it look like the car has been driven less than it really has. Modern vehicles use computers to track and display mileage and scammers use “mileage correction” tools to plug into the system and change the numbers.

Indeed, a quick search for “odometer rollback tool” returns a bunch of “mileage correction” devices:

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Why Odometer Fraud Matters

Odometer rollbacks aren’t just a technicality. They create real harm:

• Financial Loss: You overpaid, often by thousands of dollars.

• Resale Problems: You’ll never be able to trade the vehicle in. Dealers and private buyers check Carfax, and once an odometer discrepancy is noted, resale value collapses.

• Safety Risks: Higher-mileage cars have more wear and tear — tires, brakes, suspension, airbags — making them less safe than you thought.

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How to Spot an Odometer Rollback

Sometimes you can catch fraud before or after buying. Here’s what to check:

• Vehicle history report (Carfax, AutoCheck): Look for mileage discrepancies.

• Maintenance records: Oil changes and service receipts show mileage at the time. Check glove boxes, seats, and door stickers for past records.

• Title history: Request a full history from the Minnesota DMV. Older titles may reveal inconsistencies.

• Physical wear: A car with “low mileage” shouldn’t have worn pedals, sagging seats, or faded steering wheels.

• Mechanic inspection: A trusted mechanic can spot if the car looks far more “used” than the odometer suggests.

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Minnesota and Federal Odometer Fraud Laws

Both federal and state law make odometer tampering illegal.

• Federal Law (49 U.S.C. §32701): Prohibits tampering with odometers and requires truthful mileage disclosures.

• Minnesota Law (Minn. Stat. §325E.14): Makes odometer fraud a crime and provides remedies for victims.

Penalties include:

• Civil damages: At least $10,000 or three times your actual damages (whichever is greater).

• Attorney’s fees and costs: If you win, the dealer must pay your lawyer and court costs.

• Criminal penalties: Jail time and fines for violators.

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What Are My Legal Rights?

If you’ve been a victim of odometer fraud in Minnesota or Western Wisconsin, you can take action:

• Sue the dealer who sold the vehicle with a false odometer reading.

• Recover damages: Refunds, compensation for lost value, and additional damages as provided by law.

• Pay nothing upfront: At Friedman Murray, we handle these cases on contingency, meaning we only get paid if you win.

• Important Note: We only take cases against licensed dealers. We generally cannot help with private-party transactions. Documentation (Carfax, repair records, title history) is required to build your case.

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FAQ: Odometer Rollbacks in Minnesota

How common is odometer fraud in Minnesota? Very. The NHTSA estimates over 450,000 cars are sold with false readings each year. Minnesota, with its heavy used-car market, is no exception.

Can I sue if the dealer didn’t personally roll it back? Yes. The law prohibits sellers from knowingly making false mileage disclosures — even if they weren’t the ones who altered it.

What if I bought from a private seller? While you may have legal claims if the private seller broke the law, our firm only handles cases against licensed dealers.

Just learned your vehicle’s odometer was rolled back?
Get a free consult with auto fraud attorney Todd Murray.

Since 2009, Todd has been helping Minnesotans combat fraudulent auto sales by used car dealers. His work has returned hundreds of thousands of dollars to his clients’ pockets and has improved the legal protections for used car buyers throughout the state. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.