Battle Lines Are Drawn in Mississippi over Whether Cars Destroyed
in Floods Can Have a New Life With "Branded Title"
By Mary Welch
Battle lines are drawn in Mississippi over whether cars destroyed in floods can have a new life with "branded title" or be permanently retired with a certificate of destruction. Two bills in front of the Mississippi legislature would allow for a vehicle with a "certificate of destruction" from another state to get a branded title in the state. Currently the Department of Revenue can't give those flooded damaged cars any sort of title thus preventing them from going back on the roads. Instead, these cars are sold for parts only.
John Mosley, owner of Clinton Body Shop in Clinton, Miss., is against putting these cars on the roads again. Twenty years ago, a flood damaged car was easy to fix. Let it dry out, put in new carpet and it was good to go, he says. But with all the computers and electronics, water damage is harder to discover and more deadly.
"You can have electronic circuitry right under your feet and if that gets damaged, who knows what will happen?" he asks. "It might cause the air bags to ignite or seats lock or the brakes not to work. And, especially in cars that were in floods, the corrosion may not show up until six months. There's a real reason why these cars are declared total losses. Most states declare them total losses and issue the destruction title and never let them get back on the road. Except Mississippi."
State Senator Charles Younger introduced the bill (Senate Bill 2229) that "would authorize a vehicle with a Certificate of Destruction issued by another state for a water damaged vehicle that has been declared a total loss to be issued with a branded title if the vehicle has been restored in this state to its operation condition that existed prior to the event that caused the certificate of destruction to be issued."
It was voted out of committee and he is presenting it to the full Senate. He doesn't believe there is any danger to the car buyer or the general public. "In Mississippi you can go online and look at these vehicles that have been in floods and wrecks. Some of these were in floods and got certification of destruction from Louisiana. Some didn't even have water in them but the insurance people paid them all off. In the pictures you can see a yellow mark where the water was."
With the yellow line, potential buyers can see where water may have seeped in and potentially caused damage — visual or hidden— and then make their decision, he says. "There is nothing wrong with some of these cars and they get a brand new title — a branded title that stays with the car for the rest of its life — and someone gets a decent cheap vehicle and Mississippi gets revenue from the tax and title," Younger says.
Younger points to the "parts people who are trying to do away with this bill. They want these cars to strip them down and not let them be sold as a used vehicle with a clean title. I'm trying to let the consumer know what they're buying."
Mosley says the insurance industry, "which has a big presence in our legislature" is donating to different candidates to support the bill. "Mississippi is one of the lower income states and has one of the lowest educated people. What really aggravates me is that you're going to have some smooth-talking used car salesmen who will say and do what they need to so that a potential buyer doesn't know the real story. They'll clean it up. These people won't know what they're buying and when they break down the insurance industry won't do anything because it's a pre-existing thing. And, then I'm driving on the road with my family and one of these cars malfunctions and my life's in danger. It's harmful to consumers from a safety and financial standpoint."
Mississippi Representative Jeffrey Smith introduced a similar bill in the House. He did not return calls for an interview.
Younger says that he is confident his bill will pass the Senate and hopes the House bill also will pass. "Then it's up to the Speaker of the House to see which bill goes to the governor." He says right now it has a "50-50" chance of reaching the governor for his signature. "He'll sign it if he loves the people of Mississippi," he says.n