SERVICE NOVA SCOTIA/MUNICIPAL RELATIONS--Nova Scotians Advised to be Aware of Possible Flood-Damaged Vehicles

---------------------------------------------------------------Nova Scotians are advised to do their homework before buying vehicles from the United States, to avoid any that may have been damaged by hurricane Sandy.

The Registry of Motor Vehicles is warning people to be aware that both new and used vehicles damaged by hurricane Sandy flooding could be for sale.

Consumers considering a U.S. vehicle purchase are advised to research and test the vehicle thoroughly before a purchase, even if it is from a licensed dealer.

Once purchased, a flood-damaged vehicle cannot be registered through the Registry of Motor Vehicles, meaning it cannot be legally licensed and driven in the province.

"Nova Scotians considering the purchase of a vehicle from the States should be aware that flood-damaged vehicles may be for sale without any indication that they were damaged by hurricane Sandy," said John MacDonell, Minister of Service Nova Scotia and Municipal Relations. "As always, buyers should be aware and do extensive research when considering a foreign vehicle purchase in the weeks and months following any natural disaster."

Nova Scotians considering a vehicle purchase from the United States are advised to research the car's history and to have the vehicle thoroughly inspected by a certified mechanic before committing to the purchase. The risk is also reduced if they purchase from a reputable licensed dealer, rather than through private sales or the Internet.

Flood-damaged vehicles can be unsafe as their entire operating and safety systems may have been compromised by water damage. In addition, mould, toxins, and sewage may be present in a vehicle that has been exposed to flood waters.

"Disaster fallout includes attempts by fraudsters to clean up and resell flood-damaged vehicles," said Amanda Dean, director, External and Government Relations, Atlantic office of the Insurance Bureau of Canada.

"Consumers should always exercise caution with foreign vehicle purchases, but more so after a natural disaster. "If a deal seems too good to be true, or suspicious, report it through our tips reporting program at 1-877-IBC-TIPS or through www.ibc.ca."

The U.S. National Insurance Crime Bureau states on its website, http://nicb.org/newsroom/news-releases/sandy-damaged-vehicles, that as of Nov. 26, there were 230,000 vehicles, including new vehicles at dealerships, that were damaged by hurricane Sandy, mostly in New York and New Jersey. Other states reporting damaged vehicles included Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, and the District of Columbia.