FARMINGTON, Pa. -

UPDATED: Dealer Jim Smail was meeting with his fellow Pennsylvania Automotive Association board members at the Nemacolin Woodlands Resort 70 miles outside Pittsburgh on Thursday when several directors had to leave immediately.

As these dealers were finding out, the wrath of the recent storms — which some project may have flood-damaged tens of thousands of vehicles — is not over.

Pennsylvania’s capital of Harrisburg and the Northeastern parts of the state began flooding, Smail said, leading PAA board members to scurry away from the meeting and across the state to make sure their dealerships and homes were safe.

Not to mention, PAA’s headquarters are in Harrisburg and were being threatened Thursday afternoon, said Smail, who is the president of Smail Auto Group in Greensburg, Pa. He is also the chairman of the American International Automobile Dealers Association in addition to serving on the board of PAA.

“It’s just been a real mess,” Smail told Auto Remarketing, saying that as of Thursday afternoon, he had not yet heard of any damage done.

At Harrisburg Auto Auction, the flooding began on the auction’s sale day. Harrisburg AA still had the sale, but the crowd was only half the normal size and the sale rate was just 50 percent, said auction owner Lynn Weaver.

He said his facility and vehicles managed to escape any damage, but many dealers in town were not so fortunate.

Dealerships in the area had cars literally float away from their lots, Weaver told Auto Remarketing on Friday. He said the flooding was the fourth-worst in Harrisburg’s history.

"Unbelievable," Weaver remarked. "Nothing like I’ve ever seen."

A report late Thursday afternoon indicated that  Pennsylvania  and New York had to evacuate a combined 120,000 people because of the flooding. Three have already died in Pennsylvannia due to the flooding, the governor confirmed.

In fact, Gov. Tom Corbett declared the emergency level in Pennsylvania to be the most severe since Sept. 11, 2011 when terrorists attacked the U.S.

"Almost every town along the Susquehanna River has experienced flooding, including Towanda, Danville, Bloomsburg, Wilkes-Barre and Sunbury,” Corbett said Thursday afternoon.

"In Hershey, the Swatara Creek has risen four times beyond its flood level,” Corbett said. "Some flood gauges cannot give us reliable data because they are now so far underwater," he added. "We face a public health emergency because sewage treatment plants are underwater and no longer working. Flood water is toxic and polluted. If you don’t have to be in it, keep out.”

Hundreds of roads across the state have been closed because of flooding, mudslides and rockslides, as well as stranding motorists and residents. Specific information about major state road closures is available by calling 511 or by www.511pa.com.

The flood waters were not expected to crest until Saturday morning in Harrisburg, Weaver said, meaning it will likely be the middle of next week or the following week before exact vehicle damage is known.

"We have not seen the end of this yet," Weaver noted.

Reports indicate that the scope of the river’s flooding extends all the way into Maryland, as well, in addition to Pennsylvania and New York.

This flooding will only add to the already significant damage brought on by Hurricane Irene and Tropical Storm Lee, which includes damaged dealerships and vehicles. When vehicles are flooded, unscrupulous individuals may try to take a title to another state and get it washed. Each state tends to brand vehicles differently. This can be a big challenge for the used-car industry that must keep on the lookout for such units.

Louisiana alone saw 10 inches of rain after Irene, said Edmunds.com.

“Once owners of damaged cars settle up with their insurance companies, vehicles are sometimes refurbished and resold, usually to an unsuspecting buyer in a state unaffected by the disaster,” stated Ron Montoya, consumer advice associate with Edmunds. “Electrical and mechanical problems can then surface long after the seller is gone, leaving the new owner with an unreliable car and no recourse against the seller.”

So how many cars were actually damaged?

Mike Linn, of the National Independent Automobile Dealers Association, said at this point, it’s unclear — and too early to tell — as to how much vehicle damage his members saw.

"And, it hasn’t totally played out yet," he said.

Frank Scafidi, director of public affairs for the National Insurance Crime Bureau, said that it will take some time to figure out exactly how many vehicles were flood-damaged during these storms. Chris Basso, of Carfax, echoed that same sentiment, but estimated that the damage could be widespread.

“I imagine it’s easily going to be in the tens of thousands (of flooded vehicles),” Basso said. “If you look at the coverage and the area that it hit, it definitely hit some highly populated areas.”

That said, it likely won’t come anywhere close to the damage wrought by Hurricane Katrina when it hit the Gulf Coast in 2005.

In fact, in the aftermath of that storm, NICB rolled out its VINCheck product, which lets users know if a vehicle is a reported stolen and unrecovered or if a NICB member has reported the unit as salvage.

Scafidi said that at any one time in the aftermath of Katrina, the number of flooded vehicles in VINCheck’s database base was more than 300,000 units.

Joshua Steffan, director of AutoCheck for Experian Automotive, estimated that Hurricanes Katrina and Rita damaged close to 500,000 vehicles combined.

Basso indicated that Hurricanes Katrina, Rita and Wilma combined damaged 600,000 vehicles. These storms all pounded the U.S. in 2005, but the impacts are still being felt in the car market today.

Apparently, vehicles damaged by these storms are still being sold as whole cars and their parts are being sold as well.

“We’re still seeing reports of those cars coming out,” Basso noted. “Even six years later, people are still feeling the effects of Katrina cars.”

While it’s not likely the most recent storms will have that kind of an impact, Scafidi stressed that “it only takes one to cause a problem.”

Some of the biggest problem areas are likely to be states where they don’t have as much experience dealing with hurricanes, said Edie Hirtenstein, director of data services for MobileTrac, which provides the instaVIN vehicle history reports.

Hirtenstein gave the example of Northeastern states, which don’t have the same experience preparing for the potential vehicle impact from massive storms that states like North Carolina might.

"That’s really where the impact (car-wise) is going to be felt the most," Hirtenstein said of Northeastern states.

Furthermore, the industry cannot discount storm damage outside of flooding. Debris and wind damage can also be problematic to vehicles.

"Storm damage is really an entire range of problems that consumers need to be aware of,"  she stressed.

In light of what could be massive problems, the Automotive Recyclers Association is calling on Congress to take a hard look at the National Motor Vehicle Title System, which is an electronic system designed to offer consumers a way to figure out a vehicle’s condition and history, including whether it has been flood-damaged.

ARA is imploring that NMVTIS “be fully implemented and the underlying statute enforced."

“After Hurricane Katrina, the Department of Justice reported that truckloads of flooded vehicles were taken out of Louisiana to other states where they were dried out, cleaned, and sold to unsuspecting consumers in other states,” explained Michael Wilson, the association’s chief executive officer. “NMVTIS must be fully implemented and utilized to prevent this from happening again.”

ARA stressed that all states must be completely committed to NMVTIS enforcement and the parties required to report to NMVTI must be “held accountable.”

”Regrettably, DOJ has limited resources to do this. Congress should intercede and permit individual state enforcement agencies to work more closely with DOJ to identify and implement efficient methods to increase participation,” Wilson added. “Only with sufficient resources can DOJ and the appropriate state law enforcement colleagues target all businesses/individuals whom are operating under the radar and fulfill their obligations under the statute.”

One resource dealers and consumers can turn to for finding NMVTIS information is through instaVIN, Hirtenstein said. The site includes the entire NMVTIS database plus third-party information. For consumers the reports are $6.99, which is the starting price for dealers to obtain reports, as well.

According to www.vehiclehistory.gov:

—Thirty-one states are currently participating fully in the NMVTIS program (provide data into system and seeking NMVTIS information before giving new title).
—Eight states are only providing data to NMVTIS.
—11 states (including Washington, D.C.) are "in development."
—Illinois is not participating.

In the meantime, how can dealers and consumers spot vehicles that are flooded but have not been disclosed as such? Scafidi advises they look in some of the hidden spots for water, like the spare tire well. Also, he urges buyers to take a mechanic with them to look at a car before purchasing.

Basso urged people to "be aware that these cars are going to make their way back into the market," indicating that it may be before the end of the year, if not sooner.

He also stressed that "there are thousands of dealers around the country that are using Carfax to help identify vehicles that are damaged by floods. Flood damage is a serious concern and many dealers are taking the necessary steps to either avoid putting them on their lot or disclosing that they were flooded to potential buyers."

Transparency is vital, he noted.

Chiming in, Steffan noted: “Dealers should be vigilant about the vehicles they bring onto their lot. People are motivated to move these types of vehicles even outside their original damage area. Experian Automotive recommends that dealers get an AutoCheck vehicle history report before making a purchase, but also following that up with a thorough vehicle inspection.

“Consumers and dealers alike should be acutely aware of flood-damaged vehicles being out there, and possibly title washed. This underscores the importance of getting and AutoCheck vehicle history report, because even if the vehicle was rebranded as clean in a different state, it will still be on the AutoCheck report,” he continued.

Steffan went on to list steps that dealers and consumers should take, as follows:

• Check under the floorboard carpet for water residue or stain marks from evaporated water not related to air-conditioning pan leaks.
• Look for rust on the inside of the car and under interior carpeting and visually inspect all interior upholstery and door panels for any evidence of fading.
• Check under the dashboard for dried mud and residue, and note any evidence of mold or a musty odor in the upholstery, carpet or trunk.
• Check for rust on screws in the console or other areas where the water would normally not reach unless submerged.
• Check for mud or grit in alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays.
• Complete a detailed inspection of the electrical wiring system, looking for rusted components, water residue or suspicious corrosion.
• Inspect the undercarriage of other components for evidence of rust and flaking metal that would not normally be associated with late model vehicles.

The National Automobile Dealers Association also provided a list of 10 ways to identify flood-damaged cars, which can be found here.

“The thing that’s always most telling is your nose. If something doesn’t smell right, ask the question,” said NADA spokesperson Bailey Wood.

NADA’s National Automobile Dealers Charitable Foundation can also be a good resource for dealerships. Its Emergency Relief Fund does not pay for things like damaged dealer facilities or vehicles, but it does aid employees who have been impacted by natural disasters.

“The NADCF Emergency Relief Fund offers emergency assistance to dealership employees who have been affected by unforeseen emergencies and natural disasters, such as hurricanes, tornadoes, fires, etc. Established in 1992, over $4.1 million has been distributed to more than 6,500 dealership employees in need,” the organization said on its website.

The fund doled out more than $3.3 million in aid for dealership employees when the Katrina and Rita hit the Gulf Coast. It has not yet been contacted in the aftermath of the latest storms.

Dealers in need of assistance can contact Naxhieli Acosta at nacosta@nada.org.

And if the flooding in Pennsylvania is any indication, the industry might not have seen the last of the damage. Hurricane season is not yet over.