People in the hunt for a secondhand car are being warned to watch out for flood-damaged autos after it emerged that write-offs have been recycled in the pre-owned market.

Cloudbursts and huge downpours have hit Beijing several times this month, flooding roads in low-lying parts of the city and seriously damaging many cars that ran into deep water.

The flooding left behind cars that were soaked inside and out and that had serious hidden problems in their engines and other parts.

On the secondhand car market in Beijing, however, some unscrupulous agents have purchased those flood-damaged cars for bargain-basement prices and have been selling refurbished vehicles for much more, earning handsome profits from the deals. The activity is, however, fraudulent and punishable with a fine. METRO posed as a seller and called several secondhand car agents and asked whether they would purchase flood-damaged cars. All said they would.

When METRO offered to sell a fictional two-year-old BMW 320i Luxury that had been soaked in the flood a few days before, the agents said they would purchase the car. Most wanted to know if the engine had been started when the car stood in water, something that would severely damage it. For the flood-damaged 2008 BMW, the agents offered between 150,000 and 250,000.

A new BMW 320i Luxury sedan sells for 375,000 yuan in China while a secondhand one, which had been used for one to two years would sell for 250,000 to 300,000 yuan on the market.

An informant who has been a salesperson for secondhand cars for many years, said agents usually refurbish flood-damaged cars in salvage shops and sell them as normal secondhand cars. A flood-damaged luxurious car may offer a profit of between 50,000 and 100,000 yuan, the source said. Ordinarily, agents only earn between 20,000 and 30,000 yuan for the sale of a regular vehicle.

The dealers who sell flood-damaged cars usually prefer luxurious cars because the profits are much higher.

However, while the refurbished cars might be made to look acceptable in the workshop, the hidden damage they may have is far more serious.

A car engineer cautioned that refurbished flood-damaged cars pose many risks. Serious problems include the possibility of engines stopping working or airbags failing to inflate.

Guo, a manager at the Beijing Used Vehicle Fair in Huaxiang, Fengtai district, told METRO there are not many specific laws or governmental regulations that deal with flood-damaged cars.

Selling such vehicles without making the buyer aware of the car's history, however, can be seen as retail fraud and an infringement on consumers' rights.

Guo insisted there had been no incidents of such vehicles being sold at his workplace.

"If a consumer complains to us about such a thing happening, the dealer will be fined twice the price of the car."