Encar offers full refund on flood-damaged used cars

Ahead of the monsoon season, used-car trading platform Encar has launched a liability refund program to ease consumer concerns about flood-damaged vehicles. A key feature is that it extends protection beyond the point of purchase, recognizing that flood damage is often impossible to detect from a vehicle's exterior alone.

Encar announced Friday that it is running a "flood vehicle 100% liability refund program" for customers who buy cars through its Encar Midgo service.

Under the program, customers who purchase a vehicle through Encar Midgo and discover within 90 days of taking delivery that the car has a flood history not disclosed at the time of sale are entitled to a full refund. The refund covers not only the vehicle price but also transfer fees, service charges and delivery costs.

Flood-damaged vehicles are among the biggest concerns for used-car buyers. They are difficult to distinguish from ordinary cars by appearance alone, and when no insurance claim was ever filed, even a history check may not reveal the damage. Concerns about flood vehicles entering the used-car market tend to spike after the monsoon season and heavy summer rains.

Vehicle flooding remains a major summer issue. According to the Financial Supervisory Service, an average of 7,035 flood-damage cases involving vehicles were reported annually over the past five years, with 65 percent — or 4,589 cases — concentrated in July and August. Average flood-related vehicle damage during the monsoon season reached 44.3 billion won ($29.3 million), more than double the level seen at other times of year.

Encar has operated the flood vehicle liability refund program for Encar Midgo purchases since 2024. The initiative is designed to go beyond simply selling cars, extending coverage to flood-history issues that may surface after purchase in order to build greater trust in transactions.

Encar Midgo is a used-car buying service through which Encar directly inspects and vets vehicles selected from general dealer listings. The service also offers seven-day-a-week delivery, including weekends, and a seven-day return policy that allows customers to request a refund within seven days of taking delivery.

However, consumers are also advised to check vehicle histories through multiple channels to avoid purchasing a flood-damaged car. Entering a license plate number on the Insurance Development Institute's Carhistory service will show any flood records on file. For vehicles with no insurance claim history, where such checks have limitations, buyers are encouraged to also use Car365 to review maintenance records and major parts replacement history.

A physical inspection is equally important. Buyers should look for signs of ECU or wiring replacement inside the engine compartment, corrosion or mud marks around the fuse box, and staining on the trunk floor. Pulling the seat belt all the way out to check for mold, mud or other residue is also recommended.

An unpleasant odor when the air conditioning is turned on can also indicate flood damage. Because some sellers replace seat belts to conceal flood history, buyers should also check whether the manufacturing date on the lower part of the seat belt is significantly out of step with the vehicle's model year.

"What matters in buying a used car is not just the moment of choosing a vehicle, but having peace of mind after the purchase as well," an Encar official said. "Through Encar Midgo, we provide vehicles that we have directly diagnosed and inspected, and we operate the flood vehicle liability refund program to strengthen a trust-based buying experience."

Meanwhile, Encar said its Encar Midgo service surpassed 60,000 registered vehicles as of Monday, reflecting the platform's rapidly growing market presence.