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I've had friends buy flood damaged cars and they rusted from the inside out even with the rust protection on modern cars. The water and silt got into into panel joints and hidden cavities and cancerous rust started after a couple of years.
I like jack Didley's advice. Drive it like you stole if for a couple of years and then be prepared to walk away with no cash. If you can live with that, then it might be ok deal.
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