Is It A Good Deal ?

Source: Richmond Times-Dispatch

It was love at first sight when Dr. Roxanne Jeffries spotted a Jaguar convertible at an upscale dealership. But wanting to be a smart consumer, she kept her head and asked the salesman: “Can you run a CarFax for me?”

Jeffries was delighted when the CarFax vehicle history he handed over minutes later indicated there had been no reports of accidents, flood or frame damage involving the car.

Three weeks later, the Jag overheated and more problems followed. Jeffries’ husband did some research and discovered the 2001 Jaguar had been in a head-on crash less than a year before Jeffries bought it. With $16,000 estimated in damage, the dealership that then owned the car filed for insurance and sold the Jaguar for salvage, according to Raymond Ingalsbe, the couple’s attorney.

Millions of used-car buyers every year turn to CarFax, a source for used car history research based in Fairfax, Va. More than 29,000 dealers have CarFax accounts and can instantly produce vehicle history printouts.

But auto-fraud attorneys and car-safety advocates say the reports are not foolproof, and even CarFax officials acknowledge they are not always complete. CarFax has limited access to insurance and accident reports, and no way to verify the accuracy of its information, they say.

In Jeffries’ case, the police officer investigating the Jaguar’s crash wrote down the wrong vehicle identification number, so CarFax didn’t pick it up.

“I’ve found CarFaxes to be accurate less than 60 percent of the time,” said Tim Blake, a Miami attorney specializing in auto fraud. That’s why advocates urge consumers have a mechanic or a collision specialist inspect a used car before buying.

Questions about CarFax reports are gaining renewed scrutiny as a result of a nationwide class-action lawsuit that charged the reports were not as complete as the company led its customers to believe. CarFax this year reached a settlement of the lawsuit. Under the settlement terms, millions of people who purchased a CarFax vehicle history report before Oct. 27, 2006, are eligible.

Those interested must file a claim form, available at www.westcarsettlement.com, by May 27.

But instead of receiving cash from CarFax, consumers who file claims will get free or discounted CarFax reports — the same documents the consumers’ attorneys said were incomplete. The other option is a 20 percent discount on an inspection, expected to run about $100, of any vehicle that buyers researched using CarFax.

If consumers don’t opt out of the settlement in writing by March 13, they lose the right to sue CarFax if they are injured because of defects in a previously damaged car that CarFax claimed was clean.

Jeffries already has filed suit against Palm Beach Motor Cars, which sold her the Jaguar. The dealership declined to comment on the case.

CarFax spokesman Larry Gamache said the company never implied that a report was the only tool a car buyer needs. “We’ve always encouraged people to get an inspection by a mechanic”

Source: ABC News

Services such as CARFAX and AutoCheck can be good tools for savvy consumers to use before buying a used car. But CARFAX seems to have backfired for one Bay Area woman.

CarFax is a potentially good information source. The company provides the vehicle history of any used car you might buy, but mistakes are made. As one Bay Area woman found out, information can be dangerous if you know only half the story.

Gina Huggins of Livermore bought a 2000 model Honda Civic back in 2004. Before she bought it she purchased a CarFax report indicating the car had not been in an accident. Now fast forward two years later to when Gina put the car up for sale.

Gina Huggins: “A potential buyer pulled the new CarFax report. There was an accident indicator on the report that actually was dated a year-and-a-half prior to the time that I bought the car.”

Sure enough, Gina called up the CarFax report on her car, and there it was, an accident indicator. The accident happened 18 months before Gina bought the car.

In an e-mail to Gina, CarFax told her it “continuously adds new data sources to enhance records in our data base… any given report may change on a day to day basis.”

That’s good to know if you’re buying the car, but for Gina, it meant the value of her car had suddenly dropped. She says that was only half her problem.

Gina Huggins: “Well, I’ve gotten some people that have been interested and the minute they find out the accident indicator is on there they say they’re not interested.”

Gina asked CarFax for more information about the car’s history, that way she could pass on to potential buyers just what happened. CarFax was only able to confirm that the car had been taken to an auto body shop and that the damage was to the front end.

She then called 7 On Your Side for help. Using public records, we tracked down the previous owner who had recently moved from Dublin to Oregon. She told us the car had been damaged from flying debris on the freeway. The car was never in an accident.

With that new information, Gina tells us she was able to sell the car last month.

The bottom line — you need to know that CarFax reports don’t always have the latest information. They can be updated at any time, sometimes affecting your bottom line.

CarFax recently settled a class action suit.
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