Are Carfax Reports A Waste of Money & Time?
posted in Carfax, General |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”