Is It A Good Deal ?

I’ve been in the car business a long time and I can tell you that is definitely a better vehicle history report service than Carfax reports. is owned by Experian, which you may know as the credit reporting agency.

If you think Carfax offers an accurate vehicle history report, think again. The $20 you spend to buy a Carfax vehicle history report, which is supposed to show title problems, flood damage, odometer issues and many other problems, might be a big waste of money. Thousands of people around the country have bought cars with clean Carfax reports and have found out accidents didn’t show up in the carfax report, odometer was rolled back or the car has a previous salvage title in another state. Many, many people find out things that would have steered them away from their purchase, but now that they bought the car it’s too late.

One man went to trade in his 2003 Jeep Cherokee and when the dealer pulled up the Carfax on his car it showed a severe accident with a possible salvage history. Truth of the matter was he was involved in a minor accident, so minor he was able to drive it to the body shop. No major damage or anything… but Carfax reported inaccurate information and the dealer ended up paying him $5000 less because of this Carfax report. He even tried fighting it, he sent a thirty page report from the body shop with pictures, names and numbers of everybody who worked on the car and the insurance adjustor information who all declared the Carfax had reported the accident incorrectly, yet Carfax refused to change the information.

Carfax claims its “the most trusted provider of vehicle history information”. There is one place you’d figure Carfax would get most of its data from, insurance companies. Believe it or not, but Carfax doesn’t receive any records about wrecked vehicles from any insurance companies.

You might say, what about their Buyback Guarantee, which is supposed to protect you in case the Carfax shows inaccurate information. Well truth of the matter is Carfax since starting the program has only bought back roughly 9 cars ! Just two years ago a class action lawsuit was filed claiming the company doesn’t have access to police accident data in 23 states. Remember there are 50 states That means in about half the states in the US, Carfax has no police accident data. Two of the biggest states motor vehicle departments, California and Texas, verified that they do not provide unique VIN number information to vendors.

As a car dealer myself I’ll say this… personally I think both Carfax and Autocheck suck. A good percentage of accidents or major problems don’t even show up on Carfax reports. Nothing beats a good inspection and if you need some help bring a mechanic or knowledgeable friend. If I had to pick between Carfax and Autocheck, I’d say Autocheck for one reason and one reason only, Manheim Auctions, the largest network of automotive auctions in the world, which is where almost every used car passes through at one point in their life only reports more so to Autocheck then Carfax.

This poor family bought a car they found on Craigslist.com, they did what most people do and ran a Carfax vehicle history report and found a clean report. They then purchased the car and four months later the police were at their door to impound the car. So remember, just because you get a clean Carfax or Autocheck report it doesn’t mean the car isn’t stolen.

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Because of the rising strength in the Canadian Dollar and the decline of the U.S. Dollar many Canadians are coming across the border to buy cars or many U.S. cars are getting shipped and sold in Canada. One major problem arises from all that though and that is some of the cars being taken to Canada are deemed lemon cars in the U.S. but not in Canada. To help identify vehicles bought back by auto manufacturers, used car shoppers can check for lemon brands using the free Carfax Lemon Check at www.carfax.com.

Tampa, Florida — If you’re in the market for a used car there are many precautions you need to take.

Jayson Rosenberg says he learned the hard way. He bought a Jaguar at Jaguar of Tampa. He says he thought he got a good deal, until someone looked under the hood.

“They thought it was a rebuilt car, when I was getting my oiled changed.” Jayson says.

Jayson said he was unhappy with the car he bought so he returned to Jaguar of Tampa to try and get a different car. And he says when he asked about the damage he was told it was never in an accident. He says they told him they painted the front of the car to get the love bug damage off.

That’s when Jayson called 10 News and we wanted to find out what, if anything, was wrong with the car.

“There is existing damage on this vehicle, potential problems for the owner.” says the manager of Caladesi auto shop, a collision specialists certified by triple A.

We asked them to go through the car inch by inch.

They told us, “there definately was an accident, multiple panels have been affected, something has been impacted into the hood. Everyone of these bolts has been tooled, meaning this fender and hood have been off.”

We asked Jaguar of Tampa about what Caladesi discovered. Rob Elder, the owner of the dealership told me on the phone he had no knowledge of any major damage from an accident.

However, 10 News has uncovered police reports and repair invoices showing the Jaguar in one accident in July 2003 in Bradenton where damage estimate was $2000.

There was another accident in California. This one more serious — 15 to 20 thousand dollars worth of damage.

Jaguar of Tampa gave this car a 140 point inspection and certified the vehicle was in good working condition.

According to state prosecutors, “It is not a crime to not disclose previous damage to a car,” but buyers who have been sold damaged vehicles can go through civil court to seek restitution.

Again, Mr. Elder denied knowing about the damage. He also denied our requests for an on camera interview, but he did send us a written response saying when Jayson brought the car back to the dealer “There was disagreement about the condition of the car.” He also said his dealership is consistently recognized for its quality customer service.

Carfax also gave this vehicle a clean title, meaning no accidents. But that’s no guarantee. In fact Carfax representatives say “There is no way for us to know about every accident that may have occurred in a cars past.”

Meanwhile Jayson says he wants everyone to learn from his experience. He says, “One thing I’d like to see happen is for people to be aware and get it checked out.”

Source:Reginald Roundtree, Tampa Bay’s 10News

Faulty Air Bag Replacements Put Consumer Lives At Risk

CENTREVILLE, Va.–(BUSINESS WIRE)–Industry experts estimate that as many as one out of 25 previously damaged vehicles may have non-functional air bags. Con men purposely replace deployed air bags with anything from packing peanuts to stolen units. This growing scam is threatening the lives of used car buyers everywhere. To help consumers protect themselves, Carfax now makes the air bag deployment information in its database available for free.

“No question, air bags are a lifesaver,” said Larry Gamache, communications director at Carfax. “To best protect yourself, follow these two important steps: Use the free Carfax air bag check and always have your mechanic test the air bag system to ensure it’s functioning properly before you buy. Do not assume your car’s air bags will deploy when you need them, because most victims of this scam may never know until it’s too late.”

According to the National Highway Transportation Safety Administration, nearly 20,000 lives have been saved by air bags deploying in an accident. As the height of used car buying season quickly approaches, consumers need to be on the lookout for scams like air bag fraud that can threaten their safety.

“While we don’t know about every air bag deployment, we want consumers to have access to what we do know,” added Gamache. “We also encourage all of our customers who have information about a previous air bag deployment not currently in our database to tell us so we can further help consumers steer clear of this scam.”

Consumers can log on to www.carfax.com/airbag to access the free Carfax air bag check and can report air bag deployment information using the “Tell Us What You Know” link on all consumer-purchased Carfax Vehicle History Reports.

An auto safety advocacy group is objecting to the proposed settlement of a class-action lawsuit against Carfax Inc. that claimed the company’s title searches for used cars were misleading.

Public Citizen argues the settlement doesn’t go far enough to reimburse customers who got faulty searches and that a lot of people won’t benefit at all from the deal because of its time limits.

Virginia-based Carfax Inc., a unit of Southfield, Mich.-based R.L. Polk & Co., is a privately held auto information and marketing company that conducts millions of title searches yearly using a vehicle’s 17-character Vehicle Identification Number.Customers pay $25 for the searches before they buy a used car so they can find out a vehicle’s history, including previous serious accidents or major insurance claims. The information can provide evidence of past severe damage that could signal lingering mechanical and other problems.

Some Carfax customers sued the company in 2004 after discovering Carfax wasn’t searching the complete police accident records from 22 states and the District of Columbia. The lawsuit claimed Carfax started misleading customers in 1998, after the company lost access to accident records from all 50 states through the National Crime Insurance Bureau database. Without that data, Carfax reports weren’t showing some serious crashes, the lawsuit said.

Under the settlement tentatively approved in October by Judge Andrew D. Logan of Trumbull County Common Pleas Court in Warren, Ohio, people who used Carfax before Oct. 27, 2006, would get $20 off an inspection of their vehicle; a voucher for two free Carfax Vehicle History Reports within one year of final approval of the settlement; one free report within two years of the settlement; and a voucher for 50 percent off car reports within three years of the settlement.

More than 10 million consumers are affected, said Carfax spokesman Larry Gamache, who said notice of the settlement has been e-mailed to 1.8 million people who used the service in the past year.

Gamache said the company takes Public Citizen’s objections seriously and will review them. He acknowledged that the database doesn’t contain every accident.

Among Public Citizen’s objections to the settlement:

The time limits on benefits. For people not planning to use Carfax services within three years of the settlement’s approval, the deal “would be essentially worthless,” said Deepak Gupta, a lawyer for Public Citizen.

Inadequate compensation. Affected Carfax customers would get free or discounted title searches — depending on when they used them — or could get $20 off a vehicle inspection. But Public Citizen notes inspections cost about $100.

No letters sent to former customers detailing the settlement. Instead, notice of the settlement appeared once in USA Today and once in Investor’s Business Daily. Also, Carfax sent e-mails only to customers from the previous year, and the e-mail sender was shown as settlement@tgcgi.com” — not Carfax — so some people may have assumed it was junk mail.

A court hearing on Public Citizens’ objections and final approval of the settlement is set for May 11. For information and a claim form, go to the website westcarsettlement.com.

Source: Boston Globe

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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Last month under West Vs. Carfax, Carfax reached a settlement in court on their pending lawsuit. Under the settlement, people who purchased a Carfax vehicle history report before October 27th 2006 are eligible for free or discounted Carfax reports. Another option is a 20% discount on a vehicle inspection for buyers who used a Carfax report on that vehicle in the past. If you don’t opt into the settlement by March 13th you lose your right to sue Carfax if you are injured because of defects in a previously damaged car that a CarFax report claimed was clean.

Tim Blake, a Miami attorney specializing in auto fraud stated, “I’ve found CarFaxes to be accurate less than 60 percent of the time.”

More info: www.westcarsettlement.com