On the front of a Carfax brochure is the picture of a happy customer holding the keys to a new car. At the very bottom is the statement: “The Truth About Used Cars”, while on the inside, the top of the first page states: “Buy With Confidence”. But how much of this is true and how much is pure hype?
Can you really “Buy With Confidence”?
The inside first page of the brochure states that “CARFAX® Vehicle History Reports™ uncover the truth about used cars, providing information on: major accidents, mileage accuracy, number of owners, lemon/manufacturer buybacks, recalls/major repairs, safety & reliability”.
The brochure goes on to state that it is “information that you can trust” and that Carfax “maintains the nation’s largest, most comprehensive vehicle history database”. In addition, the information is compiled from “thousands of reliable sources”. These sources include various state motor vehicle agencies, police accident reports, car auctions, service contract companies, safety organizations, rental car companies and reports from various emissions inspection stations.
What is not covered in these “thousands of sources”?
Here is the first issue that crops up. Nowhere in the brochure does Carfax mention accident reports originating from insurance companies. After all, if a tree falls on your car while it’s parked in your driveway, you aren’t going to report it to the police, but you are going to report it to your insurance company. I don’t know about you, but if a maple tree fell on my car, I would consider it a “major” accident. The problem is, insurance companies don’t report their information to Carfax. Without this information, the Carfax report remains clear.
Well then, what about the repair shop you take it to? Glad you asked. You see, not all repair shops report to Carfax, either. So now we have a vehicle that has been damaged and repaired. What about the “huge” database at Carfax? In many cases, there will be no evidence that any of this has transpired. You, my friend, still have a car with a clean vehicle history.
What about the famous Carfax “Buyback Guarantee”?
Just as the name “Carfax” has become synonymous with the term vehicle history report (also a trademark of Carfax), their buyback guarantee has become legend in the automobile business. After all, if they make a mistake, they’ll buy your car from you, right?
Not so fast. Their simple claim of “We miss it … We buy it!” has more than a few caveats. Even in the brochure, the guarantee states “you’re protected from buying a vehicle that a DMV has reported as having severe damage, mileage fraud or lemon history”. In other words, the guarantee only covers “branded” titles and titles with mileage that is notated as “not actual”. In case you’re wondering, a branded title is a title that is issued to a vehicle that is declared a total loss (such as a salvage title or scrap title), has been damaged by water (a flood title), or used for purposes other than a private vehicle (taxi, police).
Since this status has to be reported by a DMV that reports to Carfax, the only thing the guarantee covers is a mistake by Carfax in reading the DMV report. In fact, if you go to the Carfax web site and navigate to the legal disclaimer section, you can read the following information:
“YOU EXPRESSLY AGREE THAT USE OF THE SITE IS AT YOUR SOLE RISK. NEITHER CARFAX, ITS AFFILIATES, NOR ANY OF THEIR RESPECTIVE EMPLOYEES, AGENTS, THIRD PARTY CONTENT PROVIDERS, OR LICENSORS WARRANT THAT THE SITE WILL BE UNINTERRUPTED OR ERROR FREE; NOR DO THEY MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SITE, OR AS TO THE ACCURACY OR RELIABILITY OF ANY INFORMATION, SERVICE, OR MATERIALS PROVIDED THROUGH THE SITE.”
Doesn’t exactly make you feel all warm and fuzzy, does it?
Should you use Carfax as part of your buying decision?
If you are buying from a dealer and the dealer offers you a free Carfax report, by all means don’t turn it down. Although the information contained in the report may be incomplete, it may be helpful in forming a basis for your buying decision. But there are other things that you can do to finish filling in the rest of the car history puzzle.
Have the car inspected
Ask the dealer if you can have the car inspected and then take it to a certified mechanic – preferably one who is an ASE certified master mechanic. This service normally runs between $100 and $200, but consider that money well spent, as a car with hidden damage could cost you thousands of dollars in repair bills and lower resale value.
The Bottom Line, or what kind of dessert are you looking for?
While a Carfax report can certainly be used as a tool in making a buying decision, it’s only the first step in finding out if that used car you thinking of buying is a cherry or a lemon.
Quoted from Lotpro.com