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| CarFax Reports Misleading! Sept. 24, 2004 While agreeing to settle a lawsuit out of court, CarFax has refused to acknowledge any wrongdoing - but the reports it issues can be misleading. As part of a settlement in an Ohio court, CarFax agreed to make prominent disclosures that the history report it issues might not contain complete information. That is the rub! The reports are usually based on data available via state Motor Vehicle Departments as to whether or not the title has ever been declared as a “salvage” vehicle and information from insurance companies regarding major damage claims - ie: flood, collision, etc. But, if the car was not insured, no report of the damage will exist with either insurance firms or the DMV. This newspaper recently ran a CarFax report on a vehicle that had been stolen and never recovered. The car was reported stolen to the police, yet the report from CarFax made no such revelation - and it reported the vehicle history to be just fine! Vehicle-history reports have become popular for consumers who want to know whether the used vehicle they're buying has been wrecked, flooded, stolen, repurchased under a state Lemon Law program, or had another significant problem that could affect its reliability, safety, or value. Some car dealers offer prospective buyers free reports as evidence that a used vehicle has a clean history. But, the reports are nothing more than a selling tool and the public should realize that they carry no more weight of legitimacy than the promises of the used car salesman. We, too, feel that it is nice to get some reassurance as to the history of a vehicle we are considering purchasing - but we would like it even better if CarFax actually states: This vehicle has Never been reported stolen; This vehicle has Never been in a flood; This vehicle has Never been damaged in a fire; This vehicle has Never been in a collision causing damage in excess of 50 percent of its value. Without such guarantees, the reports CarFax issues are - another promise from the salesman! |