Great video say no to carfax
03-24-09, 06:59 PM
#16
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These dealers are shady as hell!!! I was messing around on auto trader and found an 05 g35 coupe for 17.9 with 23k miles. Dealer has a clean carfax posted but I did an autocheck and found frame damage.
I emailed the dealer how he could justify the price. His reply......Don't buy it. Thanks. HELL NAW! Don't buy from World Auto in GA!!!!!
I emailed the dealer how he could justify the price. His reply......Don't buy it. Thanks. HELL NAW! Don't buy from World Auto in GA!!!!!
03-24-09, 10:50 PM
#18
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Marketplace is a great show. They do 95% of their car based stuff in Vancouver, which is the crooked car dealer/repair shop capital of Canada. I bet all those cars with frame damage were at max from 1-2 dealers only.
03-24-09, 11:34 PM
#19
Insurance companies want to keep an insured vehicle's value as high as possible to avoid the likelihood of a total-loss (write-off). With an example of a 2gs, by valuing the car at $12k, a $5k damage means a payout of $4-4.5k (depending on deductible), which is a lot cheaper than paying out $8-10k (market value). In fact the insurance book value on all vehicles are often inflated and does not really track the market price in most cases. By reporting the accident to a government agency, this will effectively lower the value of the car by a significant amount and increase the chance of a total-loss.
seems like the best way in most cases is to go to the source- the insurance company
i don't understand how an insurance company would lose out if they reported an accident.????
ideal imaginary scenario:
I am a buyer. i want to buy a car from John Doe. I call John's insurance company and ask him if he's ever been in an accident.
Insurance company says yes. I say ok, and I lower my offering price to buy the used car from John Doe.
The insurance company loses nothing, right? because the insurance compnay is not involved!
i don't understand how an insurance company would lose out if they reported an accident.????
ideal imaginary scenario:
I am a buyer. i want to buy a car from John Doe. I call John's insurance company and ask him if he's ever been in an accident.
Insurance company says yes. I say ok, and I lower my offering price to buy the used car from John Doe.
The insurance company loses nothing, right? because the insurance compnay is not involved!
03-25-09, 05:02 AM
#20
Lexus Champion
Yeah this was pretty shocking to me when I found out last year. I was talking to my very reputable and expensive lexus recomended body shop, and they were telling me that no one reports accidents to carfax.
He was baffled as to what this company actually does. He said that body shops don't have any system to report things to carfax, and insurance companies do not report the accidents because it would decrease the resale of the vehicles. Even when they are totaled. Pretty spooky stuff.
In other words, there is no incentive for anyone i.e. auto body shops, police departments and insurance companies to report these items, because it would cost them time, effort, and more imporantly money!
This is the current state of the global economy these days. Not suprising with our current banking situation.
He was baffled as to what this company actually does. He said that body shops don't have any system to report things to carfax, and insurance companies do not report the accidents because it would decrease the resale of the vehicles. Even when they are totaled. Pretty spooky stuff.
In other words, there is no incentive for anyone i.e. auto body shops, police departments and insurance companies to report these items, because it would cost them time, effort, and more imporantly money!
This is the current state of the global economy these days. Not suprising with our current banking situation.
03-25-09, 01:07 PM
#21
I sold my car last month. It had been in three accidents. Two of them were reported through insurance, each one to a different insurance company.
I ran a Carfax report, and it came up with a perfect bill of health and no incidents.
I learned real quick not to make any decisions based on a Carfax report.
I ran a Carfax report, and it came up with a perfect bill of health and no incidents.
I learned real quick not to make any decisions based on a Carfax report.
03-25-09, 03:32 PM
#22
Lexus Fanatic
Insurance companies want to keep an insured vehicle's value as high as possible to avoid the likelihood of a total-loss (write-off). With an example of a 2gs, by valuing the car at $12k, a $5k damage means a payout of $4-4.5k (depending on deductible), which is a lot cheaper than paying out $8-10k (market value). In fact the insurance book value on all vehicles are often inflated and does not really track the market price in most cases. By reporting the accident to a government agency, this will effectively lower the value of the car by a significant amount and increase the chance of a total-loss.
well crap. we all lose then.
if insurance companies ran their own carfax-like service, they could probably make $$$$$$ enough to offset any loss in car value, since a lot of cars don't have frame damage
man, this carfax is a real scam.
3 accidents and a clean bill.
Last edited by dunnojack; 03-25-09 at 03:39 PM.
03-26-09, 11:30 PM
#23
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I have to say that as a dealer myself, the report is biased. Frame damage is not always as a result of an accident and at the auction the "caution frame" light comes on. Does not mean that there is frame damage but that there might be.
Also, when a bumper is replaced, we all know that it could have been from a very minor accident and not a major accident. me damage on some vehicles could be cause by the type of driving or not raising it properly with a jack.
I only use carfax as a guide for the number of owners and some maintenance, never to tell me the entire history of the vehicle.
Also, when a bumper is replaced, we all know that it could have been from a very minor accident and not a major accident. me damage on some vehicles could be cause by the type of driving or not raising it properly with a jack.
I only use carfax as a guide for the number of owners and some maintenance, never to tell me the entire history of the vehicle.
03-27-09, 07:12 AM
#24
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I have to say that as a dealer myself, the report is biased. Frame damage is not always as a result of an accident and at the auction the "caution frame" light comes on. Does not mean that there is frame damage but that there might be.
Also, when a bumper is replaced, we all know that it could have been from a very minor accident and not a major accident. me damage on some vehicles could be cause by the type of driving or not raising it properly with a jack.
I only use carfax as a guide for the number of owners and some maintenance, never to tell me the entire history of the vehicle.
Also, when a bumper is replaced, we all know that it could have been from a very minor accident and not a major accident. me damage on some vehicles could be cause by the type of driving or not raising it properly with a jack.
I only use carfax as a guide for the number of owners and some maintenance, never to tell me the entire history of the vehicle.
03-27-09, 10:44 AM
#25
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I bought a 350 few months ago. Carfax report came out clean, so I drove few hours and inspected the car, it looked clean. I purchased it, came home, later had another expert inspect it, and found out the the car was hit on the right side door. Luckily for me, the car had no frame damage, but the point is Carfax failed to provide me with that info.
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