Carfax is under fire from both the media and car dealerships. In March, ABC’s 20/20 “investigation revealed dozens of used cars with clean Carfaxes — even though the cars had been in accidents, and others had frame damage.” Then Automotive News reported 120 dealerships have teamed up to sue Carfax for $50 million citing the website of having a monopoly on vehicle history reports.
Paul Nadjarian, Founder and CEO of Mojo Motors had this to say about the lawsuit:
The best result for cars shoppers is to have easy and quick access to as much information as possible. Most dealers either use Carfax or AutoCheck. However, the exclusive deals Carfax has struck with third party website and certified programs does not allow dealers that use AutoCheck to provide history reports to cars shoppers on those sites – this is just plain wrong. This hurts customer and dealers. If a dealer has already purchased a vehicle history report, regardless if it is Carfax or AutoCheck, cars shoppers who find the dealer’s vehicle online should have access to the report. This is the best result for the customer and the dealer.
Despite the lawsuit and news report, Carfax remains a popular choice for car shoppers looking for vehicle history reports. Just yesterday morning, a shopper using Mojo Motors emailed us to complain about the Carfax reports of a particular dealership. He said none of the cars on their lot had “clean” Carfax reports and he wouldn’t buy a car with a history of accidents or engine repairs.
In fact, car shoppers using Mojo Motors only click the ‘Follow’ button more than the link to see the Carfax. Since March 1st, the Carfax link has been clicked twice as much as a vehicle’s price history, five times as much as a link to a dealership’s map and four times as much as a link to the dealership’s website. Shoppers want a vehicle history report.
Vehicle history reports are important during preliminary research and can be a good indicator if it’s even worth pursuing a vehicle. However, a mechanic with extensive vehicle knowledge should inspect any car a shopper wants to buy. This can help shoppers avoid that feeling of buyer’s remorse when they need to replace the brakes a week after buying a car.
Written by Max Katsarelas