Consumer Watch: The Truth Behind Crash Reports Like CARFAX

Before you have to buy your next car or truck, you'll want to read this. A metro car buyer thought she was buying a car in pristine condition because the CARFAX report said so, but the Consumer Watch team exposed the truth behind those reports.

Thursday, November 11th 2010, 6:23 pm

By: News 9


Amanda Taylor, News 9

OKLAHOMA CITY -- Before you have to buy your next car or truck, you'll want to read this. A metro car buyer thought she was buying a car in pristine condition because the CARFAX report said so, but the Consumer Watch team exposed the truth behind those reports.

CARFAX has built its company on the idea it will tell you the "truth" about a car you're about to buy. The company keeps track of a vehicle's history and for $35 dollars, you can get one of their reports and find out if the vehicle's ever been in a wreck.

"Everybody knows what CARFAX is. They always tell you to ask for the CARFAX," said Tina Weng.

That's why when Tina Weng was in the market for a used 2010 Chevy Camaro, she got one. The reports did not contain any accidents or damage to the car. But the peace of mind from the report came to a screeching halt when she started having problems.

Weng said the car was pulling to one side and there was a rattling underneath, so she inquired about trading it in for something else.

"This car cost me almost $45,000 and they told me it appraised at $26,000. When I asked why, they told me to my surprise that the entire right side had been damaged," Weng said.

The dealer knew that because they pulled what's called an Autocheck report. It's similar to CARFAX, just owned by a different company.

"I was almost in tears, just a lot of anger for being deceived. I hate being lied to," Weng said.

Consumer Watch found five of our co-workers who say their vehicles have also been in some sort of wreck with enough damage to require repair. So we pulled the CARFAX reports for each.

Out of the five reports, CARFAX caught three accidents. But one car had been in two crashes and the report only contained one of the accidents.

Consumer Watch also pulled Autocheck reports for each car and didn't fare any better. Autocheck only caught two accidents and didn't catch the second crash on one of the vehicles either.

Amanda Taylor: "Why do some accidents show up on your reports and some do not?"
CARFAX spokesperson Chris Basso: "There are literally thousands of accidents that aren't reported to anybody."

Basso said for the accidents that are reported, some police departments will let CARFAX know, some insurance companies will too and so will some body shops, but the only information CARFAX guarantees is what they get from a state's department of motor vehicles.

Oklahoma's director of motor vehicles said that information is limited.

"We can only put on the title, or on the motor vehicle record information that we get," said DMV Director Russ Nordstrom.

Nordstrom said insurance companies are required to let them know if a vehicle that they pay claim on has had more than 60 percent damage. Anything less and it won't get reported to the DMV.

Amanda Taylor: "Do you think it's misleading to have a report out there that only shows partial information?"
CARFAX spokesperson Chris Basso: "There are numerous resources out there to buyers including CARFAX that can help you make an educated purchase of used car."

In other words don't rely on it solely.

Consumer Watch took Weng's car to Gary Wano who owns GW & Son Body Shop.

"Definitely that fender has been repaired or replaced," said Wano.

So why didn't the dealer disclose that information about the Camaro? According to Oklahoma law, they don't have to. Only if the damage previously done is more than 60 percent of the vehicle's value.

Weng doesn't think that's right and said she wouldn't have bought the vehicle if she'd known it had been in a crash.

Now CARFAX is adamant that the extent of the damage to Weng's car is unknown. They said it could have just been a small dent. But it's in your best interest to also take a vehicle your about to buy to a mechanic. Most will check it for less than $100 and that could save you a lot in the long run.

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