Loading

I think Carfax is killing the used car market. Every other car has an accident on Carfax and it's hurting a good car with a minor repair. What do you think ?

Views: 51

Reply to This

Replies to This Discussion

Not really Dru,

When selling used cars I don't ever want to sell the customer a bad car, I always asked the customer to take the car to a personal machanic to make sure the car check out.

When the customer would came back from having the car checked out there could be a couple of items that need to be fixed and I would work the price out with them.

Did I lose a sale sometimes? Yes I did but I also gained the customer trust and it gave me a chance to find another car for them that check out OK. I seen not just carfax reports that were wrong, I seen all of them that had mistakes.

Believe me when your selling aots of used cars, there is no time for HEAT or Unhappy customers on the showroom floor.

Is there nothing in the pricing that can be done to circumvent the negative perception of a car with a small wreck & repair?  I would think that cars with perfect histories would go at a used car premium, while cars with minor accidents would go for less.  It would be expalined to a buyer as a supply and demand issue.

Carfax has no business implying a value of any vehicle.They have overstepped their purpose.
I personally think Carfax is a far overvalued tool in car shopping. I also think they need to dial back their media presence. If they were in the practice of "verifying" any derogetory information they post about a specific car, they would be an asset. Our dealership recently aquired a totally non damaged vehicle that was involved in a theft. According to the "Carfax" report, it had serious damage, the vehicle was a TMU, and the warranty was voided. And also warned to stay away from that vehicle.  NONE of that was accurate and they refused to ammend the report. How is that a valuable tool?
 I have had erroneous Carfax data changed promptly by Carfax if you have the proper supporting documents,I will say that, but I do not think they should be venturing any opinions on the value of a vehicle they cannot see.
In my Humble opinion, this isn't hurting the used car market.  The responsibility we have as Sales people is to help our customers find a car.  Carfax is a tool for both us and the consumer if properly used.  Give the customer the opportunity to choose an "upgrade" that hasn't been in an accident.  Or better still something still in the same price point that hasn't been in an accident but has a few less options.  The commercials present us as the type of people who would want to hide things.  If you present the Carfax as evidence of prior statements, it immediately provides credibility.  When your helping them find the right car...you should already know if a Car accident (even a fender bender) is a deal breaker for them, If so Avoid showing those cars.  Remember your there to serve the customer and help them find one of their largest purchases of their life.  This might also be a reason to ACV those trades differently, knowing that regardless of "Book Value" most dealerships sell based on Market Value.  If its causing that big of a problem, make it a great tool for a different ACV.

A minor repair when disclosed to every potential customer early in the process should not be a big problem handled professionally.  I personally disagree with service history being posted as it may or may not show the true story of maintenance history for any vehicle.  Every vehicle history service (CarFax, AutoCheck, etc.) serve as a good tool for odometer history, title history, and salvage/rebuilt history that adds to our dealership's value story with our customers.

The problem is the standard by which CarFax labels a vehicle with major damage.  Where is that standard disclosed?

John, You took the words right out of my mouth that I was looking for. They have no standard for labeling a vehicle. They also make no effort to verify any of the information that they put on the report. While their media presence would imply that you are getting the "true story" that isn't exactly the case.

John Wolf said:

A minor repair when disclosed to every potential customer early in the process should not be a big problem handled professionally.  I personally disagree with service history being posted as it may or may not show the true story of maintenance history for any vehicle.  Every vehicle history service (CarFax, AutoCheck, etc.) serve as a good tool for odometer history, title history, and salvage/rebuilt history that adds to our dealership's value story with our customers.

The problem is the standard by which CarFax labels a vehicle with major damage.  Where is that standard disclosed?

90% of the cars that are in decent shape have clean vehicle history reports.  I don't think it's killing the used car market because it builds value in most used cars on the road.
I had a Lexus with minor damage really it was only a scuffle however the other drivers car had more damage. This did hurt my efforts to sell. I do believe however for the most part carfax is on top of their game.

Great comments by all of you guys. Here is my opinion on the Carfax discussion:

  • I feel Carfax betrayed its customer base-the dealers. Before a Carfax was a household name, we the dealers used it so that we could make better decisions when appraising vehicles. Carfax needs to report the facts and let the dealers determine what they "should sell it for."
  • Just because a vehicle has been wrecked does not make it a bad apple--no more so than if the pipes burst in your home they dont total the house...they make the necessary repairs to restore your home back to (or better) what it once was.
  • Interview your customer who is trading in the vehicle and find out exactly what happend so that your prospects know the story; most previous owners of the car do not mind telling the customer about their vehicle-just make sure a salesperson is in the room to avoid any mishaps :)
  • We post a moroney size label on our used cars with the first page of the vhr (Autocheck) which gives a summary of the vehicles history.
  • We have also seen cars that had paintwork and nothing reported on the VHR. Does that mean it's a "good car?"

Customers need assurances; the more info you give them the more at ease they will feel and the more credibility you will receive because you are showing them you have nothing to hide.

RSS

Blog Posts

How to Buy New Tyres

Posted by Simon Hopes on August 29, 2016 at 7:51am 0 Comments

Knowing when to replace the tyres in your car is very important. Most manufacturers will advise you to change the tyres after they have been driven over 40,000 kilometres. However, manufacturers don’t take the road or driving conditions into…

Continue

The Best Auto Glass And Windshield Replacement Service

Posted by Samuel on August 29, 2016 at 6:00am 0 Comments

Are you looking for the Auto Glass and Windshield replacement service, you are come for the perfect place. They are offering the professional and the quality service to the customers. If you can get help from this…

Continue

Essay Writing Service Online To Complete Your Assignment Fast

Posted by Samuel on August 27, 2016 at 7:51am 0 Comments

Image result for essayagents

At present most of the students looking to hire the experienced writers to complete their paper work and assignment work in the proper manner. It is the ideal way to get free from stress along with this you can earn good grades…

Continue

Find the Perfect Fit

Posted by Paul Potratz on August 26, 2016 at 12:38pm 0 Comments

LinkedIn is making moves to be one of the largest social media platforms for professionals. The shift is growing toward more members who are looking for freelance work and members who are growing into entrepreneurship.…

Continue

Mobile CRM’s Are Key

Posted by Aubrey Hankins on August 26, 2016 at 11:45am 0 Comments

No matter what industry you’re in, mobile accessibility affects the everyday lives of everyone. The world has become mobile accessible from every direction. From…

Continue

64% of Sales Professionals Close Deals With Social Media

Posted by Joseph Little on August 26, 2016 at 11:42am 0 Comments

 

 

Social media marketing is growing every day as a result of increasing consumer activity across social…

Continue

de sponsor

newsletters

dE Sponsor

© 2016   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service