Car dealers often use Carfax as a tool to reassure consumers that the car they are buying does not have a negative history. However, what dealers don’t tell consumers is that Carfax information is incomplete and not necessarily up to date.
As auto fraud attorneys, we have seen dealers increasingly take advantage of the lag time between an accident and the information getting to Carfax. The dealer will knowingly buy a car at auction that has been wrecked and market it as a clean Carfax car. The dealer knows that the wreck history is not yet showing up on Carfax. We recently learned that over 300 cars had been purchased by Georgia dealers at auctions at which the car was announced as frame damage in the past eighteen months and offered for sale in Georgia. These cars are often sold by the dealer before Carfax includes the auction information in its report. Carfax does not obtain information from Manhiem auctions. A more comprehensive vehicle history report is available from http://www.autocheck.com.
Other Types of Auto Dealer Fraud
- Auto Warranty Fraud: The Window Sticker
- Odometer Fraud
- Auto Fraud Involving Wrecked & Salvaged Autos
- Bait and Switch Fraud
- Yo-Yo Car Sales