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Tough Questions Investigation: Crashed Cars

Carfax Reports To Include Damage Discovered At Auto Auctions

POSTED: 4:24 pm EDT October 27, 2009
UPDATED: 7:00 am EDT October 28, 2009

CBS Atlanta is asking the Tough Questions every car buyer needs to know before they go shopping for a car.

We were first to expose a loophole that allows car dealers to deceive customers into buying crashed cars as if they are accident free. Now we're getting action to help protect you.

In April, a CBS Atlanta News hidden camera investigation was first to expose Metro Atlanta car dealers who were selling consumers vehicles that had major damage, knowing that the cars were damaged. In some cases, the dealers were using clean Carfax reports to deceive customers into believing the cars they were buying had never been in a wreck.

Millions of consumers trust Carfax vehicle history reports to provide them with accident information on their cars. But CBS Atlanta’s Wendy Saltzman found that Carfax was missing crucial information that could give consumers a false sense of security.

The problem, Saltzman found, was that Carfax was not reporting damage discovered on cars bought and sold at auto auctions, and the majority of used cars sold by dealers are bought at auto auctions. As a result, dealers could buy cars revealed at auction to have major damage, but pass them off to customers as accident free by showing the customers Carfax reports that said they had no prior accident history.

And that's exactly what happened to Keith Newton. Newton said his car buckled during a minor accident.

“Don’t they understand people can be killed? Or do they only understand it is an opportunity to make $200," Newton said.

In April, we first asked Carfax spokesperson Larry Gamache about the missing damage information that was leaving a gaping hole for dealers to deceive customers.

"Are these Carfax (reports) wrong?" Saltzman questioned.

“No, they are not wrong,” Gamache responded.

“But they are not reporting all the damage,” Saltzman said.

“We say on every single Carfax history report that there is no way for us to be able to tell consumers about every accident that has occurred in a car’s past,” Gamache continued.

Now following our investigation, car buyers will be safer and have access to more information on their vehicles' safety than ever before. Carfax has changed the way they get accident information and now includes damage discovered at auto auctions.

"The Carfax report is getting better, thanks in large part to your work," Gamache said.

After CBS Atlanta first exposed the missing accident data 6 months ago, Carfax began negotiations with the major auto auctions to gain access to damage reports uncovered in the resale process. The auto auctions have their own mechanics who inspect the cars, and now they are sharing the accident damage they discover with Carfax and you.

“This is a significant step forward in helping to protect consumers from unknowingly buying cars that have been previously damaged,” Gamache said.

And not only does that make the reports more complete, it also makes car buyers more safe.

“Thanks in large part to the some of the investigative reporting that CBS Atlanta has done, Carfax is now able to work with many of the auction companies and we have started adding information from some of the auctions on Carfax vehicle history reports, and we're hoping to add more,” Gamache said.

Even with this new information, Carfax officials said there is no way for anyone to know about every accident, on every car. The best way for consumers to protect themselves is always to take a vehicle to a mechanic to have them look at the car.

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