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OPINION: CARFAX is extorting my dealership

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#11
Consumers seem to accept AutoCheck as a valid vehicle history report. The bigger issue is the marketing advantage Carfax has created by investing in an exclusive partnership with AutoTrader and Cars.com to essentially extort dealers through a modern day protection scheme. By excluding competitive vehicle history reports, the dealers who have CarFax showing have a competitive marketing advantage. To what extent does a consumer who spends 9 hours researching a used vehicle favor a vehicle with a free history report over one they have to buy?

There are all sorts of ways to work around the system, and Ford dealers are able to show AutoCheck on AutoTrader and Cars.com. If AutoTrader were a free listing service for dealers, the selling of ad space and exclusivity to other vendors would be good business. Since we all pay AutoTrader in their own "you gotta list your inventory here or fail" extortion plan, this second beating we take as a result of their deal with Carfax is ridiculous.
 
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#13
The way we justify third party display ads is by the amount of traffic that is directed to our websites and subsequently return to them. If we only look at leads generated directly from AutoTrader, most everyone would have cancelled them long ago. You have to decide if you are willing to be held up for an additional $18,000 per year.
 
#15
Not a fan of CarFax, they make consumers believe they need a carfax report, and only a carfax report otherwise they'll be buying a lemon and getting scamed. Makes dealers/sellers look horrible when they aren't provided, just go look at the commercials about the shady salespeople. All because they didn't have a carfax? Yeah.. I don't know about you, but that's not how I want the auto industry to be represented, it's already negative enough. Not to mention, their $$ model to capitalize in dealers.. I'll prob be switching to AutoCheck here soon.
 
#16
What about the OEM's??? I know with Toyota, Chrysler and GM, it's a requirement to run a CarFax for the CPOV program. It's on the freaking check list that has to be completed. Its not just your 3rd party lead providers that are promoting CarFax. Why the hell doesn't AutoCheck get of their ass and do some freaking advertising. We currently use AutoCheck at all of our dealerships and customers have never heard of it before. Example ( "Here is the Autocheck Mrs. Jones for the preowned vehicle we just looked at". Mrs. Jones says "An Auto...what???" We Say " It's basically a CarFax, just through a different company.") Then you have to go through the motions of explaining what it is. I love the pricing that Autocheck offers for the service but they gotta try and advertise some. Keep in mind that that's all you get is the service when you sign up. There's not any one owner window stickers or showroom material explaining what the heck an autocheck is. I've never received a phone call, email, letter or any type of communication from Autocheck asking if we are happy with their service or pissed off. NOTHING.... The only thing that comes is a bill. That's it! We may be changing over to CarFax. I'm still analyzing the info. So if any of you CarFax reps read this, I haven't made a decision yet so don't bother calling me:). I do know this. The reason we are on Autotrader and Cars.com is because they are spending money in advertising and driving people to their sites. CarFax is doing the same even if it is with the lame CarFox who I would love beat every ounce of fur off of him with a stick. At least they are advertising. Whens the last time you saw a Autocheck commercial??? For me, Never!
 
#19
"Here is the Autocheck Mrs. Jones for the preowned vehicle we just looked at". Mrs. Jones says "An Auto...what???"
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Rick, call it a "CarFax". Here is your CarFax, Mrs. Jones. If she were to question it, just say, "we use AutoCheck, it's more accurate".

I may have said this earlier, but I have sent cars to the auction, with a clean CarFax, only to have them pull a AutoCheck and found out that it had been wrecked. Now, I have a 60 day old car, that is fully reconditioned, that should bring clean book but I'm lucky if it brings rough. Beyond all the hype and advertising, it is more accurate. It has happened to me and I bet it has happened to your store.
 
#20
kevinfrye said:
Perhaps the question is whether the brand value of CarFax is worth the significant premium you pay for it...
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This. I recently went to a dealership and was looking for a Scion TC w/ < 75k miles for less than 10k (still haven't found one by the way .. hint hint). And I said

"Show me the CarFax"

While he didn't pull out a Car Fox. He did print out an AutoCheck. I was disappointed for like 1ms until I realized it was pretty much the same thing. That's my personal opinion from a "car buyer" end.

ps - www [dot] ihatecarfax [dot] com is still available.
 
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