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OPINION: CARFAX is extorting my dealership

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#21
While AutoTrader and Cars.com are easy targets based on how much we pay them, it's worth noting that a wide range of classified sites from Dealix to AolAutos appear to be exclusive with CarFax. In fact, AolAutos even has a search option to see "Only Listings with Free CARFAX Report" next to the CPO only option.
 
#22
I have been aware of this for a few years. While the "Free CarFax available" is definitely valuable, I find the "CarFax 1-owner" badge displayed in the SRPs is even more valuable on Autotrader.com:

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I deleted the dealer data in these listings, but you can see that the dealer who has CarFax enabled gets an extra "1-owner badge." In SRPs, I believe conveying that your vehicle is a 1-owner is helpful in addition to photos, price and comments. On Cars.com, the difference is much smaller as it says, "CARFAX Record Check" versus, "Free CARFAX Report."

Now for our dealership's side of the story:

We are part of a multi-store group that shares the same owner. However, all of our dealerships are managed completely independently. I contacted CarFax to sign up for the unlimited CarFax package and was told that if we didn't sign up the entire group, they would not allow us to sign up for unlimited CarFax program. Apparently, corporate CarFax has decided from the top down that if you are part of a group, it is all or nothing. They said that this was due to some dealers only signing up one dealership and sharing the password for the whole group. I understand where they are coming from, but I feel that they could figure out a better workaround (i.e. IP filtering).

At any rate, we use Autocheck and other than the SRP badge, I haven't noticed a difference. In fact, I put "Vehicle history reports are available for all vehicles at our website" in all of my comments.
 
#23
Pretty ironic thread, actually:

When I took over my pop's dealership in April, we were hit with a lawsuit from some ambulance chaser for selling a car 3 years ago that had frame damage. Now, the customer signed a statement of facts, disclosure form, and the CARFAX report, which showed no accidents, a couple services records, etc. Turns out the AutoCheck announced it as frame damage from the auction my father purchased it at.

Now, we make them acknowledge a Carfax, Autocheck, and NMVTIS report.

It seems that Carfax is necessary for the branding, especially as a used car dealer. It's a great selling point, the merchandising makes your lot look cleaner and more reputable...

But then I realized we're paying $999 a month for unlimited reports.. and you can order a 30-day unlimited report package from Autocheck for less than $50.

I'm thinking of dropping Carfax and replacing it with just Autocheck reports, not necessarily including the branding. But great point about Cars and ATC though, maybe I should put a link to the autocheck in the seller's comments if we switch.
 
#25
Perhaps this has already been talked about, but here's my take. There is an easy way to kill Carfax and others. Manufacturers are installing EDR's (little black box for vehicles) in automobiles. Why not have these EDR's interact with the information panel. Consumers could pull up a vehicles history right on the dash. Not only would crash data be there, but service records as well. Consumers are then educated as to the advantages of properly maintaining a vehicle if expecting a fair trade in value. Think about what V Auto could do with this additional data. There are a lot of win win scenarios for manufacturers deploying this technology. Would certainly motivate consumers to properly maintain their vehicles. Carfax slowly fades away in this scenario.
 
#26
Jerry Thibeau said:
Perhaps this has already been talked about, but here's my take. There is an easy way to kill Carfax and others. Manufacturers are installing EDR's (little black box for vehicles) in automobiles. Why not have these EDR's interact with the information panel. Consumers could pull up a vehicles history right on the dash. Not only would crash data be there, but service records as well. Consumers are then educated as to the advantages of properly maintaining a vehicle if expecting a fair trade in value. Think about what V Auto could do with this additional data. There are a lot of win win scenarios for manufacturers deploying this technology. Would certainly motivate consumers to properly maintain their vehicles. Carfax slowly fades away in this scenario.
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i like that idea Jerry. Im sure there would be more involved to get this to work, along with a standard that all manufactures would have to abide by. But I like it. What is the customer doesn't go to the dealer? Does the service get recorded?
 
#27
Jeff Kershner said:
i like that idea Jerry. Im sure there would be more involved to get this to work, along with a standard that all manufactures would have to abide by. But I like it. What is the customer doesn't go to the dealer? Does the service get recorded?
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A further question would be: How much of that recording becomes an intrusion in our privacy? The system will record where we go, what we do, time, date, etc.
 
#28
yagoparamo said:
A further question would be: How much of that recording becomes an intrusion in our privacy? The system will record where we go, what we do, time, date, etc.
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If one wants to maintain their warranty they would comply. This way manufacturers can be assured consumers are doing the required maintenance. I am sure the industry spends billions fixing cars that were neglected by consumers not doing preventative service requirements.

The manufacturer would have a special computer access tool that could update the vehicle history. People who want top resale would be encouraged to do business with an OEM dealership. It's a win win for the OEM and dealership.
 
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