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OPINION: CARFAX is extorting my dealership

So we will see how it works here in the midwest. We are going to AutoCheck (and we're going to build a BDC with the money we save).

Kelly, I believe you'll be just fine with AutoCheck. Some top outfits including CarMax uses them.

The advantage CarFax has is their branding, and even then I'm not sure how much influence that has over the customer at time of purchase.

I believe there's an older discussion around this in the forums here somewhere.
 
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Not on Carfax's side, but lets be critical thinkers. We all hate when this happens to our own business.



1) Carfax doesn't claim to be perfect. All they do is collect information from 3rd party sources and make it readily available.

2) We still better off with Carfax (or other similar service) than without it.

3) Crooks will always find a way to cheat a system like Carfax specially with so many cars, states, areas, possible situations. Impossible for Carfax to fully enforce.



But lets be honest, one of the reasons why every dealer uses Carfax instead of Autocheck is because it shows less accidents, specially minor ones. A lot of dealers use Autocheck internally or at the auction then switch to Carfax for the consumer facing data. I don't see what's new about this report.

To make this right dealers should guarantee that the car hasn't been in an accident... but it is a lot easier and a lot less liability to manage if Carfax can put together all those liabilities from all the dealers and manage that for us.

If Carfax disappears a lot of people will miss paying them the $3,000/month for their service. It takes a lot of blame out of your hands.