[auto] More Damaged Cars Being Sold

A new Carfax.com study shows that the number of "salvaged" cars checked by the company's customers increased 50% in five years.

This is big news and worth any consumer's time.

A salvaged car is one that has essentially been damaged to a point related to its value. That percentage varies from state to state and the calculation methods used vary from company to company. It obviously benefits some companies, such as an insurance company, to avoid declaring the car as a salvage vehicle and instead repair the vehicle.

But even when cars and light trucks were reported to the state as salvaged, they were often transported to other states where reporting requirements or other technicalities allowed someone to sell the car without disclosing the extensive damage. This practice is called "title washing", and while still seen today, companies like Carfax that pioneered the concept of national vehicle history, have surely cut down on the number of such vehicles.

Those salvage cars are out there, however, and the volume surprised Carfax, which eats, breathes and sleeps vehicle history information.

"This problem is more widespread than we previously thought," said Larry Gamache, Carfax's communications director in a statement. "Based on our data, the number one concern consumers should have right now, even above flood damage, is unknowingly buying a used car that was badly damaged in an accident. Buying a salvaged car may not be a bad investment, but you must make sure you're aware of any prior damage and, more importantly, see that the proper repairs were made.

Labels: autos, carfax, safety, vehicle

posted by George Bounacos at 8:58 AM |