Wednesday, March 12, 2008
[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
Thursday, September 20, 2007
I'm Too Fat For My Car
Well, maybe not me personally, by myself with a bag of Doritos and a Big Gulp perched on top of the
cupholder since it won't fit inside the darn thing. But me and a couple of friends? Well, despite our relative success in life and being bright folks, we just may be too fat for our cars.
The National Highway Traffic Safety Administration long ago set "gross vehicle weight limits". Those rules essentially told manufacturers not to reinforce the chassis with tin foil, for example, because if a vehicle claimed to support a number of adults, each adult would be assumed to weigh 150 pounds. So a four passenger vehicle must carry 600 pounds safely.
Guess what? That includes luggage too.
But a funny thing happened on the way to the 21st century. Cars, those death traps Ralph Nader wailed about, got safer and more reliable. And Americans got heavier and fatter.
The Centers for Disease Control has
data showing the average weight of the U.S. population going back to 2002. That study shows American men weighed an average of 190 pounds while American women weighed an average of 163 pounds. (The study also amusingly shows men's waist sizes as 39 inches, which is possible for taller guys, but we think some of those waist measurements were from the guys who wear their pants two inches below their waist.)
Think about the averages again. If 4 men are in a car, the old vehicle standards presumes they weigh 600 pounds. In reality, they weigh an average of 760 pounds. Four men from the old standard are the same weight as today's standard.
USA Today examined this issue and spoke with
auto manufacturers about overweight Americans exceeding their vehicle's weight limits. The manufacturers swear to the paper there is a safety limit involved because, as
USA Today points out, two 200 pound men aren't supposed to be cleared to ride in a Corvette or a
Miata. We believe the manufacturers are conservative just like they are when your vehicle's fuel gauge reads empty, and you know you can drive to the gas station.
What is most worrisome for us is the idea being bandied about now that
insurance companies may soon be rejecting claims for structural damage to a vehicle if the combined passenger weight exceeds the manufacturer's posted weight.
Let's be clear. This is bad for consumers, this is bad for the insurance industry and this is bad for manufacturers who point at the government regulations. But those regulations are a minimum, the insurance companies know better and all the regulation in the world isn't changing that 190 pound statistic.
This is not a blog calling for a referendum on national healthy policy regarding obesity. We do need to address that issue through better education and reinforcement of the message. Just as smoking rates declined, obesity can also decline. But the facts are these:
American men in 2002 weighed an average of 190 pounds, not 150.
American women in 2002 weighed an average of 163 pounds, not 150.
Ask yourself this question:
Are you weighing less today than you did five years ago? And then ask this question. Why can't two men of average weight (regardless of whether that weight is healthy, the number is the number) drive in a Corvette without the chance for an insurance company to claim the vehicle was improperly operated?
Labels: insurance, overweight, safety, vehicle
Thursday, August 09, 2007
Flood Vehicles Showing Up For Sale, Carfax Warns
After weeks of heavy flooding in the Midwest, used car shoppers everywhere need to be on high alert as vehicles damaged by floodwaters may be sold - knowingly or unknowingly - by dealers or individuals.
A recent study by vehicle history leader Carfax shows that the number of flood cars discovered by their customers' reports has doubled nationwide in only five years. Thousands of waterlogged wrecks from Hurricane Katrina and Rita already have made their way back onto the market. The Virginia company also warns that ore are still showing up around the country.
Carfax continues to offer a
free Carfax Flood Check to help consumers avoid unknowingly buying a flood-damaged car. Under the Carfax Buyback Guarantee, cars purchased with Carfax Vehicle History Reports that do not contain DMV-reported incidents (salvage, flood damage, lemon, odometer problems) may be eligible to be bought back by Carfax.
Labels: carfax, cars, vehicle
Thursday, February 22, 2007
Carfax Study Shows Number of Flood Damaged Vehicles Doubled
A new study by Carfax shows that waves of flood damaged cars are washing up in areas all across the country. Over the last five years, the number of waterlogged wrecks revealed by Carfax Vehicle History Reports has doubled nationwide. Furthermore, massive increases have occurred in numerous states. Individual state results can be found in the table below.
“Our data shows a clear pattern of growth for those states within close proximity to the Gulf Coast or that have large populations and sprawling urban areas,” said Larry Gamache, communications director at Carfax. “Flooded cars are indeed on the move and consumers everywhere are at risk. However, using the information gathered in our database, and new resources like Carfax Xpert, used car shoppers can uncover some of the nasty secrets a car may be hiding.”
Water can fatally damage a car’s most important features – like the electrical and safety systems – causing airbags and antilock brakes to malfunction and effectively turning the car into a ticking time bomb. Under the Carfax Buyback Guarantee, cars purchased with Carfax Vehicle History Reports that do not contain DMV-reported incidents (salvage, flood damage, lemon, odometer problems) may be eligible to be bought back from Carfax.
With used car sales expected to top 44 million this year, consumers should be on high alert for signs of hidden damage and potential fraud.
“In the aftermath of Hurricane Katrina, an unprecedented effort was made by the auto industry to identify, process and report these vehicles, as well as warn consumers about the dangers of flooded cars,” added Gamache. “We are ever-vigilant in making sure our customers have the information they need to protect themselves. We urge anyone buying a used car to get a Carfax Vehicle History Report that qualifies for the Carfax Buyback Guarantee and have a mechanic thoroughly inspect the vehicle prior to purchase.”
Flood Damage Growth By State (2002 – 2006)
| AL– 374% |
| DE– 112% |
| KS– 151% |
| MN– 173% |
| NH– 30% |
| OR– 57% |
| UT– 7% |
| AR– 122% |
| FL– 96% |
| KY– 102% |
| MO– 170% |
| NJ– 46% |
| PA– 161% |
| VA– 189% |
| AZ– 84% |
| GA– 159% |
| LA– 343% |
| MS– 633% |
| NM– 27% |
| RI– 40% |
| VT– 39% |
| CA– 25% |
| IA– 28% |
| MA– 26% |
| MT– 172% |
| NV– (-4%) |
| SC– 63% |
| WA– 47% |
| CO– 77% |
| ID– 32% |
| MD– 136% |
| NC– 47% |
| NY– 35% |
| SD– 86% |
| WI– 108% |
| CT– 6% |
| IL– 23% |
| ME– 127% |
| ND– 131% |
| OH– 99% |
| TN– 52% |
| WV– 44% |
| DC– 8% |
| IN– 62% |
| MI– 162% |
| NE– (-12%) |
| OK– 231% |
| TX– 68% |
| WY– 54% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| *excludes Alaska and Hawaii |
Labels: carfax, vehicle
A new Carfax.com study shows that the number of "salvaged" cars checked by the company's customers increased 50% in five years.
