Used Car History Reports Not Always Accurate

Posted on June 12, 2009 in Consumer Goods

Many used car shoppers rely on used car history reports from services such as Carfax and AutoCheck. But an investigation from Consumer Reports magazine shows that these reports are frequently incomplete, especially when it comes to serious accidents.

Consumer Reports researched dozens of cars advertised for sale online by their owners. While the owners reported accidents, from major collisions to fender benders, many of the cars came back with clean records from all five of the major used car history services.

The most underreported accidents were the severe collisions where the car suffered extensive damage but was not considered “totaled.” If an insurance company deems that the cost of repairs exceeds the value of the vehicle, the car is given a “salvage title.” However if the car is uninsured, privately insured, or the cost of damage is just below the “total loss” threshold, those accidents may not end up on the vehicle’s history report. These cars can be repaired and sold to unsuspecting buyers for a considerable profit.

Consumer Reports is calling on all of the used car history report services to be more diligent in making sure that these accidents are included in all reports.