Car Fax...Friend or Foe? Do I avoid making an insurance claim?
Recently I was contacted by one of my clients who was involved in an accident with his car. Not his fault of course but his Mercedes needed an expensive repair. Since it was like new before the accident, he was very upset and feared the car would never be the same again. I remembered that when we were settling on which car he would buy, he demanded that I show him only the cars that had a "clean car fax". He was distraught at the idea of owning a car with a "dirty car fax". He asked me to write a letter he could include with a request to receive a higher settlement from his insurance company. He wanted his insurance adjuster to account for the diminished value his car had suffered now that it shows an accident on the car fax. He knows that even if the repair is top rate, he will receive a lower offer for the car when he decides to sell or trade it.
Transparency is a great new dimension that car buyers are enjoying in the age of google. Of course when anything cost somebody money, such as a car fax being marked with an accident, people begin to cheat. The latest trend is that many car owners will refuse to inform the police or their insurance companies that their car was involved in a crash for fear of loosing market value. Who can blame them? Insurance companies must be enjoying the new trend that has reduced the amount of small, superficial damage claims to vehicles caused by minor scrapes. This trend is causing many owners to make an insurance claim only as last resort. In some cases, even if the damage is more than $1000.00.
When considering purchasing a car, a buyer should look close for damage. There maybe painted or replaced panels on the body of the car that have not been reported on a car fax report. It's even occurred at our dealership that previous older damage from months ago has suddenly and mysteriously appeared on the car fax after a car has changed hands. The buyer had counted on the info on the report to be accurate at the time. There is no recourse when damage from a prior owner is uncovered and reported. It's not an exact science.
There is a new way to check the severity of the damage done to a vehicle that shows damage on a car fax. This is great new service offered for both the seller and the buyer. This is especially true if the seller knows the damage is slight. It's called a PRO-VIEW REPORT. It is performed by skilled inspector employed by an independent third party company called True Frame. The vehicles are thoroughly inspected for any damage or paint refinishing and it's all published in an easy to read report. It's also linked the the car fax for all to see. There is a hyperlink in the body of the car fax that invites the reader to click and look at the damage report. Brilliant! Now instead of wondering what might have happened during the accident and how well was it repaired, you can click and see exactly what happened and what the car is like now. It's well worth the current price of between $200-$250 to have this published if you know your car was only scratched. Google "true frame" or "pro view report" to order an inspection. One downside of getting an inspection performed is that any serious damage detected will show up on the report for all to see. This'll make matters worse when considering the value of the damaged car.