A little background: I consult with a dealer group (not the one listed in the screenshots below) who is a "CarFax Advantage Dealer", who pays approx $4500/month in service fees to CarFax. They are a long-standing dealer in the community of a major metro market, with an overall positive reputation (online and off) that supports and cares for its customers and vendor partners. Numerous volume awards, CSI awards, charity contributions, etc.... they are the real thing.
On 3.13.12 a customer purchased a vehicle from this dealer with a "clear" CarFax. BTW: this dealer puts a copy of the CarFax in the deal of every used vehicle sold at the time of sale. This is a screenshot of one of the pages... take care to notice the date(s):
On 6.6.2013 (over a year later), the customer comes into the dealership upset because they are now trying to sell the vehicle and the CarFax shows a "total loss". Screenshot:
Notice that this "data" was not reported until 2.25.2013 (after the customer purchased the vehicle). Don't want to make the story too long... but apparently the insurance company is a non-reporting entity to CarFax, and CarFax was only recently able to obtain claim information about this company, and not from the company directly - but through a 3rd party source. And, on top of that the vehicle was not a total loss (does not have a branded title) and was actually some hail damage repair.
Dealer has now shared all the information with CarFax, and CarFax has now updated the information (without admitting fault). Screenshot from 6.25.2013:
Too late, the damage is done. The customer is upset. And, in today's online/digital world, reviews and reputation, with something like this you really don't want to make a customer upset. And, if we really think about it, we would all feel the same way.... would we ever believe anything from CarFax or the dealer again? The customer is serving in the military at a local Air Force base. Could see the news headlines now -- "Local Dealer Sells False Promises to Military Vet". So, the dealer decided to make it right and buy the vehicle back. Don't have the exact number yet, but this will probably cost $10k+
So you would think CarFax would want to help the dealer, that pays $4500/month, with the loss that the dealer has. Nope.... zero/ziltch/nada. Their statement (paraphrase) was "Unless the title is branded, our guarantee doesn't apply. We are a tool, and the customer is taking the ultimate risk when they buy the car, let them take you to court."
To make things even worse, this is the 3rd vehicle that has had this type of situation happen in the last few months for this dealer.
Has this happened to anyone else? How does your dealership handle it? Have you tried to get CarFax involved? What has been your outcome?
On 3.13.12 a customer purchased a vehicle from this dealer with a "clear" CarFax. BTW: this dealer puts a copy of the CarFax in the deal of every used vehicle sold at the time of sale. This is a screenshot of one of the pages... take care to notice the date(s):
On 6.6.2013 (over a year later), the customer comes into the dealership upset because they are now trying to sell the vehicle and the CarFax shows a "total loss". Screenshot:
Notice that this "data" was not reported until 2.25.2013 (after the customer purchased the vehicle). Don't want to make the story too long... but apparently the insurance company is a non-reporting entity to CarFax, and CarFax was only recently able to obtain claim information about this company, and not from the company directly - but through a 3rd party source. And, on top of that the vehicle was not a total loss (does not have a branded title) and was actually some hail damage repair.
Dealer has now shared all the information with CarFax, and CarFax has now updated the information (without admitting fault). Screenshot from 6.25.2013:
Too late, the damage is done. The customer is upset. And, in today's online/digital world, reviews and reputation, with something like this you really don't want to make a customer upset. And, if we really think about it, we would all feel the same way.... would we ever believe anything from CarFax or the dealer again? The customer is serving in the military at a local Air Force base. Could see the news headlines now -- "Local Dealer Sells False Promises to Military Vet". So, the dealer decided to make it right and buy the vehicle back. Don't have the exact number yet, but this will probably cost $10k+
So you would think CarFax would want to help the dealer, that pays $4500/month, with the loss that the dealer has. Nope.... zero/ziltch/nada. Their statement (paraphrase) was "Unless the title is branded, our guarantee doesn't apply. We are a tool, and the customer is taking the ultimate risk when they buy the car, let them take you to court."
To make things even worse, this is the 3rd vehicle that has had this type of situation happen in the last few months for this dealer.
Has this happened to anyone else? How does your dealership handle it? Have you tried to get CarFax involved? What has been your outcome?
