Could You Detect the Rebuilt Wreck? The CARFAX Truth About Used Cars Challenge Put Consumers to the Test.

Business Editors

FAIRFAX, Va.--(BUSINESS WIRE)--July 29, 2003

According to a recent industry study, in today's slow economy, consumers are more likely to buy a used car over a new car to save money. But, can they spot a deal from a dud? If a recent "Truth About Used Cars Challenge" is any indication, most people can't.

The Challenge and The Truth About Used Cars

CARFAX(R), pioneer of the vehicle history report, challenged consumers at a shopping mall to examine four pristine-looking, used vehicles. Their objective was to select the safe, reliable vehicle they would put their money on. The catch? Three of the cars had serious accident histories, including one that had been completely totaled in a crash. The results were startling. Despite rigorous scrutiny, 90 percent of the shoppers taking the challenge couldn't pick out the good from the bad.

"It looks brand new," said Gary Outman of Woodbridge, Virginia, who was shocked to hear the truth about this used car. The vehicle was a rebuilt wreck--it was involved in a major crash. Outman expressed disbelief--he thought that the junked vehicle looked nearly identical to the good one. He also was amazed to learn that some scammers sell these cars as clean, safe vehicles.

"I thought you were supposed to disclose any vehicle that had been in any kind of accident," he said. "They're dangerous to drive--they're not safe."

Lea Gilpin, an auto expert with American Automobile Association (AAA) wasn't as surprised. Gilpin recommends that consumers find out as much as they can about any used car before they buy.

"A car that appears to look new and drive new may still have hidden damage," he said.

The consumers taking the Truth About Used Cars Challenge were just playing a game, but millions of Americans in the market for a quality used car aren't so lucky. Unscrupulous sellers rebuild wrecks, dry out and clean water-damaged cars, and roll back odometers so that the vehicles look fine to the average buyer. When they fail to disclose these questionable pasts, it is the buyers who lose.

Avoiding the Lie

What can consumers do to protect themselves? Experts say there are measures consumers can take to help guarantee they get a safe, reliable car.

"If you do three things, you'll get a great used car," explained Scott Fredericks, CARFAX Vice President. "Examine it carefully and take it for a thorough test drive, take it to a mechanic or body shop and have it inspected, and check out the vehicle's history."

Fredericks recommends asking the seller detailed questions as well as requesting repair and maintenance records. Also, to learn more about a vehicle's past, consumers can use the Internet to obtain a comprehensive vehicle history report before they buy. A detailed CARFAX Vehicle History Report, available on www.carfax.com, can reveal accident and flood damage, a lemon history, odometer rollbacks, and even number of vehicle owners.

Another way consumers can protect themselves is to go to a licensed dealer who adheres to the Federal Trade Commission's "Used Car Rule" and offers guarantees and/or warranties. Reputable dealers, such as Andy Walker at Ourisman Toyota in Fairfax, Virginia, use CARFAX Reports and offer them to their customers at no cost.

"The main question a customer has when buying a used car is whether or not the car has been in an accident," said Walker. "You're proving to a customer--whether they ask for it or not--that you're selling them a car that's a clean, straight car," said Walker.

Buying a used car will unquestionably save money, but consumers need to do more than kick the tires. Finding out the truth about that used car can save not only money but headaches -- and possibly lives -- down the road.

ABOUT CARFAX

Since 1984, CARFAX has been helping people uncover the truth about used cars. The CARFAX Vehicle History Report - available through www.carfax.com and through car dealers - provides an instant background check on any used car. Vehicle History Reports help consumers and dealers avoid used cars with costly hidden problems, including major accident and salvage history, odometer fraud, flood damage and more. CARFAX takes its job of providing the truth about used cars so seriously it backs every Vehicle History Report with a $5,000 CARFAX Certified History Guarantee. Based in Fairfax, Virginia, CARFAX is a wholly owned subsidiary of R.L. Polk & Company.

Editor's Note: CARFAX has a corresponding video news release available. Media can contact Leigh-Anne Dennison at [e-mail] or 703/934-2664 x 186 for a beta copy.