CENTREVILLE, Va., Jan. 28, 2020 /PRNewswire/ -- Car buying season picks up in February as tax refunds start showing up, but you could end up overpaying by thousands of dollars on a used car - and putting your family's safety at risk - if you aren't careful.
Accident history is the No. 1 thing used car shoppers look for in a vehicle's history. CARFAX data estimates that as many as 40% of vehicles on the road have been in an accident or sustained damage; that's about 110 million cars. CARFAX data also shows one in four cars are sold within the first year after an accident or damage. If you're shopping for a used car, it's not always easy to spot the cars with damage and to know whether it was a ding - or a disaster.
Of all the vehicles for sale right now, about one in four have sustained damage. The average impact on retail price is about $500, but that average impact on value jumps to $2,100 for a vehicle with severe damage in its past. If you don't know if a vehicle has sustained damage, you could be overpaying by hundreds, if not thousands, of dollars. CARFAX has a free valuation tool, History-Based Value, that looks at vehicle specific information for pricing, and it includes accidents as one of the many factors.
It's important to remember not all accidents and damage are created equal. Shoppers looking for used cars need not turn up their noses simply because there's damage reported. In fact, smart shoppers can dig a little deeper and save themselves some money by investigating the severity of any damage.A CARFAX Vehicle History Report can not only show you accidents, but many will detail where the impact was and how severe the damage was. It's also a safety concern, because you want to make sure any repairs were made properly. In addition to a CARFAX report, we recommend you have an independent vehicle inspection. A trained mechanic can spot signs of repairs and also make sure they were done properly so you can keep you and your family safe on the road.
CARFAX, part of IHS Markit (NYSE: INFO), helps millions of people every day confidently shop, buy, own and sell used cars with innovative solutions powered by CARFAX vehicle history information. The expert in vehicle history since 1984, CARFAX provides exclusive services like CARFAX Used Car Listings, myCARFAX, CARFAX History-Based Value and the flagship CARFAX® Vehicle History Report™ to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is a nationally recognized top workplace by The Washington Post and Glassdoor.com. Shop, Buy, Own, Sell – Show me the CARFAX™. Based in London, IHS Markit is a world leader in critical information, analytics and solutions.