LAS VEGAS, Feb. 15, 2020 /PRNewswire/ -- Accident history is the number one thing used car shoppers look for in a vehicle's history, and with good reason: CARFAX 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 of an accident or damage occurring. When a dealership is acquiring vehicles, 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 some damage. The average impact of a damage event on wholesale and retail value is about $500, but that average impact on value jumps to close to $2,100 for a vehicle with severe damage in its history. If dealers don't know whether a vehicle has sustained damage, they could be overpaying by hundreds, if not thousands, of dollars – directly affecting their bottom line.
"The accident information that CARFAX provides is very important from a standpoint of determining whether or not that vehicle is something the dealership wants to represent," said Don Hamrick, President, Nevada Operations, Chapman Automotive Group. "If the impact has been very minor, the repair was done properly, and the valuation is appropriate, then we can use that information to make a good acquisition."
Not all accidents and damage are created equal. Dealers can use the CARFAX Vehicle History Report to see if there's damage reported to CARFAX, and also to help the dealer determine the severity by digging a little deeper into the damage history.
"CARFAX does a great job of giving you severity information, impact information, probably the most information I've ever seen in the history of doing business," said Salvatore Ferraro, Controller, Honda of Tenafly. "And it tells you what happened to the car in a very clear, concise way. Whether we're buying or selling, it's all about information."
A CARFAX Vehicle History Report not only shows dealers accidents and damage that have been reported to CARFAX, but many reports detail where the impact was on the vehicle and how severe the damage was. This tool makes it easier for dealerships to find and assess damage, and make sure they're getting the best inventory at acquisition at the right price. In addition, when consumers come in to buy a car, this tool is another way to boost the dealership's transparency during the sales process and increase trust in the dealership.
About CARFAX 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, CARFAX Car Care, 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 nationally recognized as a 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.