AIM Mobile Inspections is out with an important reminder about the need for an independent inspection before purchasing a used car. Vehicle history reports like those issued from AutoCheck and CarFax are valuable tools but only one part of the used car buying process.
AIM, whose inspection process I have had demonstrated for me, said in a study of 255 vehicles it found 134 instances of accident damage that did not show up on a vehicle history report.
That seems like a startling number - and it is significant - but it doesn't mean vehicle history firms are wrong half the time. It demonstrates that there are lots of instances where people have accidents and don't report them (think parking lot fender benders) and then pay for the repairs without getting an insurance company involved.
Plus, there's just the routine failure of government bureaucracy at times to report the data in a timely manner. "Very often, cars that have been damaged don't show up" on a vehicle history report, says Rosemary Shahan, founder of Consumers for Auto Reliability and Safety (CARS). "It's not required that states give them (vehicle history report companies) the data in a timely way."
Savvy (i.e. dishonest) used car sellers are going to take advantage of the weaknesses in the system for their benefit. A seller who knows there is unreported damage on a used car will run a vehicle history report to show it has a clean bill of health.
I'll give AIM the chance to tell an interesting story. It doesn't demonstrate intended fraud but it does show how somebody could game the system.
Jeff Green of Long Beach, Calif., was driving his Infiniti coupe in October 2010 when it was hit from behind at a stoplight, forcing his car into the vehicle in front of him. Six weeks and $13,000 in repairs later, he thought the car looked pretty good, but had it inspected by AIM to see how well the repair work had been performed.
"Within 60 seconds the inspector said to me, 'Wow, you got hit pretty good,'" said Jeff. "I hadn't even mentioned an accident and he knew my car had been rammed by looking at the space between panels and replacement hinges - things I didn't notice."
Vehicle history reports on Jeff's Infiniti, obtained eight weeks after the car was rear-ended, had no information reported related to the accident. The AutoCheck report stated "Reported Accidents: 0," and "No frame/unibody damage record." The CarFax report came back with similar news: "No accident/damage reported to CarFax." Three months later, the reports showed no information regarding an accident involving the Infiniti.
AIM's inspector found otherwise, noting, "The vehicle was involved in a collision to the rear and has repair work to the front bumper," and also found misalignment between panels, overspray, clamp marks and a trunk that didn't close easily. All are telltale signs of accident repair work.
Again, this is not a condemnation of AutoCheck or CarFax. Both do important things but an independent auto inspection is key to peace of mind when buying a used car. Plus, it's in keeping with what a police officer told me once within minutes of an accident (in the pre-CarFax days): Sell this car - it will never be the same.
