Rebuilt Wrecks for Sale! Carfax Study Reveals Emerging Threat to Used Car Buyers

CENTREVILLE, Va.--Anyone shopping for a used car right now needs to be on high alert for rebuilt wrecks being sold in their area. A new study by Carfax shows that millions of cars severely damaged in major accidents have been rebuilt and are up for sale. Over the last five years, the number of salvaged cars revealed by Carfax Vehicle History Reports has increased nationwide by more than fifty percent. Cars purchased with Carfax Vehicle History Reports that do not contain DMV-reported incidents like salvage may be eligible to be bought back by Carfax.

“This problem is more widespread than we previously thought,” said Larry Gamache, communications director at Carfax. “Based on our data, the number one concern consumers should have right now, even above flood damage, is unknowingly buying a used car that was badly damaged in an accident. Buying a salvaged car may not be a bad investment, but you must make sure you’re aware of any prior damage and, more importantly, see that the proper repairs were made. Checking the information gathered in our database is the first step consumers should take to protect themselves from unwanted problems.”

Experts estimate that more than 5 million cars annually are deemed salvage after severe accidents. More than half of these cars are resold, many by sellers who intentionally hide their damaged past from unknowing consumers.

Some of the common problems associated with previously wrecked vehicles may include:

• Title washing. Title documents may be altered to remove a salvage brand and obtain a clear title from another state.
• Air bag fraud. Scam artists are known to replace deployed air bags with phony or non-working air bags to cut costs.
• Structure/frame damage. As little as 8mm can compromise a car’s structural integrity, which also may affect many of the car’s safety features.
• Odometer rollbacks. The odometer also may be rolled back to further inflate the perceived value of the vehicle.
• Car clipping. Some rebuilt wrecks are actually two different cars welded together.

Forecasters predict slower car sales this year, but still more than 40 million used cars are expected to be purchased.

“The used car market is a target-rich environment for scam artists,” added Gamache. “Many salvage vehicles are rebuilt properly and will run safely again. However, con men alter title documents and make cheap cosmetic repairs to others so they look as good as new on paper and in person. We urge anyone buying a used car to get a Carfax Vehicle History Report that qualifies for the Carfax Buyback Guarantee and have a mechanic thoroughly inspect the vehicle prior to purchase.”

Editor’s note: Larry is available for interviews to discuss the impact of the new study on used car shoppers and offer tips for avoiding the purchase of unsafe vehicles. To schedule an interview, please contact Christopher Basso at (703) 934-2664.

Salvage Vehicle Growth By State (2003 – 2007)

AL – 80%

DE – 65%

KS – 62%

MN – 72%

NH – 14%

OR – 10%

UT – 82%

AR – 4%

FL – 119%

KY – 29%

MO – 40%

NJ – 22%

PA – 26%

VA – 14%

AZ – 90%

GA – 54%

LA – 55%

MS – 39%

NM – 34%

RI – 9%

VT – (-7)%

CA – 37%

IA – 52%

MA – 20%

MT – 6%

NV – 220%

SC – 49%

WA – 44%

CO – 31%

ID – 76%

MD – 67%

NC – 55%

NY – 16%

SD – 72%

WI – 71%

CT – 25%

IL – 11%

ME – 36%

ND – 34%

OH – 59%

TN – 23%

WV – (-11)%

DC – 143%

IN – 45%

MI – 163%

NE – 30%

OK – 125%

TX – 141%

WY – 60%

*excludes Alaska and Hawaii

About Carfax (www.carfax.com)

Millions of used car buyers and sellers each year rely on Carfax, the most trusted provider of vehicle history information. Using the unique 17-character vehicle identification number (VIN) found on vehicle dashboards and title documents, Carfax instantly generates a detailed Vehicle History Report on any used car or light truck. Carfax Vehicle History Reports™ provide valuable information that helps used car buyers and sellers make better decisions. Free Carfax Vehicle History Reports are instantly available with vehicles listed in nearly every online marketplace by Carfax-subscribing dealers. For more information, ask your dealer or visit www.carfax.com.