Enough is Enough!
Haven't you had it with all of these Data Pirates using our own customer information to defame us, lower our profits, alienate our customers... while at the same time they charge us through the nose to do us harm?
Among the worst of them in my opinion is CarFax. They even believe they have the right to price our cars and trades.... too low of course.While at the same time CarFax exploits negative stereotypes that we are crooks in every commercial the Little Car Fox Rats out the dishonest bumbling and inept idiot car sales person. They charge us to defame us.
Please read this article we just published in Wards Auto Magazine
"My latest article is out and it's hot.
Here are more than 250 Consumer Complaints and reviews about CarFax... look... http://www.consumeraffairs.com/automotive/carfax_inacc.html
We have manufacturers supporting these people and requiring we do business with them. Let's get mobilized and scream at our factory representatives, reprint this article for your dealers, do press releases, and generally alert your State Dealer Associations and 20-groups.
CarFax Gets Its Facts Wrong
If a consumer asks for the CarFax, tell them it's $39.00. Whoever told you it was free was lying.
Dealers tell me horror stories about CarFax experiences with customers. Those range from missing information to erroneous information.
I have a problem with data pirates who use dealer information against us, damage our reputation and cause consumer distrust.
To me, CarFax is high on that list. Let’s look at what this vehicle-history firm does.
It tells consumers its reports are free but charges dealers for them. So, if a dealer asks customers to pay for the report, they look at you like a criminal.
CarFax runs TV ads featuring deceitful car salesmen hiding the truth until the little Car Fox character shows up and sets the customer straight. This sets up CarFax as the Consumer Protector battling the Evil Car People.
The company uses dealer data to tell customers what to demand for their trade-in, based on what CarFax says is the value.
So, here we have another vendor setting prices and limiting dealer profits and charging dealers while it rummages through their customer information. We give them data and pay them to take it from us.
But beyond all that, CarFax is creating huge liability risks to both dealers and the auto makers.
“CarFax, lawsuit, settlement.” Enter those words in a Google search to see how many lawsuits have been filed against CarFax, from class actions to individual filings.
I Googled a number of other vendors using the same search words and couldn’t find anywhere near as many lawsuits and complaints. In one case, a court rejected a $500,000 award because the plaintiff attorneys said it was too low.
Most of the allegations center on inaccuracy of information. I can attest to that. A relative bought a car two years ago, and the dealer showed us the CarFax showing a clean history. Then, recently when he tried to trade it in, another dealer said CarFax indicated the airbags had been deployed in an accident before he purchased the car.
Yes, CarFax does have some sort of disclaimer somewhere on its form saying it’s sort of possible its information might be wrong.
Does that give it a license to insinuate that consumers should rely on its information when buying? Do some consumers then believe a dealer altered the CarFax report and falsified information if it turns out to be wrong? Now we have more animosity.
Dealers tell me horror stories about CarFax experiences with customers. Those range from missing information to erroneous information saying a car had a problem (thus devaluing it) when it didn’t have a problem at all.
I am amazed some auto makers and even some dealer associations have jumped into bed with this firm, either endorsing it or requiring dealers to offer CarFax history reports to consumers.
The first time a consumer sues your dealership over anything involving CarFax, point to the auto maker that required the vehicle history. That auto company should be a co-defendant.
CarFax has reached out to me several times asking me to meet with them. They know I talk about them in speeches and blogs. I recently had a trusted third party ask me to meet with CarFax.
I told that person there’s no reason for me to meet with these people. I think they are disreputable and they deliberately cause consumers to distrust dealers.
I do not believe their information is complete nor do I believe it’s fully accurate. They indirectly set unrealistic sales prices and interfere with the sales process. There’s little chance they could say anything to change my mind. And I’m not for sale.
If I were you, I would certainly examine my affiliation with CarFax. Then I would make doubly sure the company was not accessing my dealership management system to get information.
Then, I would tell consumers when they asked for the CarFax report that I don’t use it because the results can be erratic and unreliable. If the consumers insist, charge them for the report. It sure isn’t free.
Keep those calls and emails coming.
Jim Ziegler, president of Ziegler Supersystems, is a trainer, commentator and public speaker on dealership issues. He can be reached at zieglerss@aol.com.
Comments:
- Comment by James A. Ziegler 17 hours ago
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A dealer just communicated this to me...
Had a customer with a 2006 truck to trade this weekend. He bought it new and only used it to tow his boat. The truck has 11870 Miles on it. He serviced the vehicle once a year at the selling dealer. In two seperate service trips 3 years apart the dealer recorded the millage wrong once reporting 29k on the truck and then 48k. The customer went back to the dealer to have the problem fixed and they say its out if their hands. Carfax reports major mileage issues and this greatly effects the ACV of the trade. Carfax causes more problems for consumers than it protects them from. Seeing more and more of it.
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Comment by Yago De Artaza Paramo on Wednesday
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Jim,
You got to call this deaer and tell them to stop promoting the CarFox
https://www.youtube.com/watch?feature=player_embedded&v=lrkDH2nvTsY
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Comment by James A. Ziegler on November 20, 2012 at 6:48pm
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Just the executives , not all of the employees.
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You know, it's really funny. Last week Carfax announced to their employees that this Blog and this Movement was Dead. Little did they know we were only resting til the holidays and the election were over. Last year the TrueCar Blogs started on November 28th.
Fasten your chinstraps Carfax, the roller coaster is about to leave the station.
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Comment by Adam Thrasher on November 20, 2012 at 6:39pm
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Jim, maybe you should change you nickname to Robin Hood! :)
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Wow what a great idea. Tell you what Adam, I have at least four experts in my band of Merry Men and Women here on the Carfax situation room who are experts on Google and video. What an excellent idea. You are a genius. Did anyone ever tell you that? We'll put up a dozen Videos, some featuring me with that and other similar search terms. Thanks.
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Jim, you need to film a video and post it on YouTube. Title it Carfax Reports for Hurricane Sandy. I guarantee people are searching that phrase and your video will be on page one of google in a matter of minutes.
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These comments are already starting to hit Google and Consumers are reading them.
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Comment by JEREMY ALICANDRI on November 20, 2012 at 6:26pm
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A Nice Black Friday Surprise from Jim Ziegler! :-)
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Ha ha ... I have posted three things on their Facebook Fan Page and they've taken them down immediately. They are sitting there watching the page 24/7 ... and they are watching everything we write here too. BUT , they are not in the message boards we're on. AND I am going to drop 135,000 targeted emails later this week. Watch what happens next. Remember everyone keep it civil and nothing but the truth.
- Comment by JEREMY ALICANDRI on November 20, 2012 at 6:17pm
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Jim,
It looks like they aren't showing it. :-( However, it's interesting to see that they posted a copy of their "revised" Hurricane Sandy disclaimer on their Facebook page.
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I just put this logo up on that page too.
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LOL Jim. I'm not sure what I like better. Your graphic, or the "CARFAX for Dealers" Facebook page: http://www.facebook.com/CarfaxForDealers
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You're right Jason Manning. The trick is to educate the public just how bad CarFax is for consumers to trust them. How many reports have we heard about consumers getting burned because they trusted the CarFax? The say "Show me the CarFax." with the idea you can get instant vehicle history reports on used cars for sale and avoid costly hidden problems. Don't get stuck with a lemon, they say. When in fact CarFax has been the reason many people bought lemons that CarFax did not have the information until months later... too late and the consumer then finds out they lose thousands because they trusted the flawed CarFax reports - again. Vehicle History Report on used cars with supposedly accurate vehicle information coming from CarFax. AND it's NOT Free they charge dealers heavily without our permission to tell someone it's free.
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Comment by Jason Manning on November 20, 2012 at 1:31pm
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Just wondered when it became legal to conduct blanket advertising in an industry and commit a businesses funds/profits for advertising of your own product(s) as if you have blanket permission from the whole industry. If this is legal, please let me know. I will start my own empire today.
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Jason, I am not part of it but there are things in motion Carfax is going to have to deal with soon.
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Jim,
If Carfax is advertising Free Reports at any dealer, shouldn't those receiving dealers be recipients of a full refund from Carfax, of the report cost? If they don't provide that refund, isn't there an opening for a class action?
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Edwin, please call around and get your friends in Jersey Car Business to comment on this Blog please.
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Comment by Edwin Sanchez on November 20, 2012 at 8:02am
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Jim, I am out here in South Jersey bad enough we have to deal with the aftermath of Sandy but get ready for the Carfax mess that will make it even harder for dealers and consumers.
- Comment by James A. Ziegler on November 20, 2012 at 6:57am
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Welcome aboard Edwin Sanchez. That is one of the five reasons so many of us despise CarFax. They arrogantly assume they have the right to set our prices based on their allegedly frequently flawed reports. They sell their reports by promoting continuing negative stereotypes that we are crooks and liars. It is their marketing plan to cause consumers to further distrust car dealers. They cast a blemish on every car sold in states that were affected by the storm last month. Their reports often have major problems that show up late long after the consumer has bought the car with a "Clean History report" so, in effect they cost people substantial money because they relied on CarFax Reports in those cases. They hold dealers to contracts with narrow windows of escaping them. or, so I am told :) . That is why we've written this blog to educate dealers, manufacturers and car people that CarFax is pure evil, or at least that's my opinion of them. There's a lot of people commenting, and, so far, only one has had anything positive to say about CarFax... and we all know his hidden agenda.
We all have opinions and personal feelings and perceptions about CarFax... this blog is all about that dialogue.
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Sorry I'm late to the party. Carfax Price Calculator - like the industry needs another consumer pricing tool to confuse the matter more.
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Dealers are telling me that CarFax vehemently holds you to their contract and will not let them out. On top of that there is only a short window of time where you are eligible to cancel before it automatically renews. This is what I am being told. Is that accurate?
One dealer that wants to cancel is saying they intend to pursue the cancellation because the contract was signed by an employee who was not an officer of the company with no corporate resolution. It was evidently signed by a sales manager. Stay tuned on this one... if the dealer prevails, I have reason to believe a lot of other deals will pull the plug on the Fox.
By the way, somebody answer me this. If you have a contract with CarFax does it obligate you to give them DMS access and access to service and body shop records?? In other words can somebody with a contract with CarFax reports turn off their access to your computers? Does anyone have that answer?
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ARE YOU A CHILD MOLESTER? LOOK at What He Says About CarFax He says Carfax has branded dealers as "Child Molesters". That might by an analogy I'm sure. Click this Blog and read It. Are You a Child Molester?
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Okay Jeremy, that's a little softer. Maybe they are listening a little.
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FYI, on Friday, CARFAX updated the hurricane statement:Public Service Announcement:Hurricane Sandy may not have damaged this vehicle, but it was registered or located in acounty declared a major disaster area by FEMA a href="http://www.fema.gov/disasters"> http://www.fema.gov/disasters>;. As a reminder, please get this vehicle inspected prior to purchase.
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I believe the fact that Carfax hurts consumers and dealers alike is deliberate. In my own mind, I believe CarFax will stoop to the lowest level to get another $39.95 from consumers or dealers, no matter who their tactics hurt. I don't like these people. Of course it's all my opinion based on common human decency and the fact I was raised by parents with values... I might be wrong. What do you think?
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Debra,
Thanks for sharing these flood reports. I have no clue what to make of it. What do you think my shoppers are thinking? Grrr.......
Jeremy
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You're right Keith, Foxes need to be careful when they mess with Dawgs
