Accident and Damage Info is Critical to Pricing of a Vehicle
As the price of used cars increase, so has their value. This is why it is important for used car shoppers to obtain a vehicle history report. This report will give car shoppers information about the vehicle they plan to purchase, particularly the accident history. The report also helps dealers price a vehicle accurately.
CARFAX, which is regarded as a leader in the vehicle history reporting industry, estimates as many as 40% of vehicles or 110 million cars on U.S. roads today have some damage in their history. Data also shows one in four cars are sold within a year of a damage incident. The average impact on value for a vehicle with damage in its past is about $300 on the wholesale price and $400 on the retail price. Those numbers jump to an average of nearly $1,200 for wholesale and $1,500 for retail if the vehicle has sustained severe damage.
A CARFAX report can be a good place to start when buying a used vehicle because it provides preliminary information, such as whether a car has been in a wreck or whether any recalls have been addressed or remain open. The CARFAX Vehicle History Report helps car dealers find and assess damage. This helps ensure they are not could be overpaying hundreds or even thousands of dollars for a vehicle because it would directly affect their bottom line.
Many used car inventory websites provide links to free CARFAX Reports. If a link is unavailable, contact the dealer and ask them for the CARFAX Report.
It is important to note that while CARFAX and other vehicle reporting sites make efforts to keep their information current, Kelley Blue Book notes the reports will only show the latest event submitted to the reporting companies. A vehicle could be in a crash, be repaired, and sold before a record of the accident shows up in the databases of the companies. The report will not tell you the overall condition of the vehicle or its level of wear and tear, such as if the car’s tires are worn or the rotors need to be replaced. The information will not provide any insight regarding the driving habits of previous owners.
So even if you have the vehicle history report, it does not substitute for an inspection by an independent mechanic. Before you buy a vehicle, get an inspection to make sure the vehicle does not have any hidden damage.
When in the market for a used car, stop by Carousel Preowned. Carousel Preowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.