Title washing still a practice among unscrupulous sellers

Here at LotPro.com, we have always felt that a vehicle background check should be part of the used car buying process. In its most recent press release, Experian Automotive points out that the process of “washing” a title – that is, re-titling a vehicle in another state to circumvent reporting vehicle damage – is alive and well in 2008. Here is the press release:

SCHAUMBURG, Ill., Aug 25, 2008 – Nearly 1.3 million cars and trucks throughout the United States were designated as damaged by accidents or severe weather including thunderstorms, hail, tornadoes and flooding in the first half of 2008. According to AutoCheck vehicle history reports from Experian Automotive, more than 185,000 of these vehicles — over 15 percent — lost their damage designation, or brand, when they were re-titled in another state. While these brands did not carry over to the new titles, they can still be found on the vehicles’ AutoCheck vehicle history reports.

“Consumers need to arm themselves with as much information as possible when shopping for a used vehicle,” Waldron said. “An AutoCheck vehicle history report will show past title brands and designations of prior damage, providing used-vehicle shoppers with the peace-of-mind they need to know that the vehicle they are buying is reliable and, most importantly, safe.”

Consumers can obtain an AutoCheck vehicle history report by simply visiting www.autocheck.com .

The Bottom Line

If you’re in the market for a used car or truck, you should do a background check of the vehicle using a service such as AutoCheck. In addition, you should also have any used vehicle thoroughly inspected by an ASE Certified Master Mechanic, since this will let you know the condition of every vehicle system.

About Experian Automotive

Experian Automotive, a part of Experian, delivers information services to manufacturers, dealers, finance and insurance companies, and consumers. Experian(R) helps automotive clients increase customer loyalty, target and win new business, and make better lending and vehicle purchase decisions. Its National Vehicle Database, housing more than 500 million vehicles, along with Experian’s credit, consumer and business information assets, meets the industry’s growing demand for an integrated information source. Experian’s advanced decision support services help clients turn this information into improved business results. Experian technology supports several top automotive Web sites, including eBay Motors, CarsDirect.com , CarMax.com and NADAguides.com . For more information on Experian Automotive and its suite of services, visit our Web site at www.experianautomotive.com.

Can you really “Buy With Confidence”?

The inside first page of the brochure states that “CARFAX® Vehicle History Reports™ uncover the truth about used cars, providing information on: major accidents, mileage accuracy, number of owners, lemon/manufacturer buybacks, recalls/major repairs, safety & reliability”.

The brochure goes on to state that it is “information that you can trust” and that Carfax “maintains the nation’s largest, most comprehensive vehicle history database”. In addition, the information is compiled from “thousands of reliable sources”.  These sources include various state motor vehicle agencies, police accident reports, car auctions, service contract companies, safety organizations, rental car companies and reports from various emissions inspection stations.

What is not covered in these “thousands of sources”?

Here is the first issue that crops up. Nowhere in the brochure does Carfax mention accident reports originating from insurance companies. After all, if a tree falls on your car while it’s parked in your driveway, you aren’t going to report it to the police, but you are going to report it to your insurance company. I don’t know about you, but if a maple tree fell on my car, I would consider it a “major” accident. The problem is, insurance companies don’t report their information to Carfax. Without this information, the Carfax report remains clear.

Well then, what about the repair shop you take it to? Glad you asked. You see, not all repair shops report to Carfax, either. So now we have a vehicle that has been damaged and repaired. What about the “huge” database at Carfax? In many cases, there will be no evidence that any of this has transpired. You, my friend, still have a car with a clean vehicle history.

What about the famous Carfax “Buyback Guarantee”?

Just as the name “Carfax” has become synonymous with the term vehicle history report (also a trademark of Carfax), their buyback guarantee has become legend in the automobile business. After all, if they make a mistake, they’ll buy your car from you, right?

Not so fast. Their simple claim of “We miss it … We buy it!” has more than a few caveats. Even in the brochure, the guarantee states “you’re protected from buying a vehicle that a DMV has reported as having severe damage, mileage fraud or lemon history”. In other words, the guarantee only covers “branded” titles and titles with mileage that is notated as “not actual”. In case you’re wondering, a branded title is a title that is issued to a vehicle that is declared a total loss (such as a salvage title or scrap title), has been damaged by water (a flood title), or used for purposes other than a private vehicle (taxi, police).

Since this status has to be reported by a DMV that reports to Carfax, the only thing the guarantee covers is a mistake by Carfax in reading the DMV report. In fact, if you go to the Carfax web site and navigate to the legal disclaimer section, you can read the following information:

“YOU EXPRESSLY AGREE THAT USE OF THE SITE IS AT YOUR SOLE RISK. NEITHER CARFAX, ITS AFFILIATES, NOR ANY OF THEIR RESPECTIVE EMPLOYEES, AGENTS, THIRD PARTY CONTENT PROVIDERS, OR LICENSORS WARRANT THAT THE SITE WILL BE UNINTERRUPTED OR ERROR FREE; NOR DO THEY MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SITE, OR AS TO THE ACCURACY OR RELIABILITY OF ANY INFORMATION, SERVICE, OR MATERIALS PROVIDED THROUGH THE SITE.”

Doesn’t exactly make you feel all warm and fuzzy, does it?

Should you use Carfax as part of your buying decision?

If you are buying from a dealer and the dealer offers you a free Carfax report, by all means don’t turn it down. Although the information contained in the report may be incomplete, it may be helpful in forming a basis for your buying decision. But there are other things that you can do to finish filling in the rest of the car history puzzle.

Have the car inspected

Ask the dealer if you can have the car inspected and then take it to a certified mechanic – preferably one who is an ASE certified master mechanic. This service normally runs between $100 and $200, but consider that money well spent, as a car with hidden damage could cost you thousands of dollars in repair bills and lower resale value.

The Bottom Line, or what kind of dessert are you looking for?

While a Carfax report can certainly be used as a tool in making a buying decision, it’s only the first step in finding out if that used car you thinking of buying is a cherry or a lemon.

1.    2004 Acura TSX – Although the TSX replaced the Integra as the smallest Acura sedan, unlike the Civic-based Integra, the TSX shares the same platform as the European Accord – albeit with firmer suspension settings. The ’04 TSX is at the top of everybody’s list – from Consumer Reports to CNN.

2.    2005 Ford Escape Hybrid – If you really have to have an SUV, how about a compact one that will get over 30 mpg in the city and about 25 on the highway? The Escape does all this in a pleasing package with plenty of space on the inside and nice styling on the outside.

3.    2007 Honda Accord – The Accord’s “best” list appearances is the automotive equivalent of the movie Poltergeist – “they’re back!” And for good reason. Value for the dollar, high quality and great materials are three reasons the Accord is at the top of its class.

4.    2006 Honda CR-V – 2006 marked the last year of the second-generation CR-V. In addition to standard ABS, all 2006 CR-Vs came with side airbags, side curtain airbags, electronic brake distribution and vehicle stability assist.

5.    2004 Infiniti G35 Sedan – Didn’t we tell you it was going to get fun? Named one of Car and Driver’s ten best for 2004, the G35 shares its platform with the Nissan 350Z and it’s every bit as good as the Z, even going a step further with a real back seat and two extra doors. Throw in superb handling and terrific styling and you have the Japanese answer to the BMW 3 series.

6.    2006 Mazda Miata – Every used car list needs at least one fun ride and the MX-5 fits that to a “T”. Since its introduction in 1989, the Miata has been the perfect example of the “less is more” school of sports car design. If you live in the sunbelt and don’t play much golf, you might even consider driving one year ‘round.

7.    2007 Mercury Milan – Mercury division’s version of the Ford Fusion, the Milan is more formal both on the inside as well as the outside. Standard features include ABS, a full compliment of airbags as well as a 6 speed transmission that comes standard with the optional V-6.

8.    2007 Nissan Altima 4 cyl. – The 2007 Altima begins the 4th generation of this model. Completely redesigned and based on Nissan’s D platform architecture, the Altima borrows styling cues from its G35 cousin. Sporting such niceties as pushbutton start and Bluetooth connectivity, the new Altima has no fewer than nine (!) cupholders. A full compliment of airbags completes the package.

9.    2006 Subaru Forester – Car and Driver magazine rated the ’06 Forester one of their 5 best trucks for good reason. This Subaru is one of the most versatile small SUVs on the market. Solid and reliable, the Forester will reward you will city gas mileage in the low 20’s.

10.    2005 Toyota Prius – Everything we previously said about the 2004 Prius holds true for the 2005 version as well. Toyota owns the hybrid market in the U.S. and it’s easy to see why. With plenty of room and mpg in the 40’s, used Priuses are getting harder and harder to find.

1.    2004 Chrysler Crossfire -  This car isn’t very practical for most people, but for those of you looking for a solid platform (it’s based on the Mercedes-Benz SLK) and head-turning looks at an affordable price, the Crossfire might just be what you’re looking for.

2.    2006 Buick LaCrosse – Although styling is not LaCrosse’s strong suit, remember that it replaced the Century/Regal. Besides, a roomy interior gives this offering from the General a lot of bang for the buck.

3.    2007 Ford Fusion – If the 2006 version was a player in the 12K-14K range, the 2007 makes an equal statement for another 2 grand. With good looks both inside and out, put this one on your short list.

4.    2006 Honda Civic – This is beginning to sound like a broken record, but there is no way that we can keep the Civic off any 10 Best lists. The ’06 is also the first year of the 8th generation with stunning styling in both the interior as well as exterior. Once again, Honda raises the bar in the compact segment. You may also be able to snag the more mundane-looking  2005 Civic Hybrid for close to the same price as a regular ’06 Civic.

5.    2005 Honda Accord – The hits just keep on coming for Honda, and the Accord is at the top of the list. The Accord is the perennial favorite of just about every consumer and enthusiast magazine on the planet – from Car and Driver to Consumer Reports – with points for handling as well as quality.

6.    2007 Jeep Compass – More of a mini-SUV than a real Jeep, the Compass shares its architecture with, and is built alongside, the Dodge Caliber. At least the Compass looks like a Jeep while the Caliber is, to put it mildly, more of a challenge in the styling department.

7.    2006 Mazda MPV – Mazdas don’t seem to get any respect in the American market, except for the somewhat adorable Miata. In particular, the MPV is almost a ghost in the marketplace, overshadowed by the Odyssey-Sienna twins from Honda and Toyota. To be sure, the MPV can’t match either one when it comes to cargo space, but for city dwellers and those of us who are parallel-parking challenged, the MPV really fills the bill.

8.    2007 Mercury Grand Marquis – Who says size doesn’t matter? Certainly not the owners of the Crown Vic/Grand Marquis. A big trunk, a big back seat and, dare we say it, enough sheet metal between you and the bumpers to make accidents seem like they happened in another state.

9.    2005 Nissan Altima V-6 – If you’re tired of all the Accords and Camrys on the road, we suggest you test drive the Altima. A lower resale value than the twins means you can pick up a V-6 Altima for about the same price as 4-cylinder versions of the Honda or Toyota.

10.    2004 Toyota Prius – The second generation Prius can’t be mistaken for anything else. Toyota sure made the right move when they transformed the lump that was the first generation Prius into the darling of Hollywood. If this doesn’t announce to the world “I’m green”, nothing does. It doesn’t hurt that the Jetson-esque cabin is larger and the hatchback style gives this Goremobile almost 14.5 cubic feet of cargo volume.

1. 2004 Acura RSX – The lineal descendant of the original Acura Integra (and, in fact, called the Honda Integra in Japan and most of the rest of the world), the RSX/Integra has always been a Honda Civic on steroids, which is not a bad thing. Boasting Acura’s traditional stellar fit and finish, the RSX is limited by two doors, but makes up for this seeming oversight by offering the utility of a hatchback.

2. 2006 Ford Fusion – based on the same platform that spawned the Mazda 6, the Fusion is, in our humble opinion, the best looking sedan to be found in the Ford stable. The interior eschews the 60’s family room wood panel look found in most American sedans for muted black panels and a look inspired by Ford’s European designs.

3. 2005 Honda Civic – The 2004 Civic was on our previous list for the same reasons the 2005 Civic is on this one. All Civics are endowed with Honda’s quality and fit/finish DNA, which is the industry standard. The ’05 Civic gives up a bit in the fun to drive category versus the current and previous generations, but it’s still the target every other manufacturer aims for.

4. 2003 Honda Accord – Everything we just said about the Civic holds true for the Accord except for one important aspect – the 2003 was the first of the seventh generation Accords. As such, it is larger and much more stylish than the generation it replaced. Thanks to a 2” longer wheelbase and an upgraded 4-cylinder engine, the Accord again sets the benchmark for mid-sized sedans.

5. 2007 Honda Fit – Honda didn’t foresee higher gas prices in the U.S., it merely has been building some of the best small cars in the world. Although the Fit is one of the smallest cars available in America, it is similar in outside dimensions to the original Civic. While you won’t win the battle against a big SUV, the Fit comes standard with 6 airbags and an interior that can be configured 6 ways from Sunday.

6. 2006 Mazda Mazda3 – The Mazda3 is the enthusiast’s answer to the Civic (2005-yawn) and the Corolla (snore). The 3 comes with standard 4 wheel disc brakes and a sophisticated multi-link rear suspension derived from the European Ford Focus. Interior materials as well as fit and finish are world class. “Zoom-zoom”, baby.

7. 2006 Pontiac Vibe – Our previous list included the 2005 Vibe, and there’s no reason not to include the ’06 version here. With Toyota build quality and a better styled exterior than its Matrix cousin, the Vibe should be on everyone’s short list.

8. 2006 Scion Tc – It’s not that we hate the styling of most Toyotas, but, really, you couldn’t get much more conservative than the Corolla. Fortunately, you can get that same quality, along with a healthy dose of style, in the Scion Tc. While a bit on the smallish side for interior space, the Tc, like the RSX, is a hatch and makes up for it in versatility.

9. 2004 Subaru Forester – What made the ’03 Forester on our previous list goes for the 2004 Forester this time around. All-wheel drive gives it a leg up on just about everything else on this list.

10. 2006 Toyota Corolla – I know, I know. But the Corolla is a car you can recommend to anyone interested in a high-quality dependable car. For those of us who enjoy flinging our rides around, or for anyone interested in anything other than vapid style, the Corolla is something we can pass on. Still, its history speaks for itself.