How does CarFax Compensate shops?

[fdcg27]

Information has value. CF's selling of it in packaged reports of dubious value demonstrates this. How does this vendor induce indie shops, dealer shops, body shops and insurers to provide information? It what way does CF pay these various entities for access to the information upon which its business model depends?

 

[Pajero]

I can tell you how it benefits police departments! Respectfully, Pajero!

 

[fdcg27]

Originally Posted By: Pajero

I can tell you how it benefits police departments! Respectfully, Pajero!

Please share.

 

[SatinSilver]

I noticed a shop here that charges $20 for a CF report as part of their used car inspection service. Please see below. Thank you. http://gear-oh.com/services/

 

[fdcg27]

Originally Posted By: SatinSilver

I noticed a shop here that charges $20 for a CF report as part of their used car inspection service. Please see below. Thank you. http://gear-oh.com/services/

Sounds groovy, but why would anyone pay extra for a CF when paying a shop to do a pre-purchase inspection when the shop should be able to spot any potential show-stoppers or drastic offering price reducers? If you're willing to give a shop a hundred or two and the shop is competent, you'd have no need for any third party report of dubious accuracy.

 

[Nick1994]

I don't think shops send the information directly to CarFax. Shops likely use the same software for their estimating and transactions, which then gives CarFax information. That's my idea at least

 

[fdcg27]

Okay, then how do these shops give up their rights to commercial information and how does the hosting estimator software vendor get paid by CF?

 

[pair of Blazers]

I can tell you that CF info isn't always accurate. I ran my 91's vin and it showed 2 owners, I have been the sole owner. It also shows 3 MVA's there was only 1 and I was rear ended. most of their info comes from public record AFAIK

 

[Dave9]

Originally Posted By: fdcg27

Originally Posted By: SatinSilver

I noticed a shop here that charges $20 for a CF report as part of their used car inspection service. Please see below. Thank you. http://gear-oh.com/services/

Sounds groovy, but why would anyone pay extra for a CF when paying a shop to do a pre-purchase inspection when the shop should be able to spot any potential show-stoppers or drastic offering price reducers? If you're willing to give a shop a hundred or two and the shop is competent, you'd have no need for any third party report of dubious accuracy.

You might still want the CF report. Even if a shop finds an acceptable to no level of problems preventing you from purchase, you may still want to know if there is a negative entry in a carfax report because that can affect its resale value. In other words if the resale value loss you'd suffer is higher due to a negative CF report, you too should be paying a little less to buy it, unless it is a rare enough vehicle or you'd keep it forever so you Just Don't Care.

 

[Dave9]

Originally Posted By: fdcg27

Okay, then how do these shops give up their rights to commercial information and how does the hosting estimator software vendor get paid by CF?

Give up rights due to software EULAs which often contain statements like "share information with 3rd parties". The software developer would get paid by CF the same as they would for anything else. They set up a drop point in a public park, tell CF where the hidden cellphone is, then use the cellphone to tell them which trash can to drop the payment into, and NO COPS!

 

[Wolf359]

Originally Posted By: fdcg27

Originally Posted By: SatinSilver

I noticed a shop here that charges $20 for a CF report as part of their used car inspection service. Please see below. Thank you. http://gear-oh.com/services/

Sounds groovy, but why would anyone pay extra for a CF when paying a shop to do a pre-purchase inspection when the shop should be able to spot any potential show-stoppers or drastic offering price reducers? If you're willing to give a shop a hundred or two and the shop is competent, you'd have no need for any third party report of dubious accuracy.

Carfax does do a couple of things which is tell you the in service date of the car. That sorta lets you know when the manufacturer warranty expires. But carfax does miss things that Autocheck can pick up so I wouldn't use it as the only source. Last time I bought a car, I ran both. There used to be sites where you could get them at a discount, but I think the best deal now is to do a search on eBay for autocheck and you can find places selling both for $3-$6.

 

[HoosierJeeper]

Neither Autocheck or Carfax picked up on the accident my 05 Durango was in while I owned it, lost faith in both after that.

 

[3800Series]

People put away to much faith in these things, do they have a purpose? Yeah, I'm sure they do but it's not a tell all know all. I can point you down the road to a great body shop that only deals with significant damage. They sell some vehicles on the side for the added revenue but not a single thing that leaves their shop has bad report. These things are easy to bypass if one would want to.

 

[Nick1994]

Originally Posted By: fdcg27

Okay, then how do these shops give up their rights to commercial information and how does the hosting estimator software vendor get paid by CF?

Customers and Dealerships pay CarFax for the information, so CarFax makes money that way. Mechanics use Mitchell or AllData or whatever and CarFax probably pays Mitchell and AllData for the information. The only part mechanics would play in this is the transaction for the repairs completed. Check the box for new wipers, check the box for a transmission flush, check the box for a wheel alignment, the customer pays them and that's that.