CARFAX / SGS Scam

[transio]

For those of you who don't know, CARFAX offers a pre-purchase vehicle inspection service, (EDIT: AN ON-SITE ISPECTION - NOT THE FREAKING REPORT) in which they supposedly do a "150 point inspection" and road test. Here are some details of the service.

The service is not actually performed by CARFAX - they outsource the inspection services to a company called SGS Automotive. This is important to take note of, because CARFAX doesn't take any responsibility or ownership of problems arising from SGS's services.

Well, about a month ago I was shopping for a car in Houston, TX, and I ordered a CARFAX inspection for a 2001 Audi TT (VIN# TRUWT28NX11003129). The inspection was performed Sept. 1st, 2006, and the summary report sent to me the following day.

The results of the inspection showed minor problems - mostly cosmetic - with a road test showing "no noticeable defects" all around. There was no evidence of an accident reported. Based upon the inspection, which CARFAX's website claims to be performed by an expert, I flew to Houston to purchase the vehicle on Sept. 5th, 2006.

When I arrived, I found the car to be in drastically different condition than was reported. Within 5 minutes of inspection I found that the car had, in fact, been in an accident. I then had the vehicle taken to a local mechanic, who visually inspected and road tested the car and found dozens of major problems with it.

The following is list of issues not reported by the SGS inspector:

EXTERIOR:

1. The front bumper is damaged - obviously from a front-end collision (considering the other damage to the frontal area). It must be replaced. (The inspector listed damage to the lip, screen, and grill areas of the bumper, but not the bumper itself).
2. The front lip (attached underneath the bumper) is actually GLUED ON to the car, presumably after a wreck. It is badly damaged, and its mounting points are broken. It must be replaced.
3. The front driver's side fender is visibly bent. It is wrinkled in one corner from being warped. It must be replaced.
4. The driver's side headlight is loose, and sits on the car crooked.
   Both headlights have 1" circles melted in the plastic housings by some kind of solvent. They must both be replaced.
5. The driver's side taillight housing is badly scratched. It must be replaced.
6. Ther driver's side door is chipped and scratched.
7. The frame around the front windshield has paint chips.
8. The passenger side fender has paint chips.
9. The passenger side front wheel has scuff marks.
10. The front fenders have spacing isues. They do not line up with the rest of the bodywork.
11. The rear fenders have spacing issues. They are pressed tightly together, and do not line up. They show evidence of repair, and possibly of frame damage.
12. This car has obviously been in an accident, and there are thousands of dollars of parts to replace. This is not "minor" as your "expert's" inspection states.

UNDER THE HOOD:

1. There are many aftermarket hoses.
2. The plastic cover for the brake fluid reservoir is broken in half (from an impact?)
3. The driver's side headlight was broken. It is attached to the car by metal brackets from a hardware store.
4. There is overspray near the right fender (evidence of repair).
5. There is a cold-air intake made from a gutter pipe for a house!
6. The hood does not close easily. It requires realignment, and may require replacement.

INTERIOR:

• The back seats are completely missing!
• There is a boost gauge installed in the dash, and it is showing no boost.

I didn't inspect the interior further.


TEST DRIVE:

1. The car idles very rough. It actually stalled during my test drive. It very obviously has mechanical problems!
2. The car has very weak acceleration.
3. The exhaust is very loud. It sounds like the vehicle has an exhaust leak.

UNDERNEATH:

1. The frame of the car is damaged. Specifically, there are large bends and scratches in the frame directly behind both front wheels. It appears as though the driver attempted to drive over a curb or steep elevation, and landed on the frame of the vehicle. The damage is significant, and probably irreparable.
2. There is oil leaking from the valve cover and the oil cooler. Both must be repaired.
3. The boost hose is completely detached. This explains the weak acceleration, rough idle, and 0 boost on the boost gauge.
4. The alignment bolts have been shifted nearly 1/2". This is evidence of frame misalignment.
5. There is no muffler. The exhaust is a straight pipe to the tailpipes. This explains why it sounds like an exhaust leak. It also explains why the service light is on.

TIRES:

1. The front and rear tires are from different manufacturers. None are Yokohama, as the report stated.

As you can see, this is an extensive list of problems. These were found in less than one hour of inspection. I didn't even complete an inspection of the interior of the car.

I detailed all of these problems to CARFAX, and they simply shrugged off responsibility and forwarded me to SGS, who claimed that their inspector's report was accurate, despite the fact that many of these problems are clearly seen in the inspector's own photos, and they refused to reimburse me for expenses I incurred as a result of their incompetence.

I suggest that anyone who's considering using this CARFAX / SGS service think twice - you'd do better to get a professional mechanic who knows what he's doing to inspect the vehicle for you.

[etlsport]

i hear ya.. my girlie recently bought a honda del sol and didnt bring it to me to look at first because the carfax(provided by the dealer) checked out 1 owner clean as a whistle.. when she got it home, i looked at the headlights and they looked a little different so i looked closer, touched the drivers side corner and the lens fell off of the housing!... then looked at the badly curb rashed rims, and noticed red paint on them, so i looked at the key hole for the trunk, theres bad overspray on that as well, various other small problems, i tracked down the one owner... turns out it was my moms neighbors sister (go figure!) talked to her and she had been in an accident that destroyed most of the drivers side, so the whole car had been repainted then sold once the work was done.. lucky for us the car runs great and the paint job is very well done minus the overspray

[transio]

etlsport,

I'm not talking about a CARFAX report, but an on-site inspection and road test that they sell for $100.

Steve

[LANINJA]

what a heart breaker...i believe carfax only has info if the former owner reports it to the insure company...


so carfax has a buy it back policy does it? i always wondered to what extent this covers...

[etlsport]

oh, sorry, didnt know they were two different things.. either way, i always kinda relied on carfax to confirm that i was getting a good car... got one more car to buy/oversee the buying of guess i wont put so much stock in the carfax now

[transio]

what a heart breaker...i believe carfax only has info if the former owner reports it to the insure company...

The CARFAX Inspection service is an on-site inspection. It is not related to their report service.

[WyrreJ]

oh, sorry, didnt know they were two different things.. either way, i always kinda relied on carfax to confirm that i was getting a good car... got one more car to buy/oversee the buying of guess i wont put so much stock in the carfax now

You can usually trust carfax if the report says the car has problems - hardly anyone tells likes that make the car look worse than it is. But you can't trust them if it says the car has no problems because people will often lie to make the car look better than it is.

[kpaske]

I would consider contacting the BBB and possibly small claims court about these folks, although I can't say I believe much would come of it. It's a shame that we don't have any better method of recourse when a business fails to provide the service that was promised, but unfortunately it seems to happen all the time. The BBB should have the power to revoke and or deny business licenses and your record should follow you no matter what state you apply in. Otherwise, what good are they?

[WyrreJ]

The BBB is entirely funded by "member" merchants. BBB members get different treatment than non-members - complaints against members expire after some number of months even with no satisfactory resolution and are completely wiped from the record, unresolved complaints against non-members do not expire.

As often as not, the BBB just uses complaints against non-members as a shakedown tactic to get the business to pay up and become a "member in good standing."

So in some ways they are a bit like carfax, if the BBB records indicate complaints against a company, chances are that the company is scummy. But if they indicate a clean record, it means nothing.

I learned all this about 15 years ago when I had a problem with a BBB "member in good standing" and just got the run around from the BBB. Somehow the BBB has managed a PR campaign on the level of deBeers, totally hoodwinking a large portion of the US population. Kind of impressive actually, if it weren't so scummy.

[transio]

WyrreJ,

That's why I use the Internet to propagate information... I posted this same thread at VWVortex, S2ki, and EliseTalk... It's reached several thousand people that way - more than the BBB ever would.... I may also post it at RipOffReport, but we'll see.

[Anita]

Once I filed a complaint with my state's Attorney General about a certain unscrupulous business. I really didnt expect anything to happen but was I wrong. It took several months but I came out of it vindicated, the business spent thousands of dollars unsuccessfully defending the complaint and had to pay a hefty fine on top.

[wolverinevx]

is a total joke, I bought a VX a few yearsa go , it also had a clean car fax ! But after I drove it home (800 miles) I gave my VX a bath and the whole drivers side door had been repainted and most of the rear body on drivers side as well. So carfax is only as good as a repair facility if they dont report it carfax will never list it.

[Chopper]

I'm puzzled by the thought process of the dude in Texas- why allow someone to travel from S. Florida to Houston, to do a prepurchase inspection on a misrepresented vehicle. Hoping for a dope? Hoping he doesn't beat your ***, then get back on his plane? Steve, did you get the deposit money back...or was it not an auction car? There are tons of used TTs around, try again. Wayne

[transio]

It was an auction car... from a shady used car dealer. I got the deposit back. I would never beat someone up, but I was seriously pissed at them for wasting my time, and I let them know that.

[Mikeys00vx]

I've always thought that there were too many ways for CARFAX to NOT have the correct information about a car. If I wreck my VX and take it to Jims Auto Body and pay out of pocket to fix it, CARFAX would never know. Although its probably the best service out there, I have always thought it was a racket.

Mikey