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The Impact of CARFAX On the Value of Your Vehicle

Diminished Value in Ft. Lauderdale

What is CARFAX?

CARFAX is a fast growing company that provides history reports for  vehicles. Today, more and more people are relying on CARFAX reports when buying a vehicle. For about $39 or less, you can order a CARFAX vehicle history report. You simply enter a vehicle’s VIN number and then you are provided a detailed history report for that vehicle. This report will tell you important things about a vehicle, such as whether or not the vehicle has been involved in any accidents, whether it has sustained any structural, flood or fire damage and the vehicle’s ownership history. CARFAX obtains this information from various sources, including insurance companies, law enforcement agencies, body shops and repair facilities, motor vehicle bureaus, auto auctions and car dealers. So if you were in an accident and the police arrived at the scene of your accident, or your vehicle was fixed at a body shop or you reported the accident to your insurance company, the chances are that your accident will show up on a CARFAX report.

CARFAX and Your Vehicle’s Value

If your vehicle has been involved in an accident and this accident is appearing on a CARFAX report, you will have a difficult time selling your vehicle for a fair price. The chances are that any potential purchaser of your vehicle will find out about the accident because of the “dirty” CARFAX report. Once this happens, this buyer will not be willing to pay you full value and will expect a discount. Otherwise, they will simply look for a vehicle that has never been involved in an accident.

The same goes for any dealerships that may want to purchase your vehicle as a trade in. Many dealerships won’t even be interested in buying a vehicle that has been involved in a prior accident, since they will have a very difficult time reselling this vehicle and making any money on it. Most of the time, the dealership will be unable to resell the vehicle as “certified pre-owned”. For this reason, the dealership will either make you a low ball offer for your trade-in or they won’t be interested in buying it at all.

How To Collect Money for the Loss of Value to Your Vehicle?

If your vehicle has been damaged in an accident, it will lose value by the mere fact that it now carries an accident history that will show up on a CARFAX report. The good news, however, is that if the accident was not your fault, you may be entitled to recover money from the at-fault party for the loss of value sustained to your vehicle. So although you will lose money on the sale of your vehicle, you have a chance to make up some of that loss by pursuing a diminished value claim.

Call The Collision Law Center today to find out how we can assist you in recovering money for the loss of value to your vehicle.

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