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Vehicle History Reports Spark Industry Debate By Jeffrey Bellant
LAS VEGAS - Concern over the type and quality of information included in vehicle history reports raised some spirited debate during the recent International Automotive Remarketers Alliance conference. Auction general manager Jim DesRochers and Hyundai Capital America’s Robert Wagner led two breakout sessions on the issue of vehicle history reports. Participants bristled at the use of the phrase “possible frame damage” or “possible odometer rollback” being included in vehicle history reports. Many participants said the word “possible” should be avoided since the problem either exists or it doesn’t. Tony Moorby, of Chattanooga Auto Auction, said providing as complete of a history as possible is the best solution, but he felt terms like “frame damage” are meaningless.
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Gerry Bayer, vice president of data for Carfax Inc., said he’ll take some of the feedback from the meeting and “seriously consider” suggestions about matters such as how to deal with issues like possible odometer rollbacks. “We are there to give you information to help you make better decisions,” Bayer said, “and to help you sell cars faster. “We are not here to stop the sale.” However, Bayer also said the company is ultimately creating the product for consumers. Ricky Beggs, managing editor of Black Book, said the consumer’s role in this makes the issue problematic. He said the biggest effect of the growing data stream in vehicle history reports is not on the wholesale side. “The biggest impact is on the retail side,” Beggs said, “when they see those reports.” He said a retail consumer doesn’t understand the differences in the various history reports and what the information means. Beggs said the wholesale industry understands that information, but everything in a report may have a different effect on the retail consumer. A report that mentions frame damage, but doesn’t distinguish between major structural damage and something lesser, can make a big difference. On the wholesale side, vehicle history reports can play a role in arbitration. Dan Heinrich of GM
Photo by Jeffrey Bellant HISTORY REPORT: Dave Sutton, Carfax’s national director of data acquisition, listens as Gerry Bayer, Carfax’s vice president of data, discusses the benefits and challenges of vehicle historyreports. The exchange occurred during a roundtable session at the International Automotive Remarketers Alliance conference in Las Vegas recently.
Financial said he might arbitrate based on a vehicle history report, but it would have to involve a vehicle visually inspected by one of his people. The group also brought up the problem of fixing a mistake on a vehicle history report. One consignor was concerned that a simple mistake writing down a car’s mileage led to one vehicle being branded as a rollback vehicle. Another said the time it takes for corrections to get made is a problem.
Several attendees agreed that disclosure is critical to the success of these reports. Bayer said making sure the buyer and seller have the same information levels the playing field. Dave Sutton, Carfax’s national director of data acquisition, said he understands the struggle to get vehicle history information correct because he once was a consignor himself. “We work with consignors,” he said. “We say to them, ‘share with us your auction announcements.’ We run them against our data-
base and tell them, ‘This is how it would appear on a vehicle history report, is that fair?’” Sutton said if there’s an issue with the language, he wants to make sure those announcements are consistent. He said vehicle history reports aren’t perfect - and may never be - but he’s open to discussions with any consignor to help make it right. Despite the disagreements, participants did agree that vehicle history reports will continue to be a huge part of the remarketing industry.
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• Salvage industry feels the effect of high used prices. – Page 8 • Remarketing group honors industry pioneer. – Page 17
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