We are thinking about switching from Carfax to AutoCheck. Please - anybody out there who has the experience with both? CarFax has more recognition so I'm hesitant about this change.
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Why the consideration for change?
What ever choice you go with; I recommend having either the Carfax or AutoCheck in a file folder along with the reconditioning and KBB for full disclosure and value building prior to negotiations.
A process of being pro active in disclosure and value building will increase credibility and gross.
Carfax just got too expensive for us
There's no question that Carfax has the recognition due to the strong marketing efforts. I don't think you're in any danger of losing a deal by using AutoCheck so as long as the process of disclosure is proactive.
Picture this: Consumer and sales returns from a demo and the consumer is ready to negotiate. At the time of the commitment and prior to showing figures the sales consultant presents a folder with AutoCheck, KBB and reconditioning for disclosure and value building.
This is a great process that will eliminate the consumer ever having to request such information.
Zuzana Friedt said:
Carfax just got too expensive for us
Great point Bobby!
As long as you have either AutoCheck OR Carfax, along with the reconditioning report and a KBB in a folder to give the customer a piece of mind, it doesn't matter that much.
Carfax HAS done a great job of marketing themselves as the authority.....
In my last official job as an eCommerce director we were opening up an up and coming store that now 2 years later sells 300 cars per month. It was against my will that we went with AutoCheck. What I learned from the experience is that AutoCheck and Carfax both bring the same value. I believe that AutoCheck is used in the auctions over Carfax. Carfax is a little more expensive but provides you with good marketing materials where AutoCheck does not. It happens too often that on the phone a customer asks about the Carfax on the car. I used to tell them, "we use AutoCheck which is a powerful tool used in the auctions and is exactly like Carfax if not better". It worked for me when I did a TO.
Carfax does an awesome job training dealers on best practices that AutoCheck does not do. Carfax spending millions on campaigns and is advertised on TV. This programs consumers to ask for the Carfax. Consumers know Carfax and rely on it but do not know AutoCheck. It will all depend on how you want to handle objections with Carfax and how picky your buyers are. It also depends on how you want to market it. At the end of the day, I cannot say that one is better then the other. I can only say that Carfax does the best job marketing and training. That is why you pay more.
Zuzana, we switched to Autocheck full time- Carfax was too expensive on a per pull basis and Autocheck was a flat fee. We keep Carfax on on hand if a customer demands to see it, but we put a Autocheck in every one of our cars. Personally, I think Carfax sold the dealers out when they began to furnish "Impact prices" on their forms. My thought is they should report the facts and let the dealers sell the cars--the two shouldnt be crossed.
Carfax has done a great job marketing themselves...like Pampers did with diapers and jello did with gellatin...most people just want the assurance of being transparent.
Hope this helps...Autocheck for us!! Keep your acct open with carfax just in case
LAWSUIT AGAINST CARFAX:
I just had an interesting conversation with Attorney, Lenny Bellavia who I have known for several years. His firm has represented dealers' interest in many high-profile lawsuits. Most notable they represented the Chrysler Dealers in the Bankruptcy.
He is preparing a Mass-Action Lawsuit against CarFax on behalf of the dealers and already has more than 100 dealers signed on. I am not involved... not yet anyway and this is the first I've heard of it and I am cheering because he has such a good track record for standing up when dealers are abused and for winning these cases.
Employees should certainly make your dealer aware of this. If I was a dealer myself, I'd be on board immediately. My opinions of CarFax are well known by what we expressed on this blog, in speeches and other appearances. I really hope dealers get behind this. I've posted his contact inf below and I am assured he reads email on the weekends.
LBellavia@Dealerlaw.com
Leonard A. Bellavia, Esq.
As a dealer group, we use both CarFax and AutoCheck via ProVision. We have a 'unlimited' package which works out to be cheaper per pull. We have had conflicts between CarFax and AutoCheck - one showing an accident the other is clean. We have also noticed that there can be a significant delay between an event and it actually showing up. Who has the time to go after a customer 6 month later when the standard answer is 'we didn't know it hit a blah blah'. We now have customers sign a copy of the CarFax, pulled on the day of the sale, so at least we have some answers if it ever becomes an issue. So, to answer your question, they are both flawed, but you have to have one.
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