|
by
Robert Hollenshead
May 23 2011 10:38AM
In the market today there are two major players, CarFax and AutoCheck.
CarFax is by far the brand that is recognized by the retail public due to tremendous commitment of marketing on their part. Massive advertising and very tricky, marginally untruthful facts, have proven to be very successful in building their brands.
They originally came to the market by targeting the dealer body and were scornfully rejected. They turned to a ferocious very costly retail public advertising campaign. Employing extremely catchy, while marginally deceptive, catch phrases has proven to be very effective. By any account it is brilliant marketing model that should be taught at Wharton School of Business. It has forced the dealer body to rounded profess validation of the product even while dealers know the report’s patent invalidity.
They entered a market that is void of competition with a product that is difficult to refute, regardless of the real facts and is above the fray in the sense that they have no skin. The product offers a near worthless guarantee that amounts to almost nothing when they give false information. In the game while being free to randomly diminish the value of others assets in a very drastic way. Minor to no damage that is often falsely reported has massive repercussions when selling an effected unit.
The biggest problem outside of completely fallacious diminished value amounts, that verge on scandalously inaccurate values, is the vast majority of information that is excluded from their reports. Their ads all lean heavily on the inference that they have all information about accidents. This has given rise to a class of dealers that specialize in buying cars with good Car Faxes that have been wrecked and nothing shows on their report. In both cases the result is dangerous and potentially costly misinformation to the consumer.
As any professional in the car business knows and will validate when it comes to the diminished value they suggest, once a car has been reported against a specific VIN, the real effect on value is multiples of their suggested amount and usually hurts the value thousands of dollars. It can actually be as much as $20,000 regardless of the specifics of the report.
In the case of AutoCheck it is a product that dealers or professionals rely on. It includes auction announced conditions and is handled by auto motive professionals. The problem with their product is the folks that own the product have not made a major attempt to compete in the retail market that is very costly to enter. The result, from this writer’s perspective it is a very interesting, in deed wide out market that can be improved in accuracy in depth of reporting and accurate diminished value based on the type of information reported and professional analysis of the data.
|