Opinion Survey: Impact of an Accident on CARFAX

DGS49

Diamond Member
Apr 12, 2012
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Pittsburgh
I bought my Ridgeline last year (2014). It's a 2007, and the CARFAX showed an accident in 2009. The only detail that was provided was that the right front of the car was damaged and repaired. The car has subsequently passed several state inspections with no issues.

In fact the CARFAX itself now says that the vehicle should be worth a thousand more than "Dealer Retail" due to added accessories and relatively low mileage.

Now a Honda dealer is telling me that he wouldn't put the car on his used car lot because "nobody" will buy a car with damage showing on the CARFAX, so he is offering me what he says the car will bring at auction (about $10,500). My inclination is to say, "Bullshit." A Honda dealer will put it on the lot at full retail PLUS, and if someone asks about the accident, knock $500 off the asking price. He actually has an '06 Ridgeline on his lot, same model (RTL) with higher miles, for $14,600. Not as nice as mine.

Ignoring for a moment the fact that all car dealers are liars, cheats, and thieves, Is this consistent with YOUR experience: That a reputable new car dealer will not even offer for sale a car with a "damaged" CARFAX?

My bottom line is this: I will offer him a cash difference that I think is appropriate (knocking off $500 of my trade for the accident report), and if he doesn't like it, just walk away.
 
I bought my Ridgeline last year (2014). It's a 2007, and the CARFAX showed an accident in 2009. The only detail that was provided was that the right front of the car was damaged and repaired. The car has subsequently passed several state inspections with no issues.

In fact the CARFAX itself now says that the vehicle should be worth a thousand more than "Dealer Retail" due to added accessories and relatively low mileage.

Now a Honda dealer is telling me that he wouldn't put the car on his used car lot because "nobody" will buy a car with damage showing on the CARFAX, so he is offering me what he says the car will bring at auction (about $10,500). My inclination is to say, "Bullshit." A Honda dealer will put it on the lot at full retail PLUS, and if someone asks about the accident, knock $500 off the asking price. He actually has an '06 Ridgeline on his lot, same model (RTL) with higher miles, for $14,600. Not as nice as mine.

Ignoring for a moment the fact that all car dealers are liars, cheats, and thieves, Is this consistent with YOUR experience: That a reputable new car dealer will not even offer for sale a car with a "damaged" CARFAX?

My bottom line is this: I will offer him a cash difference that I think is appropriate (knocking off $500 of my trade for the accident report), and if he doesn't like it, just walk away.
$10,500 is about right. Dealers figure about a 1/3 mark-up on used vehicles, There's more profit than on a new vehicle.
 
I will buy a vehicle at wholesale minus reconditioning and deduct for accidents in proportion to the damage. That said, I will not buy a salvage titled vehicle. I do not buy vehicles at some set percentage below retail value. People almost always consider their vehicle to be in better condition than they actually are. Car valuation sources frequently vary greatly on the dollars assigned. I see $1000 to 4000 differences often.
 
Trading cars in under three years is a losing proposition. Depreciation, taxes and fees paid all factor in.
 
My question was specifically, what is the legitimate "penalty" for an old accident - fully repaired - on a CARFAX? I realize that some potential purchasers might have a hard-and-fast rule about buying a "blemished" car, but in fact there is no rational reason to downgrade a car because it was involved in a fender-bender five years ago. Particularly when it is in a state with annual safety inspections, all passed without issues.
 
It creates doubt in buyers minds none the less. There is no rule, it is a case-by-case basis. Identical make, model, trim and miles can still have different values. Some vehicles are just treated better than others.
 
My question was specifically, what is the legitimate "penalty" for an old accident - fully repaired - on a CARFAX? I realize that some potential purchasers might have a hard-and-fast rule about buying a "blemished" car, but in fact there is no rational reason to downgrade a car because it was involved in a fender-bender five years ago. Particularly when it is in a state with annual safety inspections, all passed without issues.

Much of that has to do with quality of both parts and of labor used to repair. Particularly in late model cars where cheap insurance companies insist on off brand replacements parts that are cheaper that OEM for a reason. Thus why would a rational person who has done their homework pay the same amount for a vehicle that has been in a fender bender as the same vehicle which has not been?
 
EXACTLY! And the question is, what is an appropriate "deduct" for this blemish in the history of the car? And keep in mind, it would often be possible to have that accident "dealt with" in a manner that would not show up on CARFAX.
 

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