First off, I'm not picking on CarFax. There are lots of other similar vehicle data providers that promise to provide you with a complete vehicle history report on that used, or sometimes new, vehicle you're thinking of buying. Unfortunately, all have the same Achilles heel, in that the information you receive might be so incomplete, that you can get a wrecked, or salvaged vehicle, and never know it. Even the National Motor Vehicle Title Information System won't have the information you request! And it's run by the Federal Government, but the system is still full of the same holes! Even Consumer Reports has indicated in a recent issue the problems with relying on these services.
Many fleets, including federal, state and municipal fleets as well as large privately owned fleets are what is known as self-insured. That means they pay all their own claims on their vehicles. Some file a bond with the states they do business in, others simply show they have the assets to pay any and all claims that result from the use of their vehicles. Others purchase only excess liability insurance, and have what is known as a SIR or Self Insured Retention. That means they retain the first dollar costs of a loss themselves, ranging anywhere from a hundred thousand dollars to millions, and then the insurance policy kicks in to pay anything above that amount.
However, the SIR does not include property damage to the fleet vehicles, only liability, so if a vehicle is in an accident, it gets reported to no one. Minor or repairable damage is covered by the fleet owner, often in their own, or contract, body shops. If the vehicle is severely damaged, has frame damage, or is totaled, it usually is sold as surplus, at auction or placed on bid with other vehicles on an "as is" basis. The purchaser signs an agreement that there is no warranty and the vehicle is purchased "where is, as is." The vehicle can be almost new, as far as miles are concerned. I've seen police vehicles with only a few hundred miles on the odometer totaled in an accident, sold to a bidder and repaired, then end up on eBay and the sellers say nothing about previous damage!
As for clear title, there is absolutely no guarantee a salvage title will be issued on the vehicle, as state laws vary so widely, a vehicle can have a clear title and still have been a total wreck. With a clear CarFax or other report!
Worse yet, pull a CarFax or other report and most times you'll find no mention of any Fleet Use, Governmental Use, or Damage of any kind. Because it's never reported. The report will show the correct information as far as the VIN and perhaps the mileage if the vehicle was required to pass smog at any time, or registration changes, if it was sold and re-registered. But, if it was almost new, and wrecked, you'll likely find nothing other than the description of the vehicle.
Every one of these reports depend upon someone providing truthful, factual reporting, so it's really possible that if you're looking at a vehicle from a private seller, a one-owner or perhaps a second owner vehicle, you actually can get a report that provides good information. But, if you're looking for a vehicle and you suspect something might be more than is contained in any report, simply walk away from the car. Because once you purchase it, you're the one with headaches. Remember that the "lemon laws" don't cover used vehicles, and the old phrase "caveat emptor" or "buyer beware" is more applicable today than ever. Lots of people want to get rid of their vehicles, especially with the down sliding economy, and you don't want to be stuck with a junker. Used vehicle values are down, and dealers don't usually give people anywhere near what their vehicle is worth at trade-in time; worse if they simply want to sell their car outright to a dealer or get out from under a car payment.
Take the vehicle to a mechanic of your choice and have it checked out. A few dollars spent up front beats hundreds or thousands spent later. A good mechanic knows what it takes to get a vehicle in tip-top shape and he'll give you the straight story. An example is a great deal on a car that needed 4 new tires. Sounds like a small item, right? Nope! The exotic tires cost about $400 each and were different sizes for the front and rear. That added almost two thousand dollars to the cost of the vehicle when you include tax, mounting, balancing, and the road hazard warranty (a must with these short-lived jewels!) So the deal wasn't so sweet after all, but the new owner didn't bother checking first.
Finally, if the deal seems too good to be true...it usually is. Like they say, "there ain't no such thing as a free lunch." It might seem free, but the string is there to reel you in. Happy car shopping!
For great information on used police cars, see the eBay guides by drcop2u.
(A hint: Dealers will usually give you $500 to $1000 "back of book" for your used vehicle if it's in excellent condition. That means if you take the Trade In Value and deduct that much from it, you can get a rough idea of what to expect on a trade-in. But remember, dealers use many different books; Kelly Blue Book, NADA Book and even one called the Black Book (?) And for an unpopular color, make or model, the "back of book" deduction could be more. )
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