Complaint resolution service publishes case studies, recall information and consumer news.

I jumped on the DriverSide bandwagon early in their beta period and was patient while the company sorted out the normal bugs that exist when any company tests their site before officially going live.

Driverside.com offers service schedules for all your cars, recall alerts, message boards and now a free Ask A Mechanic feature.

Looking around the site on our knockabout Ford Fusion, I was thrilled ot see the new feature that lets anyone who registers for free ask an impartial mechanic about a car problem.

Cars, like houses, are one of the those things most consumers seem to wish they knew more about because they’re so integral to our lives yet have strange rules.  A free service that answers questions from anyone can only help consumers since the mechanics involved (who have bios on the site) aren’t getting a commssion from your local garage.

Even in beta, this site is worth registering for now.

Posted under Automotive

Industry experts estimate that as many as one out of 25 previously damaged vehicles may have non-functional air bags. Con men purposely replace deployed air bags with anything from packing peanuts to stolen units. This growing scam is threatening the lives of used car buyers everywhere. To help consumers protect themselves, Carfax now makes the air bag deployment information in its database available for free.

“No question, air bags are a lifesaver,” said Larry Gamache, Carfax’s Communications Director. “To best protect yourself, follow these two important steps: Use the free Carfax air bag check and always have your mechanic test the air bag system to ensure it’s functioning properly before you buy. Do not assume your car’s air bags will deploy when you need them, because most victims of this scam may never know until it’s too late.”

According to the National Highway Transportation Safety Administration, nearly 20,000 lives have been saved by air bags deploying in an accident. As the height of used car buying season quickly approaches, consumers need to be on the lookout for scams like air bag fraud that can threaten their safety.

“While we don’t know about every air bag deployment, we want consumers to have access to what we do know,” added Gamache. “We also encourage all of our customers who have information about a previous air bag deployment not currently in our database to tell us so we can further help consumers steer clear of this scam.”

Consumers can log on to www.carfax.com/airbag to access the free Carfax air bag check and can report air bag deployment information using the “Tell Us What You Know” link on all consumer-purchased Carfax Vehicle History Reports.

Posted under Automotive, Safety

Carfax has been named the vehicle history provider of choice by Cadillac and Hummer for the brands’ respective Certified Pre-Owned (CPO) programs. Cadillac and Hummer now require all their dealers to run a Carfax Vehicle History Report on any vehicle submitted for certification. Used car shoppers interested in purchasing a Certified Cadillac or Hummer will receive the full Carfax Vehicle History Report for free.

“A survey by BusinessWeek just found Cadillac’s customer service performance to be the best in the entire auto industry. This is another building block in our quest to offer an outstanding purchasing experience,” said Jim Taylor, Cadillac General Manager.

Both Cadillac and Hummer offer 6-year/100,000 mile warranties on all CPO vehicles, which also will come with the industry-leading Carfax Buyback Guarantee.

Posted under Automotive

Volkswagen and the National Highway Traffic Safety Administration are recalling nearly 800,000 vehicles, dating back to model year 1999, because the brake lights might not function properly. A similar recall occurred in Europe last year and brings the total number of vehicles recalled over one million.

The company said that dealers would repair the problem now, but it would be at least one month before notifications were sent to customers, prompting them to visit a dealership to have the car repaired.

Posted under Automotive, Recalls

A new study by Carfax shows that waves of flood damaged cars are washing up in areas all across the country. Over the last five years, the number of waterlogged wrecks revealed by Carfax Vehicle History Reports has doubled nationwide. Furthermore, massive increases have occurred in numerous states. Individual state results can be found in the table below.

“Our data shows a clear pattern of growth for those states within close proximity to the Gulf Coast or that have large populations and sprawling urban areas,” said Larry Gamache, communications director at Carfax. “Flooded cars are indeed on the move and consumers everywhere are at risk. However, using the information gathered in our database, and new resources like Carfax Xpert, used car shoppers can uncover some of the nasty secrets a car may be hiding.”

Water can fatally damage a car’s most important features – like the electrical and safety systems – causing airbags and antilock brakes to malfunction and effectively turning the car into a ticking time bomb. Under the Carfax Buyback Guarantee, cars purchased with Carfax Vehicle History Reports that do not contain DMV-reported incidents (salvage, flood damage, lemon, odometer problems) may be eligible to be bought back from Carfax.

With used car sales expected to top 44 million this year, consumers should be on high alert for signs of hidden damage and potential fraud.

“In the aftermath of Hurricane Katrina, an unprecedented effort was made by the auto industry to identify, process and report these vehicles, as well as warn consumers about the dangers of flooded cars,” added Gamache. “We are ever-vigilant in making sure our customers have the information they need to protect themselves. We urge anyone buying a used car to get a Carfax Vehicle History Report that qualifies for the Carfax Buyback Guarantee and have a mechanic thoroughly inspect the vehicle prior to purchase.”

Flood Damage Growth By State (2002 – 2006)

Posted under Automotive

Credit unions are becoming more aggressive in the indirect lending market, as credit aggregators are simplifying the process for dealers to finance auto loans through credit unions, according to the J.D. Power and Associates 2006 Consumer Financing Satisfaction Study.

Now in its 11th year, the study measures customer satisfaction with the new-vehicle financing process. Four factors are examined to determine customer satisfaction with automotive finance provider: provider offering, application/approval process, payment/billing process and customer contact experience.

The study finds that at a growing rate, credit unions are forming alliances with dealers to offer new-vehicle financing, representing nearly 10 percent of loans being issued in dealerships—up from nearly 7 percent in 2005 and 3 percent in 2004. Through the indirect lending channel, credit unions are providing more favorable rates, driven primarily by tax advantages gained from their non-profit status. They are also offering longer-term loans. These factors are particularly beneficial to consumers at a time of rising interest rates, as lower APRs and extended terms help to lower the cost of financing a vehicle.

“As the new-vehicle financing environment adjusts to increasing rates and compressed margins, credit unions are positioning themselves as strong competitors to the established captives, banks and independents, which is underscored by the fact that credit unions have historically provided excellent customer service through their very close, personal ties with their customers,” said David Lo, senior research manager of automotive finance at J.D. Power and Associates. “From the dealer perspective, credit unions are currently competing primarily on their rates and terms. Captive providers still have a significant advantage in other offering related areas such as a more competitive reserve and overall compensation per deal.”

Overall, finance provider satisfaction drops in 2006, primarily due to a broad-based shift in interest rates. Of particular note is the industry wide effect of the increasing Federal funds rate, which has caused all finance providers to increase their rates. The net effect of this increase is an industry wide decline in satisfaction.

Ford Credit ranks highest in the luxury lease segment for a second consecutive year, performing particularly well in provider offering. In the non-luxury lease segment, Ford Credit leads the rankings for a fifth consecutive year, receiving the highest ratings in provider offering and the application/approval process.

With strong performances in payment/billing and application/approval process, GMAC ranks highest in the luxury loan segment for a second consecutive year. GMAC also ranks highest in non-luxury loan satisfaction and receives the highest ratings from customers in three of the four factors that determine overall satisfaction: payment/billing, provider offering and application/approval process.

The study also finds that the use of electronic contracting (eContracting), which allows dealers to forego paper contracts by submitting an electronically signed document to capture customer signatures, has a positive impact on customer satisfaction. On average, customers whose contract was processed with eContracting technology are more likely to say they are “delighted” with their overall application/approval process when compared to customers who were processed with traditional documentation. In particular, the largest difference in satisfaction is in the ease of filling out paperwork.

“Currently, only 3 percent of customers report that their contract was processed using eContracting,” said Lo. “While the current penetration is very small, this proportion is likely to increase soon. In our 2006 Dealer Financing Study, we found that 75 percent of dealers who currently use eContracting expect the number of contracts processed with this technology to increase within the next 12 months.”

Posted under Automotive, Finance

The National Highway Traffic Safety Administration has launched an investigation of Fords and Mazdas from the 2001 through 2003 model years. There have been 8 fires reported in these vehicles, as well as two other incidents.

The vehicles being investigated are the Ford Escape and Mazda Tribute. Thus far, the Escape, rather than its Tribute twin, have had the major problems reported. The result of the investigation could result in a recall or be found to be isolated coincidences.

Posted under Automotive, Safety

Carfax has announced an expansion in the scope of police-reported accident data from the state of Hawaii available through Carfax Vehicle History Reports. Anyone shopping for a used car now has access to more information about a vehicle’s accident history to help determine the extent of damage. Buyers and sellers can then use this information to direct a mechanic inspection and confirm the vehicle was properly repaired.

“Accidents are the number one concern of used car buyers,” said Larry Gamache, communications director at Carfax. “Far too many people unknowingly purchase vehicles involved in prior accidents that have not been properly repaired or are at risk for scams like airbag fraud. Consumers now have a greater wealth of information available in Carfax Vehicle History Reports that can alert them to any potential problems. When combined with a trusted mechanic’s inspection, our customers can find a safe, reliable vehicle.”

Posted under Automotive

GE Commercial Finance Fleet Services today announced that they will be reporting damage information on their fleet vehicles to Carfax for inclusion on Carfax Vehicle History Reports. GE Commercial Finance Fleet Services maintains thousands of cars throughout North America. Now, individuals purchasing off lease GE Commercial Finance Fleet Services’ vehicles can use this data to better understand a vehicle’s history and help guide a mechanical inspection before buying.

“We’ve been working with Carfax for a few years now to report service information on our fleet vehicles,” said Paul Seger, vice president of asset remarketing for GE Commercial Finance Fleet Services. “Including information we have about vehicles involved in accidents was a natural next step. We encourage anyone buying a used car to use this information to make sure the vehicle has been properly repaired.”

Since 2004, GE Commercial Finance Fleet Services and Carfax have partnered to bring valuable information to used car buyers and sellers. Their partnership led to previous studies showing that disclosure of vehicle history information through Carfax Vehicle History Reports may substantially raise the resale value of wholesale units.

“Buyers of GE fleet vehicles in the wholesale market have just hit the trifecta,” said Larry Gamache, communications director at Carfax. “They now have access to GE’s service information, these new prior damage records and, the bonus, a significant number of these cars will be Carfax One Owner vehicles. They should command a premium in the wholesale market as they’ll have huge curb appeal to consumers in the retail market.”

Posted under Automotive

California Attorney General Bill Lockyer today filed a lawsuit against leading U.S. and Japanese auto manufacturers, alleging their vehicles’ emissions have contributed significantly to global warming, harmed the resources, infrastructure and environmental health of California, and cost the state millions of dollars to address current and future effects.

“Global warming is causing significant harm to California’s environment, economy, agriculture and public health. The impacts are already costing millions of dollars and the price tag is increasing,” said Lockyer. “Vehicle emissions are the single most rapidly growing source of the carbon emissions contributing to global warming, yet the federal government and automakers have refused to act. It is time to hold these companies responsible for their contribution to this crisis.”

Filed in U.S. District Court for the Northern District of California, the complaint names as defendants: Chrysler Motors Corporation, General Motors Corporation, Ford Motor Company, Toyota Motor North America, Inc., Honda North America, and Nissan North America. The lawsuit is the first of its kind to seek to hold manufacturers liable for the damages caused by greenhouse gases that their products emit. Lockyer filed the lawsuit on behalf of the People of the State of California.

The complaint alleges that under federal and state common law the automakers have created a public nuisance by producing “millions of vehicles that collectively emit massive quantities of carbon dioxide,” a greenhouse gas that traps atmospheric heat and causes global warming. Under the law, a “public nuisance” is an unreasonable interference with a public right, or an action that interferes with or causes harm to life, health or property. The complaint asks the court to hold the defendants liable for damages, including future harm, caused by their ongoing, substantial contribution to the public nuisance of global warming.

As stated in the complaint, the automakers produce vehicles that emit a combined 289 million metric tons of carbon dioxide in the United States each year. Those emissions, the complaint alleges, currently account for nearly 20 percent of the carbon dioxide emissions in the United States and more than 30 percent in California. The defendants rank “among the world’s largest contributors to global warming and the adverse impacts on California,” according to the complaint.

“Global warming has already injured California, it environment, its economy, and the health and well-being of its citizens,” the complaint alleges. “California is responding to the ongoing impacts and the inevitable additional future impacts of global warming. The State is spending millions of dollars on planning, monitoring, and infrastructure changes to address a large spectrum of current and anticipated impacts, including reduced snow pack, coastal and beach erosion, increased ozone pollution, sea water intrusion into Delta drinking supplies, response to impacts on wildlife, including endangered species and fish, wildfire risks, and the long-term need to monitor on-going and inevitable impacts. California has already begun to address the decline in the snow pack and earlier melting of the snow pack in order to avert water shortages and flooding in the future.” Dealing with global warming’s harmful effects, the complaint adds, “will almost certainly cost millions more.”

The AG’s office did not comment on the impact of the suit on consumer prices for those automobiles.

Posted under Automotive