Carfax Adds More Data To Vehicle History Reports

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

This post was written by George Bounacos on September 25, 2006

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Consumer Groups Call For Access To Illinois Accident Data

A growing coalition of community and business groups and elected officials announced today the launch of the Illinois Used Car Buyers Right-to-Know Campaign, a major effort to protect Illinois used car buyers. Each year, more than 700,000 vehicles are involved in police-reported accidents on Illinois roads. The Illinois Department of Transportation (IDOT) collects an electronic record of these accidents and the damage the vehicles involved sustain, but this information is never disclosed to Illinois consumers.

The Used Car Buyers Right-to-Know Bill (SB 1839), sponsored by Senator James Meeks (D-15) and Senator Kirk Dillard (R-24), would require the IDOT to make police-reported auto accident history records available to consumers,without releasing personal information.

“People have a right to know all the facts before they buy a used car and this bill is an important step in providing that information,” said Attorney General Lisa Madigan. “We know that accidents can affect how a car runs and its safety. Access to the information provided by this bill will help consumers to make decisions based on facts, not hidden histories.” Joining Attorney General Madigan in support of the initiative are Secretary of State Jesse White and a bi-partisan group of state legislators.

“We all benefit from being informed. Undisclosed accidents put everyone at risk,” said Senator Meeks. “There is no reason Illinois should continue to shy away from this basic public safety issue. It’s really very simple. Let’s keep our families safe and pass this bill.”

Valuable information comes from police reports that record the damage from vehicle accidents. The reports may indicate, for example, if the airbag deployed, if the vehicle hit a deer, or if it was towed or driven away among other observations collected at the scene.

Armed with this information, along with mechanical inspections, consumers can protect themselves and make better decisions about the cars they purchase,something community leaders say is critical to people’s self-sufficiency.

“When low-income car buyers get ripped off, it has serious economic impact on their families,” said Nina Harris, President and CEO of the Springfield Urban League. “We have an opportunity to help prevent that from happening with this bill. It only makes sense that we should be able to find out if the carwe have saved long and hard for has hidden damage that could end up hurtingus. After all, information is power.”

Illinois voters overwhelmingly support the proposed bill. A recent statewide poll shows that more than 9 out of 10 Illinois voters believe used car buyers should have access to state reports on whether or not a car has been in an accident.

“Just as consumers wouldn’t want to unknowingly buy a flood damaged car from Hurricane Katrina, consumers need to know the accident history of used cars,” said Senator Dillard. “Often people find out too late what really happened in a car’s past. Dealers get taken at trade-in; unscrupulous sellers rip off consumers. It’s time for used car buyers and sellers to have access to police-reported accident information for their own peace of mind.

Added Juan Rangel, CEO of United Neighborhood Organization (UNO), “We shouldn’t be asked to settle for less when our family’s safety is at stake. After all, we depend on our cars to get us to work, to get our kids to school,and to run errands on a daily basis. There is no reason Illinois should continue to shy away from this basic safety issue.”

Posted under Automotive

This post was written by George Bounacos on January 12, 2006

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Your Donated Car Is Only A $500 Deduction Without Proof

Forget what Kelley Blue Book says. Forget how much you paid or whether you’ve just overhauled the engine. If you donate a car to charity, the U.S. Internal Revenue Service (IRS) wants to remind you that you can only claim a $500 deduction.

The only exception to this rule is if the charity sells the car for more than $500. In tax-speak, that translates to deductions are “limited to the gross proceeds from the sale of the vehicle by the charity. The charity must provide a written acknowledgment within 30 days after the vehicle is sold that notifies the taxpayer of the amount of the gross sales proceeds.”

That is the big news the agency reminded taxpayers of on December 22 as the year wrapped up, and taxpayers began opening their new copies of TurboTax. The IRS also cautioned that all deductions require a “charity’s written acknowledgment”. In the real world, we call those receipts.

So that 1984 Nissan Stanza in the shed behind the garage? You can deduct what the charity sells the car for (yes, they’re required to let you know). As with any tax issue, there are some exceptions, notably here if the vehicle is sold for less for charitable purposes, so always check with your tax preparer or the IRS itself before basing your return on blog entries and other information you’ve stumbled upon in the media or on the web.

Posted under Automotive, Finance

This post was written by George Bounacos on December 26, 2005

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Consumer Group Attacks Government’s Auto Roof Standards

A proposed roof crush rule – the first change in vehicle roof strength standards in more than three decades – is so grossly inadequate that 70 percent of existing vehicles already meet it. The proposed change would require vehicle roofs to be only marginally stronger than they are today.

The current standard requires a vehicle roof to withstand the force of 1.5 times the vehicle’s weight. Because of certain provisions in the proposed standard, the agency will effectively require a roof to withstand just 1.64 times the vehicle weight – a paltry improvement.

Rollover crashes kill 10,000 people each year, accounting for one-third of all occupant deaths in vehicle crashes. Many deaths and injuries that stem from rollover crashes occur when the roofs of vehicles crush in, killing or paralyzing the occupants of the vehicles. In many cases when the roof crushes, the windows of the vehicle crush or blow out, seat belt and side air bag systems fail, and doors spring open, causing people to be ejected and killed.

The current roof crush rule was issued in 1971. The agency originally called for testing both sides of the roof, but General Motors Corporation (GM) argued that testing both sides of the roof was unnecessary. Years later, it was revealed in litigation that GM had used NHTSA’s proposed two-sided test on six of its production model vehicles and that only one vehicle had passed. GM withheld its testing results from the agency but nevertheless argued for the one-sided test. NHTSA’s final rule called for testing just one side of the roof.

In 2000, after news of the Ford Explorer-Firestone tire rollover tragedies broke, NHTSA began mulling over a strengthening of the roof crush rule. But its proposed changes, released five years later, would do little to change the status quo. Even NHTSA says its proposed rule will save only 13 to 44 additional lives annually, an admission that the proposal is de minimus. Since 2000, 50,000 Americans have died in rollover crashes, making this one of the largest single causes of deaths in the new century. Today is the deadline NHTSA set to receive comments on its proposed rule. A copy of Public Citizen’s comments is available here.

“NHTSA is squandering an unprecedented opportunity to save lives by reducing rollover deaths,” said Public Citizen President Joan Claybrook. “This is an egregious betrayal of the public trust. It is technologically feasible and cost-effective to make vehicle roofs much, much stronger. The government has an obligation to require auto manufacturers to do so. It is unconscionable that the agency has punted.”

Internal auto industry documents in NHTSA’s possession show that auto manufacturers know the dynamics of rollover crashes and understand how, using feasible, light-weight and cost-effective technology, to make much stronger roofs. NHTSA should make these Volvo XC-90 documents public because they show how one small company led the way in rollover safety, Public Citizen said.

The proposed rule also contains a “pre-emption” provision that would prohibit people from suing manufacturers for injuries sustained from crushed roofs if the vehicles meet the government standard. This would effectively shut the courthouse doors on consumers and would remove incentives for manufacturers to make safe vehicles when minimal government standards are insufficient or outdated, or are not well enforced, Public Citizen argued. It also would burden the taxpayers with the costs of these crashes.

At a press conference today, the Rev. Lawrence Harris, a Pittsgrove, N.J., resident who is now a quadriplegic as a result of a rollover crash, denounced the new rule. The vehicle he was in when the 1997 crash occurred, a 1987 Ford Econoline van, would have passed the proposed new test. His injuries show how inadequate the proposed rule is.

“I have to live with the consequences of a government roof strength standard that is way too low,” Harris said. “It’s time for citizens like us to be heard and for the government to enact a law that forces auto manufacturers to build vehicles that are safer, stronger and will increase the chances of people walking away from an accident.”

NHTSA is proposing to increase the force that a vehicle’s roof must withstand in tests to 2.5 times the vehicle’s unloaded weight, up from the current 1.5 times. The increase is misleading, however, because NHTSA also has proposed changing the test requirements to allow greater roof intrusion. According to an analysis by Steve Batzer, a professional engineer and director of the Engineering Institute in Farmington, Ark., the average required increase in roof strength under the proposed rule amounts to requiring a roof to withstand just 1.64 times the vehicle weight, as measured by the current standard.

“This proposed standard does not meet the public’s expectation that solid science is used as the basis of new safety standards,” Batzer said. “Further, it does not ensure that the solid majority of average-height, belted occupants can be protected from significant roof crush in the event of a high-speed rollover.”

The agency contends that strengthening roofs will add weight to vehicles and increase the propensity for rollover, but this is a canard, Claybrook said. The agency has been unable to document that an increase in vehicle weight would increase the risk of rollovers. Further, manufacturers can strengthen roofs without adding weight, because many light-weight materials exist.

Other key problems with the proposed roof crush rule include:

It largely ignores the fact that a strong roof is crucial to preventing people from being ejected from vehicles that roll over. Including the benefits of preventing ejection would justify a much more stringent standard on a cost-benefit basis.
The new test does not apply force to the roof in a manner that ensures injuries would be prevented in a real-world crash. It continues to use a static test in which weight is pressed on one side of the roof. Instead, NHTSA should require a dynamic “dolly roll” test, in which vehicles are rolled off a fast-moving dolly, to simulate the injuries that occur in real-world crashes. This is the best way to test what happens in rollover crashes to a vehicle’s roof, windows, belt system, side air bags and occupants. The dolly test is already routinely used by auto manufacturers and is spelled out in FMVSS 208 (air bags, belts) as a voluntary standard since the 1970s.

The proposal fails to comply with an August 2005 congressional mandate for safety upgrades to both the driver and passenger sides that requires both sides of the roof be tested. Instead NHTSA calls for just one side to be tested. This measures what happens only in the first two quarter turns of a rollover. But the most serious injuries occur in the third and subsequent quarter turns.

The agency proposal relies on windshields to support roofs in rollovers, but in real world rollover crashes, windshields shatter, drastically reducing roof strength.

The cost-benefit analysis is riddled with errors.

The proposal lacks a scientific basis. The agency looks at vehicles after rollover crashes, analyzing roof intrusion, rather than analyzing what happens during a crash. Roofs are elastic and spring back, so analyzing post-crash intrusion is irrelevant to understanding how occupants are injured.

Posted under Automotive, Safety

This post was written by George Bounacos on November 21, 2005

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U.S. Wants Tougher Vehicle Roof Standards

The National Highway Traffic Safety Administration (NHTSA) has proposed improvements to its current roof crush standard.

The proposed new standard would also extend roof strength requirements to all vehicles weighing up to 10,000 pounds. The current standard only applies to vehicles up to 6,000 pounds. Improved roof strength is one aspect of a comprehensive NHTSA plan to reduce deaths and injuries among belted occupants in rollover crashes.

NHTSA also is seeking comment on other aspects of its rollover protection strategy, including the possible use of improved safety belt technology to better hold a belted occupant in place during a rollover crash.

“It will take a comprehensive strategy to reduce the staggering number of rollover deaths on the nation’s highways”, said NHTSA Administrator Jeffrey Runge, M.D. “Improving roof strength is an integral part of that plan”.

The agency estimates that, among belted occupants, about 807 serious injuries and 596 fatalities annually are caused by contact with a collapsed roof during a rollover crash. About 10,000 people die annually in rollover crashes; approximately 60 percent are unbelted.
NHTSA estimates the new roof crush standard will annually prevent between 13 and 44 deaths and 500-800 injuries when fully implemented. The estimated cost per vehicle would be $11.81. The total average cost per year would be $88-$95 million.

The proposed new standard would require that a roof withstand an applied force equal to 2.5 times the vehicle weight while maintaining sufficient headroom for an average sized adult male. The current requirement is that the roof be able to withstand an applied force equal to 1.5 times the vehicle weight, with a limit of 5,000 pounds for cars.

Posted under Automotive, Safety

This post was written by George Bounacos on September 14, 2005

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