Claims News Service, Feb. 29, 4:05 p.m. EST — Leading auto information provider Carfax reports that salvaged vehicles are making their way into driveways at an increased rate.

Carfax says that while the problem was exacerbated by the flooding that occurred post-Hurricane Katrina, in which hundreds of thousands of automobiles were totaled by insurers, the problem has expanded to include a much-wider proportion of vehicles. In its most recent report, the company said that there has been a 50-percent uptick in the number of salvaged vehicles exposed by the vehicle history reports.

“This problem is more widespread than we previously thought,” said Larry Gamache, communications director at Carfax, in a release. “Based on our data, the number one concern consumers should have right now, even above flood damage, is unknowingly buying a used car that was badly damaged in an accident. Buying a salvaged car may not be a bad investment, but you must make sure you're aware of any prior damage and, more importantly, see that the proper repairs were made.”

Several bills were introduced shortly after Katrina in an effort to utilize the information obtained by insurers after a claim is filed and a vehicle is marked as a total loss. One bill, introduced by former Senator Trent Lott, would have required insurers to disclose such a loss through companies such as Carfax. Despite Lott's attempts and the attempts of several other Representatives, the bills never became laws.

Carfax said that some of the common problems associated with previously wrecked vehicles may include:

?Title washing. Title documents may be altered to remove a salvage brand and obtain a clear title from another state.

?Air bag fraud. Scam artists are known to replace deployed air bags with phony or non-working air bags to cut costs.

?Structure/frame damage. As little as 8mm can compromise a car's structural integrity, which also may affect many of the car's safety features.

?Odometer rollbacks. The odometer also may be rolled back to further inflate the perceived value of the vehicle.

?Car clipping. Some rebuilt wrecks are actually two different cars welded together.

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Special Reports /

Carfax Notes Uptick in Salvaged Vehicles

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