Auto information provider company Carfax is reporting that salvaged vehicles are still making their way into driveways at an increased rate.
Carfax said that while the problem was exacerbated by the flooding that occurred post-Hurricane Katrina, where hundreds of thousands of automobiles were deemed 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 its 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.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.