Carfax Sued For $50 Million By 120 Dealers In Massive Antitrust Suit

Illustration for article titled Carfax Sued For $50 Million By 120 Dealers In Massive Antitrust Suit

For a fee, Carfax provides history reports of used vehicles to buyers before they buy them. It's a pretty good service. But apparently it's a little too good for some. Carfax has just been hit with a $50 million lawsuit claiming they have a monopoly on vehicle history reports.

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The lawsuit, first uncovered by Automotive News, alleges that Carfax provides cash or non-cash marketing support to the automakers and classified sites where it has exclusive agreements. The dealers also say that Carfax overcharges them for reports, to the tune of $899 to $1,549 per month for unlimited reports depending on the number of cars in inventory.

Other services apparently charge $16.95 per report or a flat fee for unlimited reports. Looking at the pricing listed that Carfax charges, it seems to be nearly in the same ballpark as $16.95 per report, if the dealer sells between 50 and 100 cars a month.

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There are a number of other niggling points, like 37 of 40 pre-owned programs require the use of Carfax reports, as do Cars.com and Autotrader.com. If you list a car on either of those sites, you can only provide a history report from Carfax.

It is expected that more dealers will join the lawsuit, with another 25 to 50 getting ready to tack their names on as well.

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DISCUSSION

andrewdaisuke
Andrew Daisuke

Can anyone shed some light on this?

Heard from a friend in the business, "never buy a car from a car rental agency, they're self insured, and nothing bad will ever show up on a carfax."