Dealers Suing Carfax Consider Alternatives

Online, October 11, 2013 (Newswire.com) - After more than five months, more than 420 car dealers have joined a mass action lawsuit filed against Carfax. This new development may increase the liability that Carfax is facing to $150 million.

The mass lawsuit was brought forth in April on behalf of car dealers accusing Carfax of violating the antitrust laws by having exclusive contracts with several popular used-car sites like cars.com and autotrader.com. The lawsuit contends that car dealers are forced to subscribe for Carfax's services as part of competing in these online marketplaces, and this lack of competition enabled Carfax to overcharge car dealers.

Dealers, even those who did not join the lawsuit, are looking forward for a result that could mean Carfax will no longer be the only option available-- where used cars sites will no longer require them to use Carfax as their only source of vehicle reports. Such a result will allow more open competition which will result in lower prices and better services, benefiting dealers and consumers in the end.

One alternative dealers are point to as a lower cost source for vehicle history is [url:http://www.VinAudit.com]-- a public access provider for the National Motor Vehicle Title Information System (NMVTIS). As stated by VinAudit.com CEO David Wu, "We believe access to basic vehicle history data shouldn't cost a fortune. In fact, it should be close to free in this day and age." For their over 1,200 subscribed car dealers, VinAudit.com offers access to vehicle history reports for just $1.00 per report, often saving dealers hundreds of dollars a month compared to a Carfax subscription. Naturally, Mr. Wu is thrilled by recent developments: "Dealers have spoken loud and clear: they want a fair and open marketplace for vehicle history, and we'd love to see that happen."