Odometer rollback used to be a simple mechanical trick. You popped the casing off the dashboard, grabbed the numbered wheels, and rolled them back. Suddenly, a high-mileage beater looked like it had barely left the showroom floor. It was easy to pass off a dud car to someone who didn’t know better.
A Missouri-based computer analyst saw a different solution. He figured you could kill the fraud by aggregating mileage data from state inspection records. Better yet, he thought you could build a business around it.
The Early Days of Vehicle History Reports
Edwin Barnett III launched CARFAX in 1984. His startup started small, selling reports based on just 10,000 vehicle records. Growth required scale. Barnett knew that to compete, he needed access to data far beyond his initial pool.
The expansion was rapid. Within nine years, CARFAX was pulling automobile records from all 50 states. A decade after that, the database hit 100 million records. Another ten years later? The company was managing around 3 billion records.
Today, CARFAX is headquartered in northern Virginia. But its roots remain in Columbia, Missouri, where the original office now hosts a massive data center. This facility processes an astounding 6 billion records, keeping the history of American roads intact.
Government Partnerships and Scrapped Vehicles
The U.S. government recognized the utility of these reports early on. During the 2009 “cash for clunkers” program (officially the Car Allowance Rebate System, or CARS), the National Highway Traffic Safety Administration partnered with CARFAX and Experian Automotive.
The government provided the Vehicle Identification Numbers (VIN) for the 700,000 old cars consumers traded in. The law required these engines to be destroyed and the metal scrapped. By sharing data with history report providers, the government ensured public records reflected these vehicles’ demise. This prevented the same clunkers from being quietly re-diverted back into the used car market.
Corporate Culture at CARFAX
Beyond the data, the company has cultivated a specific workplace environment. According to The Washingtonian, CARFAX ranks among the best places to work in America.
The perks are specific. Friday lunch catering is standard. The cafeteria includes a Wii station and a basketball court. Health benefits extend to same-sex domestic partners. The company also subsidizes gym memberships. These policies contribute to high employee happiness.
Next, we look at the actual contents of these reports.
