Every year, thousands of used vehicles pass through auction lanes, and dealers rely on condition reports to determine their bidding strategies. But what most dealers don’t realize is that 5.5% of vehicles sold at auction have hidden transmission issues—and many of them are being sold without proper disclosure.
A missed transmission fault isn’t just an inconvenience; it’s a profit killer. With the average repair cost of a transmission issue at $3,000, buying a vehicle with an undisclosed problem can instantly turn a profitable deal into a financial disaster. Worse yet, arbitration costs for disputes at auctions regularly exceed $20,000, forcing many dealers to swallow the loss rather than fight back.
Most auctions rely on static OBD readers to scan for issues before listing vehicles for sale. The problem? Static OBD readers miss transmission codes entirely on many vehicles. Why? Because their outdated technology only scans engine-related fault codes, leaving transmission, ABS, and other critical systems unchecked. In contrast, Dynamically Reconfiguring OBD Readers, like CarDr Ultra, adapt to each vehicle’s specific protocol, ensuring that no transmission fault goes undetected.
Dealers should never rely on condition reports alone. A clean Check Engine Light means nothing if the codes were cleared before auction. With 20%+ of vehicles at auction having had their codes erased, dealers are being set up for costly surprises.
Static OBD readers are unable to detect all transmission and critical module DTCs because:
Comprehensive ECU Access: Scans beyond the engine module to include powertrain, transmission, ABS, and more.
The automotive industry cannot afford to ignore the financial impact of undetected DTC codes. With Dynamically Reconfiguring OBD Systems, auctions and dealerships can:
Take action now. Protect your business and bottom line. Visit www.cardr.com to schedule a live demo.
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This article is now backed by data from over 15,000+ DTC scans conducted on cars at auctions across the country by CarDr. The analysis reveals that 5.5% of vehicles sold at auctions have undiagnosed transmission codes, resulting in $1.6 billion in repair costs and $6 billion in litigation annually. These findings underline the critical need for advanced diagnostic tools to protect your profits and build trust in the auction process.
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Parry Singh is a distinguished entrepreneur and visionary technologist, best known as the founder of CarDr.com, an AI-driven used-vehicle diagnostics, appraisal, and inspection platform that is transforming how vehicles are evaluated. He has several patents pending OBD Diagnostics. At CarDr.com, he spearheads cutting-edge on-board diagnostics and AI/machine learning initiatives, backed by multiple patents in mobile vehicle diagnostics, valuation, and condition assessment. Parry Singh pioneered the Dynamically Reconfiguring OBD Systems – technology and systems that lead to superior DTC detection. His forward-thinking approach and relentless pursuit of innovation have positioned CarDr.com at the forefront of automotive technology and revolutionized consumer confidence in vehicle transactions.
Beyond CarDr.com, Mr. Singh has founded and led several high-impact ventures, including Red Fort Capital, a $1.2 billion real estate private equity fund, and Red Fort Capital Finance, an S&P Investment Grade-rated finance company. He previously guided American Capital Realty to over $1 billion in sales in under five years and launched EthnicGrocer.com, one of the most dynamic online food retailers backed by marquee investors such as Kleiner Perkins and Benchmark Capital. A recognized leader and advisor, Mr. Singh has served on the State of Illinois TechVenture Committee and been a visiting speaker at Northwestern University’s Kellogg School of Management. His academic achievements include an MBA from Kellogg (Top Student award), an M.S.in Electrical Engineering from the State University of New York (Merit Scholarship), and a B.Tech. in Computer Engineering.
