Today’s used car market is bustling with countless options, and finding your dream used car might seem like a no-brainer. You can search at dealerships, explore auctions, deal with private sellers, or browse online platforms. At the end of the day, the main goal in the complicated and sometimes overwhelming process of buying a used car is making sure you’re getting something reliable.
You should be sure the chosen car won’t let you down as soon as you drive it off someone’s driveway. One of the best ways to avoid surprises is by using tools like a CARFAX vehicle history report. In our guide, we’ll break down the main aspects of a CARFAX report, so you can protect your wallet and find a ride ideal for your needs and preferences.
What Is a CARFAX Vehicle History Report?
Founded in Missouri in 1984, the company offers trustworthy information on vehicles. It started with a database of 10,000 records and now maintains 26 billion car records. The company’s highlight is the vehicle history report.
CARFAX gathers information on a car from more than 151,000 sources and makes a formatted report. This database includes information about a car’s previous owners, maintenance history, accidents, and other significant events.
The CARFAX vehicle history report provides a comprehensive and trustworthy overview of the car, enabling informed decisions. The vehicle reports allow transparent and mutually beneficial negotiation between buyers and sellers.
What Information Does a CARFAX Report Include?
Here’s what you can find in the CARFAX reports.
Ownership History
When buying a used car, you want to know how many owners the vehicle has had. The ownership history tracks down the number of owners as well as the period they had it. A vehicle that has had many owners for a short period should be considered with caution. Additionally, you can see exactly how the previous owners used the car. You probably would like to know if it was used for business or if it was a taxi.
Accident and Damage History
Hidden damage is another big concern when buying a used car. Unless you're a skilled technician, it’s difficult to tell whether a car has been involved in an accident or somehow damaged. Even if you choose to have a professional inspection, nobody ensures unbiased results. And here’s how the CARFAX report can help.
It covers any reported damage to a car, including that from extreme weather conditions and collisions. You’ll know the number of accidents, their dates, the points of impact, and the sum of the repairs. Having this information in hand, you’ll make the best possible decision.
Title and Registration Info
This part of the report reveals the legal aspects of car ownership. The provided data will help you understand whether a car has any serious legal issues and whether it’s registered. Here are some of the titles and brands you can meet in the report:
- Clean. No major insurance or damage claims.
- Salvage. The car was involved in damage or an accident and declared a total loss by the insurance company.
- Rebuilt. The salvaged car got proper repairs and passed an inspection.
- Lemon. The car has serious defects or mechanical problems.
- Flood damage. Sustained serious water damage.
Besides the titles, the report also covers the vehicle’s registration details, like its location and date, renewals, and ownership changes.
Odometer Readings
The odometer reading is another thing to keep your eye on when buying a used car. The CARFAX vehicle history report includes the most recent odometer reading obtained from reliable sources. You can compare the mileage numbers to the ones present on the odometer and find out how much the car has really been driven. The odometer reading will help you stay safe from odometer fraud.
Service and Maintenance Records
The used car you choose may run fine now, but it might be a ticking bomb down the road. That’s why you should check if the car has been appropriately serviced. A detailed service record offers insight into the vehicle’s maintenance history. It involves information on oil changes, tire rotations, recalls, and safety inspections, ensuring a smart purchase.
Vehicle Use Type
This part of the report contains vital information on how the vehicle was used previously. You can find out whether the vehicle was personal, leased, rental, fleet, or taxi. How can this information be useful? If the car was used as a taxi, it could have more wear and tear or higher mileage than one used for personal needs.
Where Does CARFAX Get Its Information?
CARFAX collects data from a wide variety of sources, including insurance companies, government agencies, auto auctions, and more. So, who reports CARFAX?
- State DMVs
- Police departments
- Insurance companies
- Service shops and dealerships
- Fleet companies and rental agencies
- Collision repair facilities.
However, not all repairs, collisions, and damage appear in the CARFAX system. In some cases, these details aren’t submitted and may be missing from the system.
How to Get a CARFAX Report
Getting a CARFAX vehicle history report isn’t difficult. You’ll have several options.
- Car dealerships often have CARFAX reports on their used vehicles. They even provide links for free CARFAX reports on their websites.
- If you know the vehicle’s VIN code, then you can easily get a vehicle history report yourself on the CARFAX website.
- Used car platforms also offer a CARFAX report as part of the vehicle listing.
How to Read and Interpret the Report
Once we’ve explored the basics, let’s learn how to read a CARFAX report. First things first, you should learn to define possible red flags.
Red Flags to Watch For
Title issues. The worst of the worst, these problems affect your car’s safety, reliability, resale value, ability to register, etc. For instance, if the vehicle has a salvage title in the report, it means an insurance company declared the vehicle a total loss after major damage, and you shouldn't pursue it anymore.
Multiple accidents. To get an insight into the car's overall condition, you should check out previous collision repairs in the report. Vehicles involved in many accidents can have recurring mechanical issues that trace back to previous collision damage. For instance, car frame or structural damage is a red flag that can cause serious problems in the future.
Multiple ownership. Another huge no-no is several owners in a short period. A long list of past owners indicates that they encountered some costly or difficult issues. Plus, the trouble with cars like these can often go beyond the mechanical.
Mileage gap. You should also study the mileage history in the vehicle report. If you find a sudden decrease in mileage, large gaps in the records, or a low figure that doesn’t correspond to the car’s age, it might be odometer fraud. You can end up paying a price for the car that isn't worth it.
What’s Not Always Included
The report may not include the full story of the car’s past, and here’s why.
- Some minor damage may be fixed privately or at the shops that don't report to CARFAX.
- A police department’s system is old and inaccessible to modern technology, and updates take time to appear in the database.
- When a car's regular maintenance is provided at a private shop and not reported, it might not be included in the report.
CARFAX Alternatives
Not all vehicle history platforms are created equal. And in search of alternatives to CARFAX, consider the following options.
The best rival to CARFAX is considered AutoCheck. The website offers almost the same information as a CARFAX vehicle history report, except for maintenance and service details. It also has a unique car scoring system, rating the vehicles’ condition from 75 to 90. These reports are especially useful for tracking auction cars. AutoCheck is cheaper than CARFAX, costing $24,99 for a report.
Another alternative to CARFAX is VINcheck. This is the best option for anyone trying to keep costs low. The website offers free information on a vehicle’s accident and title history. However, its accuracy may be surpassed by CARFAX reports.
Why a Vehicle History Report Matters When Buying Used
A vehicle’s history report is a powerful tool for everyone buying a used car. It offers a window into the car’s past so you can review all the important aspects before making a decision.
A vehicle history ensures a sound investment and confident purchase of a used car. It reveals all the hidden issues from the past that may turn into unexpected expenses down the road.
Additionally, by showcasing previous accidents, title status, and major services, a vehicle's history report often serves as a solid background for a more meticulous inspection and test drive.
Should You Trust a CARFAX Report?
The CARFAX vehicle history reports are essential for used car buyers and sellers, serving as a reliable starting point. However, you should remember it’s just a tool, not the whole picture. Professional inspection and a thorough test drive are still essential.
Used car history reports can make your buying journey much easier. This comprehensive document can be especially valuable for those buying their first rides, guiding them to a better understanding and choice.