Being unsure of what you are actually buying is one of the biggest headaches involved in a used-car purchase. Often, you are laboring in the dark. The car might look good, but it could have mechanical problems, hidden damage, or a lien on its title. A lack of knowledge on these potential issues can be very costly.
The good news is that there is something you can do to throw some light on the entire subject. You can obtain a vehicle history report on any car you are considering, and that report can go a long way to keeping you out of the dark during a used-car purchase. Even better, many times, a Carfax vehicle history report will be provided to you for free by the dealer on for-sale listings here on Usedcars.com. Just look for that notation on the listing.
What Is a Vehicle History Report?
A vehicle history report can be considered the used car's resume. You might hire the used car for the important job of being your next vehicle, but before you offer up the job to it, you need to know more about it. Like a resume, a vehicle history report will tell you what the car has done, how long it has been around, and what experiences it has had. Unlike a resume, though, the vehicle history report might also tell you negative things about the car, the kind of things you might skip if you were preparing your own resume.
Why it matters when buying a used car
A Vehicle History Report can reveal hidden problems that might not be apparent during a test drive or inspection. From prior accidents to title issues, these reports pinpoint risks that could affect the car's safety, dependability, or resale value. By reviewing the Vehicle History Report of the car you intend to purchase, you can make more informed decisions, negotiate better deals, or choose to avoid a problematic vehicle altogether.
- Avoid costly repairs: Identifies damage that could lead to future expenses.
- Ensure safety: Reveals if the car has structural or airbag issues.
- Protect your investment: Helps confirm the car’s true market value.
VIN: The key to unlocking a car’s past
The Vehicle Identification Number is a 17-character code unique to each vehicle, typically located on the dashboard or door jamb on the driver's side. An AutoCheck or Carfax report uses the VIN to reveal a used car's history, including accidents, maintenance records, ownership details, and more.
What Does a Vehicle History Report Contain?
A Vehicle History Report compiles a wide range of data points to provide a comprehensive overview of a vehicle's history. Below are the key sections usually included, each offering important insights for prospective buyers.
Accident and Damage History
This section highlights any recorded accidents, structural damage, or airbag deployments. Understanding a vehicle's accident history is crucial, as even repaired damage can impact performance or safety. For instance, a car that has sustained significant front-end damage may have ongoing alignment issues. This is why it’s essential to pay close attention to the severity and frequency of incidents to assess potential risks.
- Collision reports: Includes dates and severity of accidents.
- Damage types: Covers frame damage, floods, or fire incidents.
- Airbag deployment: Indicates significant impact events.
Title Status and Branding
The title status indicates whether the vehicle has a clean title or is labeled with terms like “salvage,” “rebuilt,” or “flood.” A salvage title suggests that the vehicle was deemed a total loss by the insurance company, while a rebuilt title means it was repaired and re-registered. Flooded vehicles may have hidden electrical or corrosion issues. These labels can significantly reduce a vehicle’s value and complicate insurance or resale.
- Clean title: No major issues reported.
- Salvage/rebuilt: Signals past severe damage or repairs.
- Flood branding: Warns of water-related damage risks.
Odometer Readings and Mileage Verification
Accurate mileage information is essential when assessing the condition and value of a pre-owned vehicle. This portion tracks documented odometer readings over time, helping to identify possible tampering or odometer rollbacks. Inconsistencies, such as a vehicle displaying fewer miles than a previous record, could signal fraud. A Vehicle History Report ensures that the mileage aligns with the vehicle's age and usage.
- Mileage timeline: Lists recorded odometer readings by date.
- Tampering flags: Highlights inconsistencies in mileage reports.
- Usage context: Ties mileage to the car’s overall condition.
Number of Previous Owners and Usage Type
This section outlines the number of previous owners and the vehicle's usage, indicating whether it was used as a personal car, rental, lease, or for commercial purposes. A vehicle with multiple owners or one used as a rental may show more extensive wear, while a car with a single owner, used for personal purposes, might have been better maintained. Understanding the vehicle's usage history helps you assess its likely condition and lifespan.
- Owner count: Indicates how many people owned the car.
- Usage types: Includes personal, rental, fleet, or lease.
- Ownership duration: Shows how long each owner kept the car.
Maintenance and Service History
A well-maintained car is generally more reliable, and this section includes details of recorded services such as oil changes, tire rotations, and major repairs. While not all Vehicle History Reports provide comprehensive maintenance records, those that do can reveal how diligently previous owners cared for the vehicle. For example, consistent service records indicate the car was properly maintained, while gaps in documentation may raise red flags about potential neglect.
- Service records: Logs routine maintenance like oil changes.
- Major repairs: Notes significant work like transmission fixes.
- Recall history: Highlights any manufacturer-reported issues addressed.
How to Get a Vehicle History Report
Using trusted providers like Carfax, AutoCheck, and NMVTIS
A free vehicle history report can be a helpful starting point, but for a more complete picture, consider using trusted services like Carfax or AutoCheck.
- Carfax: Carfax compiles data from thousands of sources, including DMVs, repair shops, and insurance companies. It’s user-friendly and widely accepted by dealers and buyers.
- AutoCheck: Operated by Experian, AutoCheck focuses on auction data and provides a score to summarize a vehicle’s history. It’s often cheaper than Carfax and is great at identifying cars from auctions.
- NMVTIS (National Motor Vehicle Title Information System): A government-backed database, NMVTIS is less detailed but highly reliable for title and salvage history. It’s a cost-effective option, though reports are less polished.
To obtain a report, go to the provider’s website, input the vehicle's VIN, and pay for the report. Numerous providers offer options for single reports or multi-report packages for those looking at several vehicles.
When dealers provide reports vs. when you should request one
Some dealerships offer free Carfax or AutoCheck reports as a selling point, especially for certified pre-owned cars. However, you should verify the report's authenticity by checking the VIN and date.
If a dealer does not provide a report or if you are purchasing from a private seller, request your own report. Always get a report for big purchases or if the vehicle's price appears unusually low, as this may indicate hidden problems.
How to Read and Understand a Vehicle History Report
Vehicle history reports can be complicated, but understanding the main sections and potential warning signs enables you to identify issues and evaluate a car's value.
Key sections to pay attention to
- Title History: Shows if the vehicle has a clean, salvage, or rebuilt title. A clean title is ideal. Others may indicate serious past damage.
- Accident History: Details reported collisions, including severity and damage location.
- Ownership History: Lists the number of owners and whether the car was used personally, commercially, or as a rental.
- Service Records: Indicates maintenance like oil changes or major repairs, reflecting how well the car was cared for.
- Odometer Readings: Tracks mileage over time to detect potential odometer fraud.
What is a Branded Title, and Why is a Vehicle Title Check Important
A vehicle title check is one of the most important steps in evaluating a used car. It shows whether the vehicle has a clean title or if it has been categorized with terms like salvage, rebuilt, or even lemon title—a designation that indicates the car had repeated issues and failed to meet quality or safety requirements.
A branded title can significantly affect a car’s resale value and insurability, and in some cases, it may point to underlying problems that aren’t immediately obvious. It indicates that the car has experienced substantial damage, usually from an accident, flood, or another major event, and has been declared a total loss by an insurance company. Once the vehicle has been repaired and has passed safety inspections, it receives a branded title to alert potential buyers about its history.
Common red flags to watch for
- Salvage or Rebuilt Title: The vehicle was deemed a total loss by an insurer.
- Multiple Owners in a Short Period: Suggests the car may have recurring issues prompting quick resales.
- Inconsistent Odometer Readings: Could indicate tampering or rollback, misrepresenting the car’s true mileage.
- Flood Damage: Often reported in title history, this can lead to long-term electrical and mechanical issues.
- Lemon Law Buyback: The car was repurchased by the manufacturer due to persistent defects.
Interpreting accident reports and title issues
Accident reports can vary. Minor collisions may not be cause for concern, but terms like “structural damage” or “airbag deployment” indicate a more serious impact. It’s important to compare the accident history with service records to determine whether repairs were performed by qualified professionals.
Title issues such as salvage or rebuilt classifications often suggest that the vehicle was once decommissioned. While some rebuilt cars can be safe, they may still have underlying damage or a lower resale value. Always have a trusted mechanic inspect any vehicle with a title or accident-related concerns
AutoCheck vs Carfax: Which Report Should You Use?
Side-by-Side Comparison of Features and Accuracy
Data Sources
- Carfax: Pulls from DMVs, insurance companies, repair shops, and police reports.
- AutoCheck: Uses Experian’s database, with a focus on DMVs and auction records.
Accident History
- Carfax: Provides detailed accident reports, often including severity and damage specifics.
- AutoCheck: May lack detail on minor accidents, but reliably reports major incidents.
Title History
- Carfax: Comprehensive and clearly formatted, covering clean, salvage, and rebuilt titles.
- AutoCheck: Strong focus on salvage and auction titles.
Unique Feature
- Carfax: Offers a buyback guarantee if a title issue is missed in the report.
- AutoCheck: Provides an AutoCheck Score (1-100) to summarize the vehicle’s history.
Cost
- Carfax: Approximately $44.99 for a single report, higher for multi-report packages.
- AutoCheck: Around $29.99 for a single report, more budget-friendly.
Accuracy
- Carfax: Highly accurate but may miss some auction or salvage data.
- AutoCheck: Equally reliable, with superior tracking of auction-related history.
Carfax
Pros:
- Detailed reports with user-friendly formatting.
- Wide dealer acceptance and brand trust.
- Buyback guarantee for undisclosed title issues.
Cons:
- More expensive than competitors.
- May miss some auction or salvage data.
AutoCheck
Pros:
- Lower cost, ideal for budget-conscious buyers.
- AutoCheck Score simplifies decision-making.
- Strong auction and salvage title tracking.
Cons:
- Less detailed accident reports.
- Less recognized by some dealers.
Which to Choose?
Use Carfax if you want to get comprehensive accident and maintenance records or intend to sell the vehicle. Opt for AutoCheck if you're looking to save money or believe the car may have come from an auction, as its rating and auction information can be useful. For maximum assurance, especially with expensive or high-risk purchases, consider obtaining both reports.
Vehicle History Reports Are Not Perfect
It is important to note that, as useful as vehicle history reports are, they don't offer a complete picture of the car you might potentially purchase.
The FTC warns that a vehicle history report is not a substitute for an independent vehicle inspection. Before you buy a vehicle, it's a good idea to get the vehicle inspected by a skilled technician to ensure it does not have hidden damage or will be the subject of expensive repairs. With continued inflation in the price of vehicle maintenance and repair, it is easy to underestimate what a particular "fix" will cost you.
Further, if you are obtaining a new car, getting it fixed is probably the last thing you want to do. The combination of a comprehensive vehicle history report and a thorough inspection by a qualified mechanic will take a great deal of the worry out of the used-car purchase process.