Used Car Buying Tips - Part 2: Understanding Vehicle History Reports

by golbguru on July 17, 2007

Today, let us assume that you are through with yesterday’s classic confusions and have come to a decision regarding the amount of money you can afford and the type of car you want. The next thing to do is to start looking for cars, and pull up the vehicle history records for the ones you like.

Here are some websites where you can start your used car search:

  • AutoTrader.com (gives you a list of used vehicles at all the dealer locations around a given zip code)
  • Cars.com (listings from dealers as well as from private sellers)
  • Ebay Motors
  • Your local Craigslist
  • Your local newspaper classifieds
  • If you are looking for a *certified used vehicle*, most manufacturers have some kind of a national database of such vehicles (for example, Honda and Toyota certified used databases). Be sure to check these out - sometimes they list cars that do not appear on any of the other websites mentioned above.

Once you have successfully searched for the car you want, it’s time to pull up it’s history to check if it has been through any “bad times“. Currently, in US, there are two websites that offer vehicle history reports for consumers:

  1. CARFAX ($24.99 for a single report or $29.99 for unlimited reports over a period of 30 days)
  2. Autocheck (provided by Experian Automotive - a part of Experian - the guys who compile your credit history; $19.99 for single report or $24.99 over a 60 day period)

Information from these two reports is similar, but not exactly same. For example, for the 2005 Toyota Corolla we bought, CARFAX shows 4 records listing various events whereas Autocheck shows 6 records and some additional data. Although essentially the same information was present in both the reports, it was obvious (from the details) that the reports were pulled up from different sources.

For the purpose of this post, let’s discuss the more popular CARFAX vehicle history report. Most arguments could be easily extended to the Autocheck vehicle history reports also.

What Does A CARFAX Report Tell You

According to it’s website, a vehicle history report can carry information on the following:

  • Title information, including salvaged or junked titles
  • Flood damage history
  • Total loss accident history
  • Odometer readings
  • Lemon history
  • State emissions inspection results
  • Number of owners
  • Service records
  • Lien activity, and/or
  • Vehicle use (taxi, rental, lease, etc.)

If there are discrepancies in the things listed above, there are clearly marked in every vehicle history record so you don’t really have to do any “guess work”. Click here to see an example vehicle history report of a damaged vehicle. Problem areas are marked in red and bold (in a movie-style user-friendliness).

Since vehicle records are arranged by date and the odometer readings are chronologically displayed, odometer discrepancies are easy to figure out. However, issues with title information, lemon history, flood damage will only appear if someone has reported these issues to CARFAX (read the section titled “A Clean CARFAX Report Does Not Mean A Clean Vehicle” below). The report also tells how many people owned the car after it hit the road for the first time. Too many owners (2+) probably means inconsistent handling history - something which you should avoid. For the same reason, you should avoid vehicles marked as rental. Leased vehicles are fine - as long as they don’t show too many miles/year. According to Cars.com:

People who lease are charged for all necessary repairs. This policy encourages people who lease vehicles to take care of them.

By the way, lack of “service records” on a CARFAX report does not necessarily mean that the vehicle was not maintained properly. There is always a possibility that the servicing was done by a shop that does not report data to CARFAX.

At times you can even read more into a “clean” CARFAX report. Here is an excerpt from one such clean report for a certified used Honda Civic that we actually test drove last week:

Carfax stolen record on a *certified* used vehicle

Hmm .. “vehicle reported stolen” .. that too in Louisiana (think abandoned vehicles in swamps). That sort of breaks your trust. There was no way we could have bought that vehicle in spite of it’s clean CARFAX record.

We spent about an hour examining the vehicle ourselves, and from things we could observe, there was some evidence of water damage to the interiors (we compared the carpet and the upholstery to other Honda Civics and it was obvious that this one had some problems). We brought this to the notice of the salesperson who was trying to give us a *good* deal on that particular car - and he just shrugged it off with “Don’t worry, it’s a certified vehicle“. We waved him goodbye within a few minutes after that.

A Clean CARFAX Report Does Not Mean A Clean Vehicle

I have met plenty of students in my town who have bought cars after checking up a CARFAX report - which appeared to be clean. They did not opt for a detailed mechanical inspection because of the *clean* vehicle history. This is not a very wise thing to do for the following reasons.

Somewhere on it’s website, CARFAX says this:

CARFAX compiles the CARFAX Vehicle History Report from information it receives from thousands of sources. As extensive as our database is there are still accidents that are not reported to CARFAX.

You should keep in mind that all accidents are not reported to a DMV (or other sources from which CARFAX gets it’s data). Accidents that are reported usually follow the *normal* course of actions, which includes: filing a police report and/or reporting it to an insurance company for the purpose of claims and/or having the vehicle repaired at a service center that reports data to CARFAX. However, a number of times, this normal course of actions is not followed and as a result the information does not appear on any official records and hence does not appear on the CARFAX report.

Similarly, not all repairs are reported to CARFAX (generally happens when repairs are done at an arbitrary, cheap body shop instead of a dealer-associated body shop) and hence do not appear on the CARFAX report.

A classic situation that we see often in our university town is a good example of how certain events/accidents never make it to the CARFAX report. Most students usually look for lower insurance premiums and end up with policies with high deductibles. When such students get into accidents, they usually try to settle the matter without involving the police (so there is no police report). Then, they take their cars to some cheap repair shops in town, pay for the costs of repairs from their own pockets rather use their insurance (this happens due to high deductibles and also because they don’t want their premiums to rise due to insurance claims - as it is, premiums are very high for unmarried males under age 25).

In such situations, the damaged cars are back on the road within a week and there is absolutely no record of the accidents at all. CARFAX reports for such cars are absolutely clean, although the cars may have suffered cumulative damages worth thousands of dollars over the years.

The Meaning of CARFAX Buyback Warranty

CARFAX offers a buyback warranty on certain eligible vehicles. Here are a couple of important clauses in it’s warranty coverage.

  • Upon finding no severe problems (major accidents, fire, flood damage, odometer problems or lemon history) were reported by a DMV, the vehicle automatically qualifies for the Buyback Guarantee.
  • If you later discover that a severe problem was reported by a DMV and not included in the Vehicle History Report, CARFAX will buy the vehicle back.

Don’t let this warranty clause fool you into blindly buying a vehicle that appears clean on CARFAX. The keywords in this warranty clause are again “… reported by DMV …”. The warranty simply gives you an assurance that all the information available through government agencies has been included in the CARFAX report. If you later find out that your driver-side door was replaced after a side-impact accident, which was never officially reported anywhere, that warranty is of no use to you.

The only time you can avail the buyback warranty is when an accident has been reported by a DMV and, in spite of that accident record, the CARFAX report for that particular car comes out to be clean (accident-free).

What Should You Do Before Buying A Used Vehicle

Even if the CARFAX report is clean, always make sure you get your vehicle checked thoroughly by an independent mechanic. If the dealer/seller will not allow you to take the vehicle to your mechanic - do your own inspection (if you are confident enough) or just let the deal pass, you will certainly find others who will allow you to do so.

In fact if you read the information on CARFAX website carefully, you will notice that they acknowledge this:

While we’ll never know everything about a particular car, a CARFAX Vehicle History Report combined with a test drive and an inspection by a qualified mechanic is a consumer’s best protection when buying a used car.

Now, thorough vehicle checkups don’t come cheap (usually between $45 ~ $90 per vehicle depending on where you have the vehicle checked), so make sure you get only *worthwhile* vehicles checked. I will define worthwhile vehicles as the ones which satisfy the following three conditions:

  • It should have a clean CARFAX record.
  • It should pass a cursory visual inspection that you should conduct yourself.
  • It should pass a “test drive” run.

If there are problems with any one of these conditions, don’t waste your time and money in having that car inspected.

Tomorrow, we will discuss points #2 and #3 in detail - that is, how you can first visually inspect a vehicle with very minimal tools and how to test drive a vehicle before taking it for an expensive checkup.

Before you go, let me summarize this lengthy post in a few words - a vehicle history record and a thorough checkup by a good mechanic are complementary measures that you must implement before buying a used car; don’t skip one in favor of other.

As an aside, for Canadian citizens, CarProof.com runs a vehicle history report service in Canada, analogous to CARFAX in US.

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{ 99 comments… read them below or add one }

1 Debbie 07.18.07 at 7:17 am

You discuss why a vehicle history check alone is not as good as a vehicle history check + inspection. But can you talk about why a history check + inspection is better than just an inspection? Won’t anything that affects the car turn up in an inspection? Or is it just because the history is cheaper, so you can sometimes eliminate a car without having to pay for an inspection?

2 golbguru 07.18.07 at 8:42 am

Debbie: “Or is it just because the history is cheaper, so you can sometimes eliminate a car without having to pay for an inspection?” - That is exactly right.

History check should be your first step (but definitely not the last step) in looking for a used car.

Like I say towards the end, checkups by mechanics can be expensive. Plus, they are time consuming. Whereas, history reports can be obtained within minutes (for cheap) and can be analyzed in another few minutes. So it’s a good idea to eliminate a vehicle after an history check.

3 miguel 06.17.09 at 12:40 pm

Hey, curious maybe you can help me in my situation on this subject. I leased a kia van last year and always noticed the driver side sliding door seemed heavier, but never made anything of it because the dealer ran a “clean CARFAX”…so, I decided to run an AUTOCHECK report and not surprisingly found that a year proir to me an auction announced the unibody damaged in big bold red letters under a major negative problem category. I took it to the dealer had it inspected by them and other mechanics, and no one could find any evidence. Now I don’t feel safe with the vehicle and no one is willing to help me because they say …its my problem…I can’t afford to trade it and deffinitly don’t want to take a hit on my credit…is there anything I or the dealer can do.

Thanks…………Miguel

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5 nprlisner 04.29.10 at 3:44 pm

I looked at a vehicle yesterday with a pretty clean CARFAX report that had the car registered at the dealership. Ok, it must have been a demo right? Wrong, the car had been traded in for another car. Since the mileage was only 15000, the dealer was able to call it Toyota Certified. I found out that the a dealer is able to “replace” the carfax report. I called the Salesman on it who originally told me that the car was likely driven by the owner. I later found out the true story. The car was clean. Not sure why they would do that but it happened. A clean CARFAX report is only one small piece of the used car puzzle.

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Bedroom curtains also act in the area as sound proofers.

65 Primary schools in Dubai 02.04.15 at 7:43 am

There certainly are lots of things things that you can do in order
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many surprises for you! This short article will give you a bit
of sound advice about how to cope with all the other obstacles, university life and classes you
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66 business process management 02.05.15 at 8:18 am

Enterprise Re Source Planning program has been implemented by all of the firms to streamline their processes that
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A lot of time, efforts and cash are mixed up in ERP implementation procedure.
The price of ERP execution depends and varies on many factors.

The size of the organization and the business process management process’
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ERP’s performance includes many procedures which increase the expense of ERP implementation. The services
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67 online money transfer 02.06.15 at 1:37 am

Half the world’s adults don’t possess a bank account. This leaves them unable to handle unanticipated events including natural disasters
or medical condition in the household. The system of online money transfer transfer services
provides an alternative for the 2.5 billion grownups
who are now unbanked. The innovative strategy enables people to make use of
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Maybe you are seeking at things to do next, although you’ve decided you want to download music.
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Always make sure that your music is downloaded by you from a lawful website.
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69 vehicle signage 02.11.15 at 3:57 am

You require car signage to direct you with all
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Although most companies would offer great training in jobs and the respective procedures, you still need panels or the health and vehicle signage auckland.
The security symbols and signs might be tough to consider,
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In a manufacturing situation that is typical, the worker class must
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70 indian restaurants 02.12.15 at 2:48 pm

You’ll need to select an area where your new venture may flourish after you’ve made a
decision to begin a restaurant company. Place is of great significance to the stability of
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can find a lot of other items to think about. These offers a set of selection criteria that can be utilized to assess how
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71 Best Schools In Dubai 02.25.15 at 11:30 am

When you consider it, school can be mind-boggling to a student
that is new. Such enormous adjustments, in other areas of
your lifestyle–at school these adjustments occur all at
one time. It’s very important to have guidance and help.
That is why this article includes some Primary Best Schools In Dubai in Dubai tips to remember to are successful.

72 Wedding Gowns In Dubai 02.25.15 at 10:13 pm

Should you be looking for Wedding Gowns In Dubai gowns that are very cheap but
still need a primary quality dress then here are the
tips for getting a drop-dead gorgeous wedding
dress at a ridiculously cheap price.

73 Schools In UAE 02.25.15 at 11:30 pm

Those college that is considering have many queries about it.
Numerous encounters are entailed by school; for that reason, it’s important that you will be ready prior to attending.

Here is guidance about schools in UAE
to be able to be more prepared prepared.

74 computer parts 02.26.15 at 6:35 am

For many people, a pc that is pre constructed is not the solution to what they
desire or desire. A visual developer will need a thing that takes into account computer parts that are
heavily geared toward graphic design, such as a more full-featured graphics card as well as a vast quantity of
RAM, while the games examiner may want something that will offer you a
powerful 3-dimensional card and also a a lot better sound set
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75 Dance Floor Hire 02.26.15 at 9:09 am

Many individuals are engaged in discovering just what an illuminated LED
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you all that you have to know - at least officially speaking.
In short, a lit led dance floor hire
is a mixed dance-floor and stage - that’s, it can function as either,
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In the event you have ever before observed colored LED lights for action, then it’s easy to only visualize just what there is this a breathtaking ground-breaking product, correct?
It is actually like nothing you’ve ever seen before -
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76 florist Auckland 02.26.15 at 6:04 pm

A nearby florist can help you discover the proper fresh flowers for just about any occasion. You might
visit the shop yourself and pick your blooms out to produce an arrangement much more personal, with a nearby florist.
Working with a local community florist is going
produce a personal relationship by means of your flower shop.
This relationship may create a huge distinction if you have a demand for
a flower shop who will determine in what you’re looking for
and make great suggestions for family occasions including funerals, weddings, or alternative occasions which happen in the foreseeable future.
One more advantage of working with a neighborhood florist is you are not unable to see for yourself how things will probably be
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77 vodafone contact us 02.27.15 at 12:27 am

Regardless of if you prefer it or not believe it, vodafone contact us helpline| vodafone customer service number is a significant
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Just look about and you may see examples of it everywhere - from SMS, to in-game advertising, to the net that is cellular.
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your requirements.

78 debt collectors 02.27.15 at 12:40 am

Unless your business-only requires cash, most companies may run into the situation of being stiffed to get
a payment, whether by injury, like a bounced check, or with a consumer neglecting their obligations.
It may be very challenging to gather with no appropriate legal training on these
types of accounts that are delinquent. That’s why debt collectors is hired by many companies accumulate them and to look after their
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79 industrial backpack vacuum 03.02.15 at 8:17 am

Commercial vacuums were created with two basic features
in mind - the elimination of debris of types from a floor along with the removal
of debris of all sorts in the air in the environment that was working.

The primary application was catchy, to say the least, However, the particular
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80 transfer money internationally 03.03.15 at 8:42 am

Transfer Money Internationally have become
more common in the Britain. There are far more reasons than ever to send
money abroad, and several Britons working offshore desire money to be brought by routine
money transfers back. High Street banks that
are traditional frequently handle ever as pain transactions, and
don’t always do a job that is good with funds
transfers. The good news is there are more companies you are sure to be able to find
one which satisfies your needs, and than ever that focus in international cash transfers.

81 wedding speaker hire 03.03.15 at 11:11 am

When you hear about keynote speakers, you most likely immediately feel
of a man beginning an event. That is basically because the name was based on the musical
term ‘key-note’, which means the base that underlines all music
created. Nowadays, keynote speakers have become extremely popular with
companies. Almost all supervisors are hiring anyone to speak not only inside their offices but additionally
at important occasions. According to the purpose that has to be served, these speakers differ.
For instance, a business may PA hire Surrey, an inspirational speaker and maybe even maybe even a keynote wedding speaker hire that is serious.

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Have you been exhausted for nz outdoor furniture new zealand furniture and returning home empty-handed from shopping?

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83 window blinds 03.04.15 at 3:33 am

The drapes in a chamber determine how a room appears and feels.
There really are lots of curtain styles all meant for different window types making it better to locate the
proper drape type. Numerous variables which include the size of the window, the design and the precise location of the window blinds determine
the type of curtain to be used. For a house with big windows, curtain type among the
very best strategies to dress them. Choose the material, shade and styles attentively.

You can even have the drapes custom made especially for large windows.

84 radiology auckland 03.04.15 at 9:00 am

The different benefits of the intermediary world of scientific disciplines has been the
advancement as well as systems which have actually given a great leap
in each sense of the word to the world of scientific disciplines
and technologies and invention of a few of the most radical instruments.
One such technique that is the result of such inter-disciplinary attempts and has been quite
useful in treating and diagnosing variety of disorders
that was not considered easy to treat till day is the method of pregnancy ultrasound radiology auckland.
The technique of ultrasound scan auckland involves research along with use of imaging
technologies as treat various ailments, as a way to identify as well.

Many of these imaging systems which can be used are computerized tomography
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85 http://gamezden.com 03.06.15 at 4:40 am

This part of the process took less than 45 minutes using Pro-ER.
Junk Cars Cash is equipped with its own fleet of tow trucks offering services
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86 facetime for windows 03.12.15 at 8:37 am

Facetime is an application developed by Apple to be employed in its various products such as
iPad, iPhone and also MacBook. It allows users of Apple devices that are cellular communicate easily with
other users and to connect. It allows video calling via additionally your
cellular telephone number or your email address. Essentially, it is a movie telephony together with Voice
over Internet Protocol (VOIP). Before iOS 6, Facetime demands Wi-Fi link to work-but after iOS 7’s release and folks may also use facetime
for pc over cellular networks including LTE or 3G. Nevertheless,
unfortunately, Apple doesn’t help any installation of face time on a PC.
As some other Apple goods, almost all of the software are amazing and just permit the product being used within the product
and eco system of Apple. It is only one of Apple’s manner in controlling and
maintaining its goods under one near environment.
It doesn’t let much liberty for integration with additional
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Bluestack or Youwave to imitate facetime for windows for pc,
it cannot be done at the minute.

87 colon hydrotherapy 03.15.15 at 5:10 am

Together with all the junk that people have
around us today, it is extremely likely that our physiques are also carrying
an amount of residual grime from each of the preservative-laded food we eat and the un-healthy life styles we live.
It is crucial to flush out all if we are to expect to live healthier and longer that remaining grime decaying aside in our intestines.

In ancient times, when people lived colonic irrigation auckland longer lives or colonics a period was used as a
form of medical treatment to maintain colon health.
Clinics providing massage providers and colon hydrotherapy
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to aid us keep healthier inside and outside nowadays.

88 Rome Transfer 03.19.15 at 12:15 pm

Advantage is another factor when selecting for an airport transfer service to take
into account. Some RomeCabs services possess a regular allowance in the number of excursions, or operate just at special hours.
A traveler also has to understand whether the Rome Transfer service will likely
be accessible in the event the plane arrives quite early in the morning or late during the night.
The informed traveler might also desire to think about the
common waiting time for a RomeCabs, and choose a firm predicated on the flight’s period of birth.

89 computer parts nz 03.19.15 at 5:49 pm

Believe about your future wants also when purchasing a desktop
computer, do not just think of your needs today.
You will probably have this desktop computer for multiple years, so you’ll wish to get
computer parts nz that may
manage your potential function, should you’re thinking about getting into
photography or video work. It is going to save
you from buying yet another computer too immediately after after this
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front.

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91 microsoft points gratis 03.25.15 at 3:50 am

From developing a distinctive gamer identity and profile on the X-Box Live system, the complimentary Gold
membership lets fundamental functionality that is online
possible. You might be also in a position to generate and keep a record of friends and buddies you fulfill online.
You’re also given access to the Xbox Live Marketplace
to be able to obtain customization alternatives on your Gamertag and demos.
This Silver account doesn’t, nevertheless, provide for internet charges for many
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92 Ralph Lauren voucher code 2015 03.25.15 at 7:01 pm

Figure a great organization system out. Some might end
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Consider putting them in a book and purchasing a couple of
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you clearly see your Ralph Lauren voucher code 2015 Lauren discount code 2015 and enable you to
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93 Latonya 03.25.15 at 9:39 pm

There are two heating elements in the toaster ovens. A slide-out crumb tray is included for easy cleaning.

In our test kitchen, we have experimented extensively with cheesecakes.

94 electrician singapore 03.26.15 at 12:42 pm

The next step that you should take is to hire a qualified electrician, once your house is finished.
But that is not as simple as it sounds because finding the greatest
electrician takes time and some effort. You’ve got to create calls to
electric companies which have a pool of electricians working for them.
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level.

95 unique wedding dress styles 03.27.15 at 1:10 am

Make the most of your winter unique wedding dress styles by integrating elements that are natural that are distinguishing into your decor.

As an example, locate a place that will enable guests to enjoy a roaring fireplace, and the smell of boughs that are fresh.
Further contributing to the comfy contact of wintertime, feature gourmet hot cocoa, spiced wooden accent pieces that were
abundant, or apple cider. Utilize our wedding budget breakdown and purchasing hints to help without busting the
budget, make your ideas possible.

96 Bloomingdales sale code 2015 03.27.15 at 5:51 pm

At any time you-go shopping, create a budget and stick to it.

Should you be using Bloomingdales sale code 2015 online promo
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97 it networking 03.27.15 at 6:56 pm

Even though all wireless gear marked as 802.11 will have conventional features such
as encryption and access control each producer has a different way it is commanded or got.
it networking follows that the guidance that follows
may seem somewhat technical because we can only just tell you exactly what you’ve got to do not the way to do it.
You need to read the manual to be able to find out how to create a business process management that is secure, that came with your equipment.

98 private schools in Abu Dhabi 03.29.15 at 1:43 am

You’ve made a decision to give your child British school private schools in Abu Dhabi Dhabi instruction. With all these options, how do find the proper
one to fit your kid’s requirements? Arm yourself with a lengthy set of inquiries the initiatives
are to consider your priorities and start setting visits up.
Your child’s education is too important not to take some time to decide on the ideal suit.

99 floor plans 03.31.15 at 6:03 pm

You are prepared to select a house plan for your dream home
once you’ve bought the property that you plan to build
on. If you are seeking to purchase a pre-made dwelling plan, you may
have as your thoughts may not fit into what is accessible, to create some little compromises.
Another option would be to buy a pre-made house floor plans and later have it altered to suit tastes and your particular needs by an architect.
Do understand this will not be without a rather ample expense it can still be more affordable than if you
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