Do You Need Carfax Reports Before Buying Used Cars?

Do You Need CARFAX Reports Before Buying Used Cars?

by

aabbey

Many dealerships that sell used cars offer their customers free CARFAX reports. If they don’t, then many customers purchase the reports on their own. While a CARFAX report can provide some information about vehicle history, it may not provide enough information to justify the purchase of a pre-owned vehicle.

Where Does CARFAX Get Its Information?

A number of different agencies, businesses, and other entities report information to CARFAX regarding the history of a car. Some of these include:

– Motor vehicle departments or Canadian provincial motor vehicle agencies

– Car dealerships, service/maintenance facilities, and collision repair shops

– Law enforcement agencies

– Insurance companies

– Salvage auctions and auto recyclers

– Manufacturers

– Import/export companies

Does CARFAX Provide a Complete Vehicle History?

CARFAX depends on others to supply them with information. If the department doesn’t report an accident or an event in the car’s history to CARFAX, then CARFAX doesn’t have a way to obtain the information. While the company maintains an extensive database on vehicles, it simply cannot record every auto accident that occurs.

Also, keep in mind that some CARFAX reports, like credit reports, may contain errors. For example, a minor fender bender repaired using money from the other driver’s insurance company may be reported to CARFAX as a multiple vehicle accident.

Always remember that CARFAX gets information from reliable sources. However, it only receives the information and documents it in its database of used cars. The company neither verifies the information nor researches specific vehicles.

How Should Buyers Use a CARFAX Report?

Consider starting a CARFAX subscription when you start looking at vehicles. That way, you can access multiple reports as you view different automobiles. Many online advertisements for used cars disclose the vehicle’s VIN number. Simply type the number into the CARFAX database, and CARFAX should produce a report. A dealer may supply a free CARFAX report, but make sure to check the date. If the report is outdated, or if a dealer refuses to run a report, then you should probably choose another car.

Once you have a report in hand, you may notice some issues in addition to past accidents. The report should show you how many owners the car has had. In addition, you’ll see how many state motor vehicle departments registered the vehicle. You may also see odometer readings as well as information about lemon law buybacks and vehicle parts recalls. Check the odometer readings to make sure that they sequentially increase. Any discrepancies could indicate that a previous owner or dealer rolled back the odometer.

Also, check to see whether the accidents correspond with existing salvage titles. You may test drive a car and think it’s in good mechanical condition, but underlying damage may mean that the car is unreliable. If you see a salvage title on the CARFAX report, then avoid buying the car. Alternatively, if you see accident damage, then make sure to ask your mechanic to inspect the vehicle.

The Bottom Line

CARFAX reports are good introductory tools when you’re looking at different used cars to purchase. However, the information in a CARFAX report can’t replace an inspection performed by a trusted mechanic.

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Do You Need CARFAX Reports Before Buying Used Cars?