What Is a CARFAX Report?

A CARFAX report is a comprehensive vehicle history that helps ensure that you are purchasing a car or truck that has no pre-existing problems or issues. This can prevent you from getting stuck on a lemon, help you negotiate a reasonable price, and generally give you more peace of mind about your investment.

A CARFAX report can be particularly important if you are purchasing a used car from a third party.

What is a CARFAX report?

CARFAX is dedicated to collecting data on cars and trucks. It contains all this information in a database. Enter a vehicle identification number (VIN) into the database and the pertinent information about that vehicle will be grouped into a CARFAX report.

The CARFAX database reportedly maintains more than 6 billion vehicle records.

Anyone interested in buying a used car can provide their VIN and pay CARFAX to obtain a variety of information about the vehicle, from who owned it to accidents or flood damage and mileage records.

How does a CARFAX report work?

A CARFAX report includes several important areas of information. The information section of the title is considered the most reliable because this information is registered with the state Departments of Motor Vehicles. You can be sure that the person you are buying the vehicle from is who, according to CARFAX, is actually the owner.

The CARFAX report will also list the last mileage reported on the vehicle's odometer. Some fluctuation can be expected here, but it is a red flag if the reported number is drastically different than what you see on the actual odometer.

Ideally, you want a vehicle that has the fewest previous owners when buying a used car. This usually indicates that the vehicle has had no problems and has been in the same hands for a long time.

CARFAX uses more than 100,000 data sources together to compile a comprehensive list of any accidents or damage caused to vehicles. Your sources are reliable and include auto repair shops, police departments, and insurance companies.

A CARFAX report will tell you if the car was used by an individual driver, for rental, carpool, or for business purposes. Commercial and car-sharing vehicles tend to wear out a lot more, so it's important to know if you're getting into that.

You will also see information in the CARFAX report if the vehicle was picked up or a part was picked up.

Limitations of CARFAX reports

A "clean" report means that CARFAX has not found any significant problems, but it is not as simple as a big green "CLEAN" message written across the top. There may be information that CARFAX does not have access to. There are several issues that you will not see in a report that, however, can be critical to your purchase because unscrupulous people can take steps to prevent the information from appearing in public records.

CARFAX relies on local police departments for its accident data. The report is likely to be very accurate if you are purchasing a vehicle that has only been driven in a large metropolitan area, but some accidents may not have been reported if you are purchasing in a small city. And accidents that occurred in the last few days will not appear in the report either.

It is unlikely to be an accident if a shop, rather than a police department, reports an incident to CARFAX. Auto repair shops tend to report what they fixed, not what happened to make the repair necessary. You can indicate that the vehicle has been on an undeclared fender if you notice that a bumper has been replaced, but there is no corresponding information in the CARFAX report.

Do I have to pay for a Carfax report?

Be sure to independently inspect and test the vehicle before deciding to buy it. A CARFAX report can be a valuable tool, but it shouldn't be the only one in your arsenal. It is not a substitute for the opinion of an expert.

You can order a single CARFAX report and view it online for $ 39.99 in 2020. You can also purchase multiple reports at a discount.

Enjoy Watching This Video About Carfax Report

Source: YAA (formerly Your Auto Advocate)

Did you find this post useful or inspiring? Save THIS PIN to your Finances Board on Pinterest! :sonrojo:

Ok, That is all for now…

If you enjoyed this article please, Share and Like it. Thanks.
See you in the next post, Have a Wonderful Day!

You may also like 👇🏼👇🏼

Go up