A CARFAX report provides the known history of any vehicle based on the 17-character Vehicle Identification Number (VIN). If you’re in the market for a used car, a CARFAX report is a valuable source of information regarding a car’s maintenance history, accidents, damage, use, and more. Read on to learn everything you need to know about CARFAX reports.
Information Covered by a CARFAX Report
CARFAX reports provide a wealth of information about a vehicle that can help when deciding whether to buy it, including:
1. Accident Data
A CARFAX includes all reported accidents involving the vehicle. The report also includes details such as the severity of the damage, damage location, repair records, air bag deployment, and structural damage. Collision repair shops, law enforcement agencies, insurance companies, and rental companies provide CARFAX with accident information.
2. Service History
CARFAX reports include all recorded maintenance records. Service records usually include oil changes, tire rotations, brake replacement, transmission replacement, safety inspections, and any open recalls. Service history information comes from maintenance facilities, rental companies, inspection stations, extended warranty companies, and vehicle manufacturers.
3. Type of Use
A vehicle’s use history can tell you a lot about the amount of wear and tear on a car. A personal car has one owner. Rental, leased, or commercial vehicles are used by many people and usually have a lot more miles on the odometer. The CARFAX will also indicate if a car was a taxi or police vehicle. Rental companies, taxi companies, and law enforcement agencies provide information on a car’s use history.
4. Ownership History
A CARFAX report can tell you how many people have owned the car, where the car was used, and how long each owner held the car. Vehicle import/export companies and North American motor vehicle agencies provide ownership information.
5. Branded Titles
Each CARFAX includes any title issues associated with a vehicle. This is perhaps the most important portion of the report, as title issues can indicate serious problems with a vehicle’s mechanical systems, structural components, or legal status. Common branded titles include:
- Salvage title: A salvage title is issued to cars with damages that cost more than 75% of the car’s value to repair. The percentage varies by state, but most states give a salvage title to cars that are not road-worthy and unable to be titled again in their state. Cars reported as stolen in the states of Arizona, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oklahoma, and Oregon also receive salvage titles.
- Junk title: A junk title is often used interchangeably with salvage titles; it indicates a damaged and unsound vehicle.
- Rebuilt/reconstructed title: A rebuilt title is given to salvaged vehicles that have been rebuilt and made operational again. Vehicles with a rebuilt or reconstructed title have often been severely damaged in collisions and rebuilt using refurbished parts. Cars with this title must be inspected before being considered road-worthy.
- Fire title: A fire branding is given to vehicles that have sustained major fire damage.
- Flood title: A flood brand is given to vehicles that have a history of flood or other major water damage. This branding can be found in vehicles nationwide, as flood-damaged cases often get transported across state borders for sale.
- Hail title: Vehicles that have sustained major hail damage receive this title brand. Texas and other states do not issue title brands for hail damage.
- Lemon aka manufacturer buyback title: A lemon title is given to any vehicle the manufacturer bought back because of extensive mechanical issues. A lemon is considered defective and unsafe to drive.
- Not actual mileage: This is a warning included in the title search when a seller certifies that the odometer reading is inaccurate. Inaccuracies occur when an odometer has been broken, replaced, or tampered with.
- Exceeds mechanical limits: This warning shows up on vehicles if the odometer rolls over. This can occur when a car with a five-digit odometer exceeds 99,999 miles.
CARFAX gathers title branding information from many sources, including motor vehicle agencies, auto auctions, insurance companies, auto recyclers, vehicle manufacturers, and law enforcement.
Limitations of CARFAX Reports
Although they provide a wealth of information, CARFAX reports do have their limits. Not all states issue lemon titles, so a vehicle considered a lemon in one state will have a clear title in another. Although the average is 75% of a vehicle’s value, each state is free to determine how much damage a car must sustain before it receives a salvage title.
CARFAX reports only contain the information its sources provide. They might not include fender benders and unreported accidents in a car’s history, for instance. It also takes time for information to show up on a CARFAX. For example, a CARFAX will not include information on a stolen car if the incident occurred within a week of the report date.
If you’re hoping to purchase a classic car, a CARFAX won’t help you. CARFAX reports are unavailable for vehicles manufactured before 1981, the year the 17-character VIN system was standardized.
Because of these limitations, a CARFAX report should not be the only source of information when looking at a used vehicle. As a rule, it is best to use CARFAX information along with a test drive and an inspection by a trusted, qualified mechanic at a dealership.
How To Get a CARFAX Report
Used vehicle sellers and many car dealerships offer free CARFAX reports for used cars on their lots. If you don’t see a CARFAX for a car you’re interested in purchasing, most dealerships will provide it upon request.
If you’re buying or selling a used vehicle in a private sale, you will need to purchase a CARFAX report yourself. You can purchase reports individually or get a package of reports if you want to compare multiple vehicles.
Contact Rydell Outlet
A CARFAX report can help reduce the stress of buying a used vehicle. If you are in the market for a quality used vehicle, visit us at Rydell Auto Outlet. Our friendly, knowledgeable staff can help you find the perfect car.
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