A single CarFax report costs around $25, but a a 30-day unlimited account is available for just a little more…right around $30. Since the 30-day account is only a little more, there’s no real reason to buy a single report. With the unlimited account, you can pull reports for any VIN you want, and they come back instantly.

Although many, many consumer purchase CarFax reports, they don’t all use them to their full advantage. Knowing how to read the report will ensure that you are getting your money’s worth for the report:

Double Check the VIN

The VIN

Double check the vehicle identification number (VIN). It is located under the windshield on the driver’s side. Getting this correct is crucial to ensure that you are pulling the correct history report.

Standard Equipment/Safety Options:

This information can sometimes be useful to check that the car has it’s original options, and has not been rebuilt.  For example, if the car came standard with a CD changer, and there’s a single CD player in the car ( not a changer ), that can be a clue that something unusual may have happened to the car.

CarFax Safety and Reliability Report

This information isn’t about this specific car, but rather historical safety and reliability information for this model of car.   This can be helpful to determine if you’ve chosen the right model of car to purchase.

Safety information that’s included:

• NHTSA Crash Test Results
• IIHS Crash Test Results and Low Speed Damage Repair
• HLDI Injury, Collision, & Theft
• NHTSA Safety Recalls

Reliability information included:

• J.D. Power and Associates Ratings
• Identifix Reliability Ratings
• Information on Original Manufacturer’s Warranty
• Various Awards the model may have won

Ownership History: This is one of the most important sections, and fills you in on some really key information:

Owner Type: Was it a former rental car or fleet vehicle?  This can be both good and bad.  Fleet and rental vehicles get very regular maintenance, which is great, but they are also not always treated well by their drivers.

Car has moved across states:  Excessive movement could be an indicator that someone has moved the car to a state that is less stringent about reporting salvage titles.

Odometer Readings: Carfax will flag any situation where the mileage appears to have gone backwards over time…could indicate an attempt to “roll back” the odometer and make the car appear to have less miles on it than it really does.

Title Issues:

Salvage Title Example

Salvage: This is a vehicle that has been damaged to the point where it is worth less than 25 percent of it’s market value.  There is one class of Salvage title, however, that may not be a huge issue.  Several states report theft recoveries as “Salvage Events” on the title.  Even if the car suffered no damage, the title can get marked in this way.  Carfax does attempt to annotate these kinds of situations in the report.

Junk: Very similar to a salvage title. Many states use this type of title to denote a vehicle is not safe to be driven. Avoid purchasing a vehicle if the title history says “Junk” anywhere.

Rebuilt and/or Reconstructed: This is typically a car that’s been in a major accident, and repaired extensively.  If you are comfortable buying a car with this kind of history, do not pay blue book prices for it.  Cars with rebuilt titles typically sell for much, much less than an identical car without title issues.  Do consider safety, as most of these cars are rebuilt with 3rd party parts.  Additionally, most of the air bags usually deploy in an accident.  Do you trust that the rebuilder put the safety airbags back to full working order?

Fire/Flood: Avoid this kind of title.  Fire and Flood vehicles typically have issues with electrical systems, mysterious smells, or other hard to diagnose problems.  Even if the price is spectacular, it’s not usually worth the potential trouble.

Hail Damage: Hail damage doesn’t usually create any associated mechanical issues…it’s almost always a purely cosmetic problem.  If the body repairs were done correctly, you can often get a great deal on a former hail damaged car.   Be sure to have a mechanic and body shop inspect the car before you buy it.

Not Actual Mileage: Steer clear of this one.  This could mean the seller has stated that the odometer reading does not match the true mileage on the vehicle.  It could be something innocuous, like the failure and replacement of an odometer, but it could mean the odometer was tampered with.

Exceeds Mechanical Limit: Not an issue at all.  This just means that the vehicle has more miles than the odometer can display…many states label cars with this annotation after 100,000 miles, even if the odometer has more than six digits.  The mileage itself may be an issue for you, but this annotation really doesn’t hurt anything.

Odometer Rollback check: This is related to the last reported odometer mileage. Carfax sets this flag when it looks like there are conflicting reports about the actual mileage.  It could turn out to be nothing…like perhaps one mechanic at an oil change station incorrectly recorded the values.   But…be sure to find out what the issue is before you buy!

Total Loss Check: According to the experts at CarFax, not vehicles that have major damage receive a salvage title.  Carfax uses insurance claim records to tag vehicles that potentially have clear title, but also have a large claim that exceeds 75% of the vehicle’s market value.  If you see this mark…steer clear.

Frame Damage Check: Carfax puts this phrase in the report if there is actual, or suspected damage to the underlying frame or unibody in a car.   At the very least, it indicates the car went in for extensive body repair.   If your heart is set on buying the car, have a body shop check it out first.

Airbag Deployment Check: This one is a show stopper unless you have a real expert check out the car and verify that new airbags were installed correctly!

Accident Check: Many vehicles have been involved in accidents, and in fact, many of them in small parking lot skirmishes.   This isn’t a show stopper, but make sure that a mechanic certified in auto body issues check the car thoroughly before you buy.

Manufacturer Recall Check: If there are active recalls for the vehicle, Carfax will note them.  Don’t get overly concerned if there is a recall, but do make sure that the car has either been previously fixed in conjunction with the recall, or that you bring the car into the dealer to have the recall maintenance performed.

Basic Warranty Check: This is just a convenience note from Carfax…they check the year model of the car, the current date, and the length of the factory warranty, and let you know if the warranty has expired.

Only bringing a used car to an independent mechanic for a thorough inspection could tell consumers if they could expect a car to last. These inspections were expensive. Carfax saw the need for an easy and cheap way for buyers to learn more about a car before pulling their wallets out for a mechanical inspection. So, they entered the market in 1984 with vehicle history reports.

Vehicle History Reports: The Early Years

The Carfax service was pre-Internet, and the company sent vehicle history reports by fax. By the time the Internet opened up in 1995, business was good, with 100 million reports furnished. Carfax launched its Web presence in 1998 and continued to grow. Back then, Carfax was the only game in town. Most of Carfax’s business has been dealership based. The reports have become a bonus that dealers can offer to consumers who express doubts about buying a particular used car.

The Internet changed car buying forever. Suddenly, consumers could share information easily, getting all the information they needed to judge a car before arriving at the dealer’s lot. Carfax became a big part of that research process, although the pricing did not always make sense on a consumer level.

Carfax commonly negotiates prices with vendors, so individual consumers do not have the benefit of a simple pricing structure. In 2002, vehicle history reports became more consumer-focused with the entrance of AutoCheck into the market.

Owned by Experian, AutoCheck offers competitively priced reports on an individual basis for consumers. They can buy a single report, or an unlimited number of reports for one month, making AutoCheck a valuable tool for both car shoppers and dealers alike.

Simplicity for Consumers, In-Depth Reports for High-End Purchases

LeeAnn Shattuck is the “Chief Car Chick” at Women’s Automotive Solutions, a consulting firm that helps women buy cars through the entire car buying process in order to save time and money without the frustration of traditional car shopping. LeeAnn uses both Carfax and Auto Check, depending on the car she investigates. LeeAnn explains, ‘Just because a Carfax is “clean”, does not mean that the vehicle has not been in an accident. Conversely, an accident that is reported to Carfax may be very minor and not affect the quality of the car.’ In those cases, the reports are good negotiating tools for getting a better price on the car.

For this reason, says LeeAnn, buyers should always have the vehicle checked for prior damage and paintwork before committing to buy. Although vehicle history reports are supposed to show the maintenance history of a vehicle, it is rare to see the information displayed. “Most franchise dealerships report maintenance to Carfax, but not all vehicles are maintained by a dealer. The maintenance history of a vehicle is just as important (if not more) than accident history.”

An inspection by an independent mechanic (one who is trained to look for prior repairs/paint work as well as service history) is essential when purchasing a used vehicle. A vehicle history report is just the first place to start when researching a used vehicle.

LeeAnn believes that AutoCheck reports may be the best for most consumers because it provides the information in a simple, organized format that is easy for consumers to read. More expensive car purchases may warrant a Carfax because the report is more detailed, showing information that a professional car buyer might want to see.

Only as Good as the Information Source

Bike Lowell, co-founder of the auto advice website MyAutoTips.com agrees. “Carfax is not the end all be all – they don’t have all the records.” Having worked for Carfax, Bike understands how the information is collected. He explained that no vehicle history repot could have all of the information about a car. The reports are only as good as the information provided to them by state agencies and other sources.

If the information is entered incorrectly at the DMV, it will show up incorrectly on a vehicle history report. Despite this, Bike continues to have faith in vehicle history reports. He believes that recommending both Carfax and AutoCheck to buyers is part of his website’s mission of being there every step of the way for car buyers, from research, to checking out the car, selling, and financing.

Each Service Has its Advantages

Andrew Shipp, Business Development Manager at Cincinnati’s oldest car dealership, Busam Nissan also uses both vehicle history-reporting services. He explained that Carfax is used most often by his dealership because the name is instantly recognized by consumers. The dealership uses AutoCheck too, and has never had a problem with either service. He agrees that these reports are tools to begin the car-buying decision and that independent mechanical inspections are vital to making a good decision when looking at a used car. Each service has certain advantages over the other that should be considered.

While both companies report on the accident history of the car, AutoCheck seems to do a better job at reporting on accidents. The company has a more comprehensive relationship with car auction markets, giving them more information about cars sold at auction.

Carfax and AutoCheck are equally competent when reporting the car’s history on emissions. Consumers should look at the mileage on the car itself and compare it with the emissions report. A mismatch could spell trouble.

When it comes to readability, AutoCheck is the clear winner. The report offers a score for the car and compares that score with other vehicles of its kind. This gives the consumer a quick and easy comparison to decide if the car is worth the cost of the independent mechanical inspection needed before making a purchase. Although Carfax provides more details on car history, these details are unlikely to change the outcome of a buyer’s decision. Because the information is not organized in a simple formant, Carfax reports make sense for auto industry professionals, such as dealers considering whether to buy a particular car at auction.

Just like with any major purchase, researching and inspecting the car is the best way to be certain that it is the right car for the buyer’s needs. Careful inspection of the car by a mechanic is the best way to find out everything that has happened to the car. As a result, using one’s own mechanic to assess the car is the wisest course of action before purchasing it.

Sources:

AutoCheck – Where Accidents Get Reported.

Carfax – Show Me the Carfax.

Women’s Automotive Solutions – Car buying service dedicated to helping women.

MyAutoTips.com – Consumers’ #1 source of car buying information.

Busam Nissan – In business since 1909, Cincinnati’s oldest car dealership.

Carfax Steady Growth

In 1984, Carfax began to sell reports from the 10,000 vehicle records he had in his possession. Barnett late expanded his access to vehicle records to improve the business’s viability and profitability. After nine years, the company was able to obtain reports from all 50 states. Within 10 years time, Carfax had obtained more than 100 million vehicle records. In another 10 years, the company had grown to three billion records.

Currently, the company manages six billion vehicle records. This is a significant improvement from its inception in Columbia, Missouri. With its expansion and increased business, the vehicle has moved its headquarters to northern Virginia.

The Importance of Carfax Reports

Historically, unscrupulous sellers have tried to pass off previously wrecked cars as clean cars to sellers. Later, the owners discovered the damage and dissented. Carfax partners with auction houses to encourage them to provide all wreck information on the Carfax report. Now, collision repair centers, rental companies, insurance companies, fire departments, dealerships, law enforcement agencies, auction houses, state inspection stations and import/export companies all work together to ensure that the Carfax reports are comprehensive and accurate.

Even the United States government recognizes the value of Carfax. In 2009, they partnered with Carfax, the National Highway Traffic Safety Administration and Cash for Clunkers to register the Vehicle Identification Numbers (VINs) of 700,000 clunkers with Carfax as salvage vehicles. The law required that these vehicles have their engines removed and destroyed. This process ensured that none of the vehicles made it back to the public for sale. This was a monumental step for Carfax fighting this behavior.

What is Included in the Carfax Report?

Carfax founder Barnett has expanded the amount of information provided in the Carfax report. The VIN is required to retrieve the information listed in the report. Carfax reports typically include the following information:

Catastrophic Events. Previous accidents, flood damage, fire damage, hail damage or other catastrophes.

Previous Owners. The total number of owners and the length of ownership will be revealed on the report. The report may also reveal whether the vehicle was a member of a fleet or a rental car.

Total Loss. Information provided about the vehicle’s total loss status.

Lemon Status. These vehicles have been recalled or repurchased because of major damage.

Odometer Records. Odometer records guarantee the vehicle’s advertised mileage.

Service and Maintenance Records. Some reports provide detailed information about oil changes and major engine work.

Warranty Information. The report will inform the buyer if the vehicle is still under warranty.

Vehicle Rankings. Crash test results, reliability ratings and safety recalls may all be listed on the Carfax report.

Conclusion

Carfax has given customers 28 years of exceptional service and hopes to continue providing the same level of service they are traditionally known for. As the service grows, they find more information to provide to customers to aid them in their search for a pre-owned vehicle. Customers minimize their opportunity of being scammed if they obtain a Carfax report prior to purchasing a vehicle. Carfax promises to share all information that is provided to them on the report. They offer their customers all information that is provided to them by various organizations.

What is it?

The Autocheck score is a summary of all the very detailed facts contained in the rest of the report. It is most useful when you are comparing vehicles of similar age and class and want to do so at a glance.

The Autocheck score is a scale that starts at one and ends at one hundred but that number has to be used in conjunction with the Score Range to really paint the most accurate picture of the condition of the car you are considering investing in.

Here’s an example: a 1999 Nissan Maxima has a score of 84 and the score range is 76-81. On the other hand a 2005 Chevy Malibu scores an 89 but the score range for this vehicle is 90-95. If you go on the score only it might seem that the Chevy is a better car than the Maxima but that is not quite the case.

The Maxima actually scored higher than other similar models would have been expected to (that’s the Autocheck score range) while the Chevy, with its score of 89, didn’t quite make the cut and hit the 90-95 mark that other vehicles its class would. So if you look at the big picture the Maxima would seem to be the better bet.

How is it Calculated?

The Autocheck score is calculated using a number of different factors. Age is an issue (usually the older a car is the lower the core but that is not always the case) mileage, number of owners, the class of vehicle (pick-up trucks and family sedans are two very different creatures) and of course any accidents or major repairs the car has undergone are taken into consideration as well.

Some people wonder where Autocheck actually get all their data from. Data is compiled from many sources including the Department of Motor Vehicles, salvage yards/recycling facilities, auctions, insurance companies, police departments and government agencies like FEMA (who track storm damage). The Autocheck report is an Experian product and all the expertise they have built over the years as one of the nation’s three credit bureaus is put to great use here.