How reliable is a Carfax report?
What is Carfax, and what is its intended purpose?
Carfax Inc. is a web service that supplies vehicle history reports to individuals and businesses on used cars and light trucks for American and Canadian consumers.
Where does Carfax get the vehicle history reports it supplies?
Carfax relies on external sources for vehicle history. Because of this reliance, only a small percentage of accidents and repairs are reported. This means that a Carfax vehicle history report can be missing important information that you would want to know.
The official Carfax website confirms that their reports rely on information from U.S. and Canadian motor vehicle agencies, car repair facilities, law enforcement agencies, and insurance companies. However, Carfax cautions that not all accidents or issues are reported to them, which can result in incomplete reports. On the Carfax website, you can find this disclosure,
"CARFAX Vehicle History products and services are based only on information supplied to CARFAX. CARFAX does not have the complete history of every vehicle. Use the CARFAX search as one important tool, along with a vehicle inspection and test drive, to make a better decision about your next used car."
Carfax does not have all accidents and damage reports on file. As many have never been reported or may have been reported to agencies that Carfax does not have agreements with. Carfax recommends that all cars be inspected by a certified mechanic before purchase to ensure the vehicle is functioning properly and to be checked for signs of unreported damage.
An example of unreported damage would be if a car is in a minor accident and taken to a repair shop without involving law enforcement, it may never get reported to Carfax. If a shop does not have an agreement with Carfax to proactively send accident reports, the information will never be supplied to Carfax. Therefore it will not be on a Carfax report.
Additionally, repairs like replacing electric windows, repacking airbags, fixing the front end, or addressing underside damage are often not reported to Carfax. Even major repairs, such as engine or transmission work, will likely not be reflected in a Carfax report. This is why it is important to do your own research and have a trusted mechanic inspect the vehicle. This is especially crucial if you are buying a used vehicle from a dealership. Dealerships might not know of or disclose negative information about the car.
Here are a few tips to help you discover prior damage and make an informed decision:
· Take a complete walk around the car and inspect it closely. Look for gaps around the doors that do not look uniform or differences in paint shade or texture—these are signs of prior body repair.
· Front-end damage is common. Check if the hood closes tightly on all sides. Look for uneven gaps around the headlights.
· Inspect uneven tire wear, uncentered steering wheel, or pulling to one side while driving. These are all signs of suspension damage which can be caused by a major accident.
· Roll up and down each window a few times while the doors are closed. Watch and listen for any drag or binding.
· Whenever possible, try to buy directly from the original owner of a vehicle so you can ask for the full vehicle history.
· Ask the current owner, "Has the vehicle had any repairs done to it?" People often remember damages when asked directly.
Taking the time to do thorough research will save you money and headaches in the long run.
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