The Importance of Vehicle History Reports (2024)

The Importance of Vehicle History Reports (1)

When it comes to our health, safety, and investments, research is paramount. We research the backgrounds of our doctors, babysitters, and homes. The same holds true for cars. Cars can have secrets, and if you don't know where to find the truth, they can cause you a lot of grief. Studying vehicle history reports helps you buy a vehicle that provides years of reliable and safe transportation.


These reports contain a wealth of data about a car's damage history, true mileage, maintenance records, and possible recalls. While they may not say "lemon" outright, they can alert you to possible problems. They're also referred to as a vehicle identification number (VIN) check and include different levels of information you can access depending on what you wish to pay.

Where you can get one

The Importance of Vehicle History Reports (2)Safety agencies such as your state's DMV, National Highway Transportation Safety Administration or the National Insurance Crime Bureau often provide free VIN checks. These checks are limited in scope but still inform you about the vehicle's title status and whether it has ever been listed as stolen but not recovered or as a salvage vehicle. Another place to get a free VIN check is at an automotive dealership. These businesses often have multiple subscriptions to car history services and can provide a copy for the vehicle you are interested in The Importance of Vehicle History Reports (3)at no charge. Be alert for dealers who either will not show you a report or provide an outdated copy. This is a sign that they may be trying to conceal something important.


Paid reports are far more thorough than their free counterparts. They range in cost from $25 for a single report to $100 for hundreds of reports in a three-week span. These reports cover information such as flood damage, airbag deployments, past owners, odometer rollbacks, and any liens held on the vehicle. Let's take a closer look at these factors and their importance.

What's in a vehicle history report?

  • The Importance of Vehicle History Reports (4)Flood damage. A vehicle that has been subjected to flooding may look pristine but have serious issues with corrosion, brakes, and electronic systems (including airbag sensors). Cars with significant flood damage should be retitled as salvage or flood vehicles. They are not legal to sell to consumers in most situations unless the appropriate repairs are made, they are inspected by officials and they are titled as "rebuilt."
  • Airbag deployments. Deployment of an airbag indicates that the vehicle was in a severe accident. While the damage may have been repaired visually, there could be lingering issues with the frame, drivetrain, or electronics. Additionally, a buyer would want to know if the airbags were repaired and reinspected properly.
  • Past owners. A vehicle that was used commercially should say so in the title history. A vehicle used for a rental or construction company, for example, would probably have higher levels of usage or abuse than a privately owned vehicle with the same mileage.
  • Odometer rollbacks. Some unscrupulous sellers change odometer readings to make the car appear to have lower mileage. This may be accompanied by other fraudulent activities such as title manipulation, undisclosed reconditioning, and duplicate state DMV certificates. Rolling back an odometer is a felony in the United States.
  • The Importance of Vehicle History Reports (5)Liens. When someone takes a loan out against the title of their vehicle, it can cause problems for future buyers. In some cases, the lender owns the title, and the buyer will have no knowledge unless they run a VIN check. Unless rectified, this situation can allow the titleholder to demand payment of the remaining debt or even repossess the vehicle.

We provide vehicle history reports free of charge for your peace of mind. Feel free to stop in and take a look at our inventory. You'll be sure to find a vehicle with a clean history that fits your needs.

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The Importance of Vehicle History Reports (2024)

FAQs

The Importance of Vehicle History Reports? ›

Odometer reading: A vehicle history report can be used to determine how many miles are actually on a car even if it doesn't match up with the odometer reading provided by the seller or displayed by other sources. Salvage title: A vehicle history report can be used to find out if a car has a salvage title.

Why are vehicle history reports important? ›

Studying vehicle history reports helps you buy a vehicle that provides years of reliable and safe transportation. These reports contain a wealth of data about a car's damage history, true mileage, maintenance records, and possible recalls.

How reliable is vehicle history report? ›

A vehicle history report can give you a generally accurate glimpse into your car's past — how it was maintained, records of accidents it's been in and the like. But errors can occur, and what's more, there are scams associated with these reports that target consumers buying or selling used cars.

Why it's a good idea to get a Carfax vehicle history report? ›

Carfax states that their vehicle history report can identify potential odometer fraud. A Carfax report can help ensure that the car you are buying has a clean title. While there are lemon laws that protect unknowing consumers, paying a small amount of money is worth avoiding the legal headache.

Why is vehicle data important? ›

Without being able to track driving habits and patterns, insurers may be more likely to be taken advantage of by fraudulent claims. This can also lead to higher premiums for all drivers. The use of vehicle data is essential for accurate and efficient auto insurance claims.

What are the top two items that you believe are important when examining a vehicle history report before buying a used car? ›

1) Junk, Salvage, and Loss Events
  • 1) Junk, Salvage, and Loss Events. This one is a major red flag. ...
  • 2) Other Damage. The vehicle history report will clue you in on more than just major accidents. ...
  • 3) Odometer. The difference between a car with 10,000 and 100,000 miles is thousands of dollars. ...
  • 4) Title Information. ...
  • 5) Recalls.

How important is a clean Carfax? ›

This ensures a smooth transaction. A clean CARFAX® report means the vehicle has a clean car title and that no major issues have been reported with the vehicle. No outstanding liens are present. There has been no salvage, rebuild, or recall from the National Highway Traffic Safety Administration.

Which car history report is best? ›

Carfax is the most well-known provider of vehicle history reports.

What happens if a Carfax report is wrong? ›

If there's information you believe is flat-out wrong on your vehicle-history report, file a Carfax dispute . A Carfax VIN check and a follow-up with the company's team of researchers can potentially save you money and spare you headaches.

Is Carfax 100 accurate? ›

Carfax reliability: only as good as the data they receive

Carfax entirely relies on their network of dealers, mechanics, and service centers to provide accurate information about vehicles. Unfortunately, that means relying on human beings that are busy and overworked to get things right 100% of the time.

What are 3 pieces of information you can gain from a Carfax report? ›

It includes information such as accidents, repairs, ownership history, and more. This report is created using data from various sources, including state DMVs, insurance companies, and auto repair shops.

What does Carfax not tell you? ›

Unreported Accidents

If a car was in an accident and it was not reported to an insurance company or the police, you won't see it in the CarFax report. Ultimately, a good repair shop can help you assess a vehicle's condition if you suspect it's been in an accident.

What is the truth about Carfax? ›

CARFAX Reports Are Often Incomplete and Inaccurate. CARFAX Reports Are Limited. CARFAX reports are limited to information that has been reported about the vehicle so they may be incomplete. If an accident, repair or flood damage was not reported, it will not appear in the report.

Why is the VIN important to a car? ›

Why is a VIN so important? Your car's VIN is an essential identifier for you, your insurance company, and your mechanic. Think of it as your car's history—everything from an accident to an oil change gets recorded using the vehicle identification number.

What is the purpose of vehicle data recorders? ›

Event Data Recorders, or EDRs, can store data such as vehicle speed, driver steering, and brake application for up to several seconds before a collision, as well as data like collision severity during a collision.

Why is vehicle systems forensics useful today? ›

You can tell a lot about someone from the car they drive. The data that many vehicles now collect can reveal the patterns of our daily lives and provide insights into our behavior and actions. This data could be invaluable data that supports case work.

Why are cars important to history? ›

The automobile gave people more personal freedom and access to jobs and services. It led to development of better roads and transportation. Industries and new jobs developed to supply the demand for automobile parts and fuel. These included petroleum and gasoline, rubber, and then plastics.

Why is it important to check the VIN? ›

It's important to do an insurance check with the VIN number before purchasing a previously owned vehicle. Without one of these checks, you run the risk of buying a vehicle with a history of accidents and/or mechanical issues.

Why is it important to inspect the vehicle? ›

Car Inspection Benefits and Importance

Car checks help you identify whether the components of your car are in good shape or not. This helps you save your vehicle from any unforeseen damages, making sure you don't have to worry about costly repairs or replacements.

What is the overall purpose of the service VIN share report? ›

Vehicle History Reports: Services that offer vehicle history reports rely on VINs to compile information on a vehicle's accident history, ownership over time, mileage records, and title status. These reports provide buyers with vital information to assess a vehicle's condition and make reliable purchasing decisions.

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