A car history report provides clues regarding whether or not you are purchasing a lemon, the dealer is trustworthy or the individual seller is telling the truth.
Retrieving a Report
Car history reports can easily be retrieved online, but make sure you use a reputable source. CarFax is a widely trusted site for retrieving car history reports, for example. Finding information about a particular car requires a vehicle identification number (VIN), which is typically located on the dashboard of a car. You might also find it on the engine block or printed on the front of the frame.
Costs
Most websites charge between $20 and $30 for a single car history report. Some sites also offer subscription services, which is a good choice if you know you might take a few months to find the car you want. Be suspicious of any sites that offer free car history reports (you will end up paying for them eventually) or reports for an unreasonable sum of money.
Parts of the Report
The first section in a car history report pertains to the specific car you are inquiring about. Ensure that all aspects match the advertised listing, including make, model, engine size and condition. Also note whether or not the car has had any major accidents.
Another section often featured on car history reports contains general information about the make and model of the car. This is information pertaining to all cars of that particular make and model, and not particularly the one you are purchasing. This is helpful if you are not familiar with the type of car you are purchasing.
Last, you will find the ownership history. This contains several key sections, detailed below.
Ownership History
The ownership report contains vital information specifically about the car you are considering purchasing. In this report, you'll find:
* The estimated mileage and last odometer reading. Compare this to the reported mileage to make sure there are no discrepancies.
* Title report. This lets you know if the car is legally owned by the seller, rather than stolen.
* Salvage/junk report. Cars that have been salvaged or junked have been severely damaged in the past and may have lasting issues with reliability and safety. Avoid these cars.
* Fire, flood or hail damage. Cars rarely recover from damage such as fire and flood, and issues can manifest themselves later down the road. Take any history of fire, flood or hail into consideration.
* Exceeds mechanical limit. This is an industry term for cars whose odometers don't read above a certain digit. For example, if a car's odometer can read only five digits and says 35,965 miles, the actual mileage is 135,965 miles.
* Accident report. This section lets you know if the car has been in any major accidents and if it still needs major repairs.
* Warranty report. This lets you know if the car is still covered by the manufacturer's warranty.
Considerations
While online car history reports can be extremely useful tools, they are not necessarily the final word on whether or not you should buy a car. Use the car history report and your own good judgment when buying a used car.
If you are buying a car from an individual rather than a dealership, you might want to consider doing more than one car history report from more than one source. Established used car dealerships must follow certain rules and regulations that individuals don't have to follow, so be extra careful when buying a car from an individual.
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