What You Need To Know About Carfax

Overview

When you’re shopping for a used car, knowing the history of the vehicle is crucial. It can be the difference between purchasing a reliable vehicle or inheriting an expensive problem. One of the most trusted sources for understanding a car’s past is Carfax. A Carfax Vehicle History Report provides comprehensive details about a used car, including accident history, mileage, title status, and more. But what exactly is Carfax, and how can you use it to make informed decisions?

In this article, we’ll explain everything you need to know about Carfax USA from how it works to interpreting the report, and how to use it when buying a used car.

What is Carfax?

Carfax is a company that provides vehicle history reports to help consumers make better purchasing decisions. It collects data from various sources, such as DMVs, police reports, insurance companies, repair shops, and more, to create a detailed report on a vehicle’s past. The main goal of Carfax is to give buyers transparency about a vehicle’s history, ensuring that they are fully informed before committing to a purchase.

What Does a Carfax Report Include?

A Carfax Vehicle History Report includes several key sections that highlight important aspects of a vehicle’s history. Let’s break down the main components of the report:

Section	What It Includes	Importance
Accident History	Details of any accidents, including the severity, airbag deployment, and repairs.	Helps assess the vehicle’s safety, reliability, and resale value.
Odometer Information	Records of the car’s mileage, including potential discrepancies or rollbacks.	Ensures the car hasn’t had its odometer tampered with.
Title History	Information about the car’s title, including whether it has a salvage or rebuilt title.	Affects the car’s market value, insurability, and safety.
Service History	Maintenance and repair records, including oil changes, tire rotations, and more.	Indicates how well the car has been maintained.
Recall Information	Data on any safety recalls issued for the car and whether repairs have been completed.	Helps ensure the car is up to current safety standards.
Previous Owners	Information about the number of previous owners and how long they owned the vehicle.	Can give insight into the car’s usage and potential wear.
Flood, Fire, and Other Damage	Records if the car has been damaged by flooding, fire, or other extreme conditions.	Critical to determine whether the car has sustained major damage.

How Does Carfax Gather Information?

Carfax collects data from various sources to create its reports. These sources include:

1. State DMVs

State Departments of Motor Vehicles (DMVs) provide Carfax with title and registration information. This helps verify whether the car has been declared a total loss (salvage) or rebuilt after an accident.

• Example: If a car is involved in an accident and is deemed a total loss by the insurance company, the DMV will issue a salvage title. Carfax will then include this information in the vehicle’s history.
  

2. Insurance Companies

Insurance companies report any accidents or claims made on a vehicle. If the car has been involved in a collision and insurance was filed, Carfax can include this in the report. This also includes details about whether the car was totaled after an accident.

• Example: If a car is hit and the damage is extensive, the insurance company may declare it a total loss. This will appear as a salvage title or accident record in the Carfax report.
  

3. Auto Repair Shops

Repair shops provide Carfax with records about any collision repairs, bodywork, or mechanical fixes performed on the vehicle. This is especially important for checking if the car has been in a serious accident or has sustained significant damage.

• Example: After a fender bender, the car is taken to a body shop for repairs. The body shop submits repair details to Carfax, which then updates the report to reflect the damage.
  

4. Police Departments

When police respond to an accident scene, they file a report, which is often included in the Carfax report. This provides details about the incident, including the severity of the crash.

• Example: A car is involved in a rear-end collision, and the police file a report. Carfax may use this report to document the incident in the vehicle history.
  

5. Car Dealerships and Auction Houses

Dealerships and auction houses often submit vehicle information to Carfax, especially for used cars. This helps keep the report updated, particularly if the car was previously owned or sold through a dealership.

• Example: A car is sold at auction after being declared a total loss. The auction house submits the details to Carfax, noting the salvage title.
  

6. Vehicle Manufacturers

Manufacturers provide information regarding recalls and any significant safety defects. If a vehicle is recalled for a safety issue, Carfax will reflect this in the report.

• Example: If a manufacturer recalls a vehicle for a faulty airbag, Carfax will include this information in the recall section of the report.
  

How to Read a Carfax Report

A cheap Carfax report can contain a lot of information, but it’s important to know how to interpret it. Here are some key points to consider when reviewing the report:

1. Accident History

Check for any accidents or damages reported. While a minor accident might not significantly affect the vehicle’s performance, major accidents (e.g., frame damage, airbag deployment) can lead to serious safety issues. Always ask the seller for more details if you see any significant accidents listed.

• Example: If the report shows that the car was involved in a major collision where airbags were deployed, this may indicate significant internal damage. It’s advisable to have the car thoroughly inspected before buying.
  

2. Odometer Rollback

Look for any signs of odometer discrepancies. Carfax tracks mileage reported at various points in time. If the mileage doesn’t add up (for example, the car shows a sudden drop in mileage), it could be an indication of odometer tampering.

• Example: A car that shows 20,000 miles in 2015, but 40,000 miles in 2017 and then 10,000 miles in 2018 could suggest that the odometer was rolled back. This should raise a red flag.
  

3. Title History

Pay attention to whether the car has a clean title or if it has been branded as salvage, rebuilt, or flooded. Cars with these titles may have sustained significant damage and could have issues with insurability.

• Example: A car with a salvage title means it was written off by an insurance company after a major accident, and it has been rebuilt. You should be cautious with these vehicles, as they may not be as reliable or safe as a car with a clean title.
  

4. Service and Maintenance History

Check the service history to see if the car has been regularly maintained. Regular oil changes, tire rotations, and other maintenance records indicate that the car was well cared for.

• Example: If the report shows consistent oil changes and maintenance, it’s a good sign that the car was properly maintained. However, a lack of service records might suggest neglect.
  

5. Recall Information

Look for any recalls listed on the report. If the vehicle has an outstanding recall, check whether it has been addressed or repaired. Cars with unresolved recalls may pose safety risks.

• Example: If the report lists a recall for defective brakes, verify that the issue has been addressed before purchasing.
  

Example of a Carfax Report Summary

Vehicle: 2016 Honda Civic
Odometer Reading: 58,000 miles
Accident History:

• 2017: Minor front-end collision. Damage to the bumper, repaired by a certified body shop.
  
• 2019: No accidents reported.
  

Title History:

• 2016: Clean title issued.
  
• 2019: No title issues reported.
  

Service History:

• 2016-2020: Regular oil changes, tire rotations, and brake maintenance performed.
  

Recalls:

• 2017: Recall for airbag inflator replacement, completed.
  

Conclusion

Carfax is a powerful tool that helps you make informed decisions when buying a used car. By providing insights into the vehicle’s accident history, service records, title status, and more, Carfax helps you assess whether a car is worth the investment. However, it’s important to remember that Carfax doesn’t have a complete history of every car, so it’s always a good idea to get the car inspected by a trusted mechanic and do your own research.

Ultimately, understanding the details in a Carfax report can give you the confidence to make a well-informed purchase and avoid the pitfalls of buying a problematic vehicle.