Know What to Look for When You Purchase Carfax Reports

Initially launched in 1984, Carfax has come a long way in just over three decades. Originally introduced as a way for dealers to stop odometer fraud, Carfax now offers reports to both consumers and businesses alike. However, when you are in the market for a new vehicle, if you’ve never used a Carfax report to help you weed out potential lemons, how will you know what you are looking for on the report? Now that Carfax offers a comprehensive report about vehicles that includes vehicle data from all 50 states, you can rest assured knowing that your next purchase is the right car for you, and it doesn’t threaten the state of your car insurance due to maintenance issues.

Carfax Informs You about Accidents

One of the most significant components of a Carfax report is the accident section. If an accident has been reported on a vehicle, it will be noted here. When you know whether a car has been in an accident, you can learn more about the car you are purchasing. In fact, learning that it has been in an accident may be a reason not to buy a car since you can reasonably assume a wrecked vehicle might be more likely to require future repairs. By simply avoiding a wrecked car, you can reduce future maintenance expenses.

Carfax Allows You to Determine the Extent of Your Service History

Another not-so-obvious benefit of a Carfax report is the service history section. Yes, the service history demonstrates that the car was maintained or not, but to be useful, it’s important that you assess what type of service the vehicle had over the years. For instance, was the car taken to the dealership for regular oil changes or mechanical problems? There is a big difference between regular oil changes and mechanical problems, and it's possible that the vehicle with mechanical problems should be avoided to ensure you don’t have mechanical problems on the road that could lead to an accident and increased auto insurance rates.

Carfax Shows Ownership

An often overlooked tidbit about a Carfax report is the section about vehicle ownership. It’s important to know how many drivers owned your car because with a higher number of owners, there is an increased potential for problems down the road. Additionally, commercial vehicles, those belonging to a fleet, may have high miles; but if they received timely maintenance, the highway miles might not impact the value of the car so much.

Beyond purchasing a new vehicle, it’s important that you purchase a vehicle that is reliable. With a reliable vehicle, you can have peace of mind anytime someone is in your vehicle. Additionally, you can reduce the cost of your auto insurance by purchasing a structurally-sound vehicle.