What is CARFAX? Information for Buyers and Sellers

What is CARFAX? Information for Buyers and Sellers

A CARFAX report is a detailed report of the car’s history that you can find on carfax.com . You just need to know the VIN number of the car to get the CARFAX report. Usually, a CARFAX report costs $39.99, but often you can get a free CARFAX report if you buy a car from the dealership.

Indy Auto Man has a free CARFAX report on all vehicles that are listed on the website inventory . If you are from Indianapolis and want to check a CARFAX report on one of the vehicles, you need to follow Indy Auto Man on Facebook and ask them about the CARFAX report. Then Indy Auto Man will send you a free CARFAX report. If you are not from Indiana, then you can still try to ask a local dealership, and maybe they will help you to get a free CARFAX report.

The data for the CARFAX report is usually collected from car insurance providers,  police reports, repair companies, and Bureaus of Motor Vehicles (BMV). The report is written in chronological order and has an additional description. The CARFAX report has four sections, with some subsections:

• Vehicle History Report : provides you with detailed information about the car and everything that happened to it. This section has four subsections and a glossary at the end. Below, we will explain what information you can find in each section:
  • Ownership History. This subsection will give you information about the previous owners of the car. You will find out how many owners the car had, when they bought a car, how long they had a car and the mileage that they drove on it.
  • Title History. This subsection will tell you if a car has one of these statuses:
    • Salvage : Whether the vehicle is a salvaged vehicle, not roadworthy, or the repair costs exceed 75% of its pre-damage value. Generally, it cannot be titled in the issuing state again.
    • Junk : Similar to a salvage title
    • Rebuilt : A salvage or junk vehicle that has been rebuilt
    • Fire : Vehicle damage caused by a fire that exceeds its fair market value
    • Flood : The vehicle was severely damaged by water
    • Hail : Hail damage to the vehicle exceeded its fair market value that exceeds its fair market value
    • Lemon : Used when the vehicle manufacturer buys back the vehicle because there are too many issues
    • Not actual mileage : The vehicle seller certifies the mileage on the title when selling the vehicle. This is used when the seller cannot verify or certify the exact mileage.
    • Mileage mechanical limit exceeded : Some odometers cannot roll past 99,999 miles. This indicates the odometer has exceeded its ability to track mileage.
  • Additional History. This subsection talks about accidents and issues that a car may have.
    • A declaration of total loss
    • Any structural damages
    • An airbag deployment
    • An odometer check
    • Any accidents or other damages
    • Recalls from the manufacturer
    • The original warranty information
  • Detailed History . This subsection provides you with a detailed history of the car. That includes dates of all inspections, repairs, vehicle services, title registrations, accidents, and damage if any, and the description of all the above. Also, you will know the date the car was offered for sale.
• Vehicle Highlights. This section highlights the main facts about the car.
• Warranty Check . This section talks about warranties and provides you with information on when the warranty expired or expires, and if there were any repairs or vehicle checks under the warranty.
• Buyback Guarantee. This section helps protect consumers from unknowingly buying a vehicle with a DMV-issued title brand, such as Salvage, Junk, Rebuilt, Fire, Flood, Hail, Lemon/Manufacturer Buyback, Not Actual Mileage, or Exceeds Mechanical Limits. If you find that any of these title problems were reported by a DMV and not included in this report, CARFAX will buy this vehicle back according to the terms and conditions of the Guarantee. ( carfax.com )

How to read the CARFAX report:

Both the buyer and the seller need to know how to read the CARFAX report. Buyers should check the vehicle history before buying the car. They will use it to check the car, and they can use some details from the CARFAX report in negotiation with the seller.

The seller can also benefit from reading the CARFAX report for a car that he/she wants to sell. A properly maintained vehicle with a clean service/repair history will fetch a higher price, especially if you show proof of this on paper. It is important to have documents of all the repairs that you or the previous owner did. Knowing the history of the vehicle can help with the negotiation process and prepare you to answer questions from the buyer.

When you read the CARFAX report, you need to go through all the sections and subsections that we listed above. Pay close attention to the ownership. It is better when a car has a few owners. One-owner cars are more valuable than cars that have multiple owners. Also, pay attention to how the car was used before, whether it was used for personal use, rent, or commercial. Do not forget to check the title information. Avoid cars that have salvage, junk, rebuilt, fire, flood, hail, or lemon title status. Check the mileage information. The mileage should go up in sequence throughout the report. If not, the odometer may have been rolled back. Look for the accident history and if the car was involved in any accidents, check the area of damage, the status of it (minor, moderate, severe), and the description. Check the history of repairs and vehicle service. It is better when a car has been regularly checked and properly maintained.
However, the CARFAX report is not the only one that you can check. You can check the Autocheck report. Here you can find more information about the Autocheck report and the difference between the CARFAX report .

If you are from Indianapolis and want to check a CARFAX report on one of the vehicles, you need to follow Indy Auto Man on Facebook and ask them about the CARFAX report. Then Indy Auto Man will send you a free CARFAX report. If you are not from Indiana, then you can still try to ask a local dealership, and maybe they will help you to get a free CARFAX report.