The Reliability of Carfax Reports and Vehicle History Reports
When you’re shopping for a used car, popular vehicle history reports like Carfax and Autocheck can be valuable by giving you a detailed accident and maintenance history.
But is Carfax Reliable? Yes and no…
These reports do have limitations and are not always as reliable as they may claim or appear to be!
Other Helpful Articles:
- How To Read A Carfax
- How Do I Get A Carfax For Free?
- Carfax Review
- 4 Major Problems With The Carfax Buyback Guarantee
Table of Contents
Carfax Report Reliability
Carfax is one of the most well-known vehicle history report providers and likely the most reliable, but its reliability is not without limitations:
- Data Accuracy: Carfax reports are only as reliable as the information they receive. The company relies on a network of over 112,000 data sources, including dealerships, repair shops, and insurance companies.
- Incomplete Information: Not all accidents, repairs, or maintenance records are reported to Carfax by their network of sources. Minor accidents or repairs paid out-of-pocket usually won’t appear on the report, which often is the intention of paying in cash.
- Delayed Updates: There can be a lag between when an event occurs and when it appears on a Carfax report.
- Human Error: The accuracy of Carfax reports can be affected by data entry errors from their sources. There have been instances where mechanics have input information about one car into another cars report by accident.
- Clean Report Limitations: A “clean” Carfax report doesn’t guarantee a problem-free vehicle. It’s possible for a car to have had significant damage or have mechanical issues without it being reflected in the report.
Overall Reliability of Vehicle History Reports
Vehicle history reports, in general, face similar challenges to Carfax:
- Limited Scope: Vehicle history reports can only provide information that has been reported to them. They may miss accidents or repairs that weren’t reported to insurance companies or official channels.
- Varying Quality: The reliability of reports can vary between providers. Some may have access to more comprehensive data sources than others. This often explains why Carfax’s prices are higher.
- Supplementary Tool: Vehicle history reports should be considered only one tool in the car-buying process, not a definitive assessment of a vehicle’s condition.
- No Guarantee: Even the most thorough report can’t guarantee a vehicle’s current condition or future performance.
Other Popular Vehicle History Report Options
While Carfax is well-known, there are other reputable options for vehicle history reports:
- AutoCheck: Owned by Experian, AutoCheck is Carfax’s main competitor. It’s generally less expensive than Carfax and offers a unique scoring system to rate vehicles.
- Bumper: A newer service that offers a monthly subscription model for unlimited reports.
- National Motor Vehicle Title Information System (NMVTIS): A federal database that provides basic vehicle history information.
- VINCheck: A free service from the National Insurance Crime Bureau that can identify stolen vehicles or those with salvage titles.
My Conclusion
While vehicle history reports like Carfax can provide valuable information, you shouldn’t rely on them exclusively when buying a used car.
The way I used these reports when I was a dealer, and the way you should use them, is as a guide.
Think of a vehicle history report as a piece of evidence in an investigation: By itself, it doesn’t prove anything, but when combined with other factors, especially a physical inspection, you can determine if there is a pattern pointing to a good car or a bad car and make a more informed decision.
Remember, a clean vehicle history report is a good sign, but it’s not a guarantee of a problem-free car.
