What is a vehicle history report? (And how to read one)

While some of the data will be obvious, there are some less apparent points to consider as well.

The value of a new vehicle depreciates considerably the moment it is driven off a dealership lot. Bankrate reports that a car loses between 9 and 11 percent of its value the moment it leaves the dealership, and over the first five years a vehicle loses roughly 40 percent of its value.

The fact that vehicles are expensive and lose value so quickly compels some consumers to consider preowned cars and trucks as more affordable and financially savvy options. However, preowned vehicles come with their own risks, such as the potential for hidden problems. A vehicle history report is something every prospective preowned vehicle buyer should ask to see before buying a car or truck. Sometimes these reports are a free service offered by a seller, particularly an established dealership. But buyers may have to pay to get a vehicle history report, which typically cost between $25 and $40.

Kelley Blue Book says a vehicle history report is a collection of records that provide information on a used vehicle that are pulled from thousands of sources. A report may be referred to as a Carfax , which is the name of a firm that offers these types of reports. However, Car & Driver indicates that Carfax only provides information that was reported, so their reports may not paint the full picture. A typical vehicle history report will indicate, among other things, how many people owned the car; whether or not the vehicle has been in a collision; the mileage on the vehicle; if the car is current on inspections; and if the vehicle is branded a lemon.

Consumers should know what to look for when reading a report. While some of the data will be obvious, there are some less apparent points to consider as well.

  • Title: Make sure the vehicle never had a salvage title or other title problems. A salvage title, for example, is a vehicle that has been declared a total loss from collision, flood, theft, fire, or vandalism. Additional issues may arise when the seller s name is not on the title. A rebuilt title means the vehicle was once salvaged but then refurbished.
  • Ownership: The vehicle history report will indicate how many owners have had the vehicle. A car that has changed hands many times may not be the best investment.
  • VIN: It s important to make sure the vehicle identification number (VIN) for the vehicle matches what is on the vehicle history report.
  • Location of sales: The locations where the vehicle was used and stored also is important. For example, some may be hesitant if a vehicle was kept by the coast due to moisture and salty conditions that could cause premature wear and tear on components.
  • Fleet vehicle: Carfax says that the history report will indicate if the vehicle spent time in a fleet. This includes rental vehicles, government vehicles, company vehicles, and dealer vehicles. A fleet vehicle may have had many different drivers over a short period of time.

Auto City suggests paying close attention to the most recent parts of a vehicle s history. If there have been multiple changes in ownership or increased service records for certain parts, that may indicate there is something seriously wrong with the car.

Vehicle history reports are another tool buyers can use when vetting preowned cars or trucks.

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