16 Red Flags to Watch For on a Vehicle History Report
Buyers: Beware! Used cars can be a great buy—or a disaster in the making. Here's what to pay special attention to in a vehicle history report.
Why do you need a vehicle history report?
Almost like a lifetime report card or a scrapbook of events both big and small, a vehicle history report details a used car's past. Why is it so important? If consumers know about a car's accidents, repairs, title history, and more, they can make an informed decision and decide whether or not to move forward with this particular car. Of course, it's important to be smart when buying a car, since it's such a big purchase.
The key to a vehicle history report is a car's vehicle identification number (VIN). "The 17-digit VIN is like the car's Social Security number," according to Edmunds, an online car resource. "It's used to note nearly every major event in a vehicle's lifetime." The two major companies that provide vehicle history reports are Carfax and Autocheck, and the cost for each ranges from $25 to $100, although Edmunds says that most major used-car dealers and some sites will provide a free report.
No matter how you come by your vehicle history report, you need to pay attention to it. Don't be swayed by a seller's enthusiasm or a low price tag: Instead, look for the following red flags to make sure the car is as great as it seems to be.
Too many owners
Put simply, a great car wouldn't be passed around like a bowl of spinach dip at a Super Bowl party. So if a vehicle history report shows a plethora of owners, it could be a signal that something's not right with the vehicle. As AutoBlog explains, "The more garages a car's been in, the less likely it's been lovingly cared for all its life." Plus, not every car makes a great used car. Here are 10 used cars you should buy—and 5 to avoid.
A specific type of accident history
One of the great things about vehicle history reports is the ability to review a car's accident history. Of course, not all accidents are the same. Some require easy repairs, while others call for major structural reconstruction that can impact the vehicle's performance and its resale value in the future. Here's how you can tell what's up: Look for past structural damage and prior airbag deployments. If you see this kind of accident history, U.S. News & World Report urges you to proceed with caution. Since not all repair shops are reputable, have your own trusted mechanic take a look at the quality of the repair work before writing that check.
It was once stolen
This can be a headache for a couple of reasons. First, thieves will have likely stripped the vehicle of its best bits, and then those components could have been replaced with substandard parts. That's not what you think you're getting, of course. Plus, during the robbery, the car may have had its electronic components or engines tampered with.
And, of course, if the car was stolen and not returned to its rightful owners, you could have another huge problem on your hands. According to autoDNA, "buying a stolen car can cost you a lot; not only would it be taken away from you, but you would not get the money back, either." These 10 cars have the highest likelihood of being stolen.
A well-traveled past
The issue here isn't road trips and extra miles on the car. Instead, you need to be wise to "title washing," something that could affect nearly 800,000 motor vehicles in America. So, how can you spot it, and what is it, exactly? If you see that a car's title history spans several states in just a few years, it could mean that "sellers may be altering vehicle titles to hide their salvage status and sell the cars as regular used vehicles," according to Cars.com. "To do this, sellers often send those cars through states with looser title laws." Title washing is a dubious practice that is more prevalent in certain states. Check this U.S. map to see if your state's title laws make it more likely you could be purchasing a "washed" used car. Here are 34 more secret car-buying tips you should know.
A salvage title
There's something else to keep an eye out for when reviewing title history: a salvage title. This means that an insurance company determined the vehicle was not economically viable to repair and declared it a total loss. According to U.S. News & World Report, what happened next is that "someone came along and performed repairs sufficient to return the vehicle to the road." But this doesn't mean the car is safe, sturdy, or sensible to purchase. When that care is re-titled, it is branded with "salvage" on the title document. Even if the car doesn't have a salvage title, you might want to avoid certain brands. For example, these cars are plummeting in value.
An odd odometer reading
One of the biggest and brightest red flags on a vehicle history report is found on the odometer. The numbers you see should not be lower than what you see on the report. Because the odometer reading is recorded at every important point in a car's life—major service, registration, inspection, etc.—the figure on the dashboard should never be lower than what it is at any of these points. "If the mileage on the report doesn't match the number on the vehicle's odometer, it's a sure sign that the odometer was rolled back, which is an illegal practice," says Matt Smith, Senior Editor at CarGurus.com.
Before purchasing a used car, dig through the vehicle history report to see if there have been any recalls on the vehicle's make, model, or year, and then check to see if those recalls have been serviced properly. If a car has been on a dealer lot for a considerable amount of time, there could be recalls needing attention, just like when you buy a previous generation smartphone or video-game console and it immediately needs to run updates. A used car's vehicle history report will also inform you of recall checks that have been performed. You're more likely to avoid this problem with these car brands that have the fewest recalls.
HotCars.com doesn't mince words when it comes to a lien, the safeguard given to the person or institution lending the money to purchase the car. A lien gives the creditor the authority to repossess the vehicle if the lender defaults on his loan. HotCars urges used-car shoppers to walk away from the sale immediately if a report says that the car's title still has a lien because this "indicates that [a private seller] does not have the right to sell the car and is likely a scam."
A spotty service record
While not every single car-service appointment will appear on a vehicle's history report (that would be an awful lot of oil changes to scroll through!), major services and regularly scheduled maintenance appointments should be listed. DePaula Chevrolet notes, "Things like brake, timing belt, and wheel bearing replacements, as well as other major repairs, should be noted [in a vehicle history report] in order to give you an idea of when the repair should have happened versus when it actually happened." That information will give you a better picture of how the car has been cared for. If the service record is spotty, with huge gaps in the report, this is a red flag you should heed. When you do finally choose the right used car for you, make sure you know these 74 maintenance tips that will extend its life.