What is a Used Car Vehicle History Report?

A vehicle history report (VHR) is a document that outlines a car’s past, offering a comprehensive used car history check. It compiles data from insurance companies, repair shops and the Department of Motor Vehicles (DMV). It is a tool for used car buyers to assess the viability of purchasing a vehicle. Skipping this step could lead to unexpected issues, so it’s important to read through this before buying a used car.

What is a Vehicle History Report?

VHRs are detailed documents that provide a comprehensive history of a car’s past. You can acquire a car’s VHR from a number of sources. The National Motor Vehicle Title Information System (NMVTIS) has links to approved services in the US.

A VHR will comprise the following:

• Accident history: Informs you whether the used car has been in any accidents, the severity of any damage and whether any airbags were deployed.
• Title record: Illustrating if a car has a clean title.
• Ownership history: A record of all previous owners and length of ownership.
• Registration record: Providing information on when and where a car has been registered.
• Odometer readings: Here you can check if a car’s mileage has been tampered with and check if the mileage has been consistent over time.
• Insurance claims: Information on any insurance claims.
• Safety issues and recalls: To alert you about any important issues.
• Maintenance records: Information on when regular maintenance like brake checks and oil changes have taken place.

VHRs alert the buyer about any potential issues with the used car that might not be revealed by the dealer or from a cursory inspection.

What Information Does a Vehicle History Report Contain?

Accident History

If a used car has previously been in an accident it will likely reduce its resale value as it may indicate potential underlying issues. This is even if repairs have been made. It also reduces a car’s market appeal as buyers are cautious about hidden damage. Previous accidents can also impact insurance rates as insurers may view the vehicle as a higher-risk asset.

Prior accidents should also raise concerns about a used car’s safety. Even if it has been repaired, past accidents could still compromise the vehicle’s overall safety. Major accidents might affect a car’s structural integrity, even after repairs.

When looking into a car’s accident records, you should make note of the following:

• Severity: It’s important to look at the type and severity of the accident. A minor incident may not have a lasting impact on a car but a major accident could indicate long-term damage.
• Repairs: Check on the type of repairs made to the vehicle. Look out for original equipment manufacturer parts (OEM). If cheaper alternatives were used, or if the repairs were poorly done, this could reduce both value and safety.
• Airbags: It’s important to check that any deployed airbags were replaced and tested in case of future accidents.
• Insurance claims: These can show if the car was involved in expensive repairs and whether the insurance company deemed the vehicle a total loss.
• Frequency: If the car has been involved in many accidents, it’s a cause for concern which may signal a problem with the vehicle.
• Flood or fire: In cases of fire or flooding, hidden structural or electrical damage could pose a risk that’s not immediately apparent.

If you notice any serious concerns in a used car’s VHR, it may be worth reconsidering your options.

Title and Ownership History

When looking at a used car’s VHR, it’s important to look at its title status. There are three distinctions that you need to be aware of:

• Salvage: A car that insurance has written off as a loss.
• Rebuilt: A formerly salvaged car that has been repaired to roadworthy conditions. This car is then resold with a rebuilt title.
• Clean title: A new car that has never been written off as a total loss.

It is illegal to drive a car with a salvage title, so if this appears in the VHR then you know to move away from this used car. The National Insurance Crime Bureau (NICB) allows you to check whether a car has a salvage title or has been reported stolen.

Used cars with a rebuilt title will typically be 20-40% cheaper than the same model with a clean title. That said, there can be lingering safety concerns and it can be difficult to find insurance.

In addition, you should note how many previous owners a car has had. If a car has had many owners in a short period it could suggest ongoing problems or high maintenance costs. When a used car has had multiple owners it can also be harder to gauge how well the car was taken care of. This can sometimes result in title issues if ownership transfers are not handled correctly.

Used cars with one or two previous owners generally indicate that it has been reliable to keep over time. They tend to be valued higher than those with many previous owners.

That said, the number of previous owners doesn’t always indicate a car’s condition, which is why it is important to look at all factors on a VHR carefully before deciding on a used car.

Service and Maintenance Records

Consistent maintenance history is a good sign. This confirms that a car has been well maintained and reduces the likelihood of any unexpected costs and repairs. It also provides peace of mind over safety, reliability and longevity. Well-maintained service records can also increase a used car’s resale value.

If a used car has missing service records, this could indicate neglect or poor maintenance, which could lead to the car deteriorating over time. It may also signal hidden issues and unreported accidents and repairs, especially if the car has an unclear maintenance history. Moreover, if records are missing, it suggests that a previous owner was careless and irresponsible, which might mean the car wasn’t sufficiently cared for. A lack of documentation poses a higher risk of future issues.

Odometer Readings and Fraud Prevention

It is important to check a car’s odometer history on the VHR. The odometer measures a car’s mileage. Odometer fraud is an illegal practice where the odometer is rolled back to reduce the mileage reading, tricking buyers into thinking the car is in better condition and increasing its resale value.

In addition to misleading buyers over a used car’s mileage, odometer fraud is a problem because it could mean that critical parts are worn out or need repair, raising major security concerns. Most importantly, odometer fraud is illegal under US federal law and can lead to fines, penalties and even imprisonment.

If the mileage history on the VHR shows inconsistencies it could indicate tampering, but you can verify this by:

• Title or registration discrepancies: These documents will include the car’s mileage at the time of transfer. If it is inconsistent, it’s a cause for concern.
• Inspecting the odometer: By physically looking at the odometer you can check for signs that it has been tampered with by looking for scratches or checking if it is loose.
• Analyzing the car’s condition: If the mileage is low but the car shows signs of excessive use that doesn’t match the odometer reading, it could indicate that it has been rolled back.
• Checking service records: Some service records include the car’s odometer reading at each visit. If this is consistent with the current reading, it’s a red flag.

Recalls and Manufacturer Defects

When researching a used car’s history, it’s important to check for open recalls. These address safety-related defects that could lead to serious accidents. If these are not addressed, the consequences could be both expensive and fatal.

A car with an open recall will have a significantly reduced market value. Federal law requires the car manufacturer to cover recall repairs but it is the owner’s responsibility to ensure these take place.

Recall information is often contained in a VHR, but you can also check on the manufacturer’s website, at car dealerships and through the National Highway Traffic Safety Administration website. To do this you will need the car’s Vehicle Identification Number (VIN).

Where to Get a Vehicle History Report

There are several places where you can obtain a VHR. Here is an overview of three trusted providers:

• Carfax: Collects events from the lives of millions of used cars to create a vehicle history for every car in their database. The information helps to check sales data, avoid expensive follow-up costs and negotiate a fair purchase price.
• AutoCheck: Allows you to search by VIN or US license plate. The AutoCheck report also includes access to dynamic vehicle data updates for 21 days after purchasing the VHR.
• NMVTIS: While NMVTIS does not provide VHRs themselves, they do offer a comprehensive list of approved VHR providers across the US.

There is usually a charge for obtaining a VHR. The AutoCheck VHR is $29.99, while the Carfax report is $44.99. If you are purchasing multiple VHRs at one time there are better deals available.

Occasionally dealers, manufacturers and insurers may provide VHRs for free as part of promotions and deals. In case of such situations, you can always ask the seller if a free report is available before paying for a VHR.

How to Read and Interpret a Vehicle History Report

A VHR can be overwhelming, but here’s a rundown of how to check a used car’s history:

• VIN: The report will begin with this. Check that the VIN on the VHR matches the VIN on the car (located on the dashboard or on the driver’s door frame).
• Odometer reading: Check that this is consistent and make a note if there are signs of rollback.
• Accidents: This will indicate any previous damage. You should also check for repairs. Salvage titles will also appear in this section.
• Title history: Check for salvage or rebuilt titles. Also, note if there is a flood title. This means that the car was affected by flooding and may have hidden water damage. This could affect both mechanics and electric systems.
• Ownership and registration history: The list of previous owners and states where a car was registered. It also includes whether a car was registered as a fleet vehicle or company car, meaning it could have been used more.
• Service and maintenance records: Check for any missing records which may be a sign of neglect.
• Recall information: Make a note of any unresolved recalls as this can be a major safety concern.
• Lemon history: If a car is declared a lemon it means that it either has significant defects or that one defect could not be repaired after many attempts.
• Vehicle score: Some reports include a score based on the report. A high score indicates a cleaner history.

Any discrepancies in the VHR should be a cause for concern, the following could also be red flags:

• Severe accidents: These could indicate long-lasting damage, even after repairs.
• Salvage or rebuilt titles: This could impact the longevity of the car.
• Open recalls: These could be major safety concerns.

The information in a VHR will help you make an informed decision over a used car, and will also highlight when you need to ask the dealer more questions.

Are There Limitations to Vehicle History Reports?

VHRs can be patchy and not all incidents are always reported. Occasionally there may be incomplete or missing data, especially if there has been unreported damage or if repairs have been done privately. There can also be issues related to lags in reporting, data entry errors or state-specific variations.

While VHRs are incredibly useful, they are not always foolproof. A pre-purchase inspection (PPI) is still necessary. Independent mechanics may also be able to identify hidden problems that won’t appear on the VHR like frame damage and rust.

Checking a VHR is essential to understanding the history of a used car before purchasing it. These documents can help identify unexpected issues and assist in understanding whether a car is the right fit for you.

A VHR can be a tool alongside inspections for smart decision-making. They can also be used to negotiate a lower price if the car has issues from accidents or salvage title. Alternatively, you could request the seller take care of these repairs before agreeing to the sale.