How to read a CARFAX report
Go through it in the same order every time: summary, title, owners, accidents, mileage, service.
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The sections, in reading order
- Summary The box at the top lists accidents, title problems, owners, service records and the last reported mileage. Use it to decide whether to read on.
- Title history Look for salvage, rebuilt, flood, hail, lemon or junk. A brand stays with the car for life and lowers its value and insurability.
- Ownership history Many owners in a short time, or use as a rental, taxi or fleet car, means harder use.
- Accident and damage history Note the date, the part of the car and whether airbags deployed or the car was towed. Structural damage is the serious kind.
- Mileage Follow the readings in order. A reading lower than an earlier one, or years without any reading, needs an explanation.
- Service history Regular oil changes and scheduled maintenance are a good sign. Long gaps are a question for the seller.
7 red flags
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Any title brand.
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Structural or frame damage, or airbag deployment.
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A mileage reading lower than an earlier one.
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A registration in a flood-hit area followed by a quick sale.
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Several owners within a year or two.
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A sale at a salvage auction.
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A report date that is months old.
After reading
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Compare the VIN on the report with the windshield and the door jamb.
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Ask the seller about every accident and every gap.
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If the report mentions an auction, get the auction record: it has the photos.
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Have a mechanic inspect the car before you pay.
Frequently asked questions
What is the most important part of a CARFAX report?
The title section. A brand such as salvage or flood changes the car's value and safety more than anything else.
What does "damage reported" mean?
A source reported damage without calling it an accident: hail, vandalism or a parking-lot hit, for example. Ask the seller what was repaired.
Is one accident a deal-breaker?
Not by itself. A minor, properly repaired accident affects price more than safety. Structural damage is different.
What does a mileage inconsistency mean?
A reading that does not fit the others. It can be a typing error by a shop, or a rolled-back odometer. It needs checking either way.
How current is the report?
It is current on the day it was generated. Check the date at the top.
What does a branded title mean?
A state has permanently marked the title because of serious damage or a defect. The title-brand guide explains each brand.
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