Knowing Who to Trust When Car Shopping

Commonly when hunting for a car, we're urged to put our faith in resources that don't offer quantifiable help and don't fix our car-buying woes. As consumers, it might be our parents urging us to "check the CarFax" before making our purchase or a corporation defending a markup on a used car because this report here says "It's clean". Carfax and similar vehicle history report services provide valuable information. However, who hasn't wondered if the Carfax they are looking at is even accurate? How possible is it for 3rd parties to manipulate the service reporting of the vehicle and feign a reliable Carfax? There are limitations and reasons why they might not always provide the full picture. While 3rd party reporting can further inform a good decision, incorrect or incomplete reporting can hinder one. Not all car-buying resources are built the same. Here are 9 reasons why CarFax is the least reliable car-buying resource. 

1. Incomplete Reporting

Carfax relies on reported incidents and service records. Not all accidents or repairs get reported, especially those not involving insurance claims or done through independent mechanics. 

Hiring a trusted local mechanic or inspection service to conduct a pre-purchase inspection can offer in-depth insights into a used car's condition, potential problems, and any hidden issues that might not appear on a vehicle history report.

2. Reporting Delay

It might take time for incidents, such as accidents or maintenance, to appear on Carfax reports. Recent incidents might not yet be reflected in the report.

If there is a discrepancy that you want to be fixed on your vehicle CarFax report, the reporting system is the same generic contact form shared with Billing/Refund requests and General Questions. This is disappointing as this error can have immense legal and financial ramifications for the owner.

Check out the long tedious form here.

3. Limited Sources of Information

Carfax gathers information from various sources like insurance companies, auto auctions, and service centers. Notoriously though, it might not have access to data from all service providers, especially smaller or independent shops. This opens up the possibility of fraudulently bypassing the CarFax report but still providing legitimacy in a car where it wouldn't otherwise exist.

Fortunately, AutoCheck offers vehicle history reports that can work in addition to the information found on CarFax and despie bad actors circumventing the most common reporting system. Some users find it more affordable and commonly uncover information surprisingly missed on CarFax.

Look up a car on AutoCheck here.

4. Title Washing

Some sellers might attempt to "wash" a vehicle's title by moving it to different states with lenient reporting requirements, effectively hiding certain incidents from Carfax. In fact, the issue of title washing is a trending issue affecting the country that has the risk of affecting any used car shopper.

DigitalDealer.com has a report on it from 2014! Check it out here. 

 

5. Data Error and Inaccuracy

Mistakes can happen in reporting, leading to inaccuracies in the Carfax report. Typos, incorrect mileage entries, or wrong service records might skew the vehicle's history.

Some insurance companies offer their subscribers access to vehicle history reports or additional information on past insurance claims, which can supplement a Carfax report.

6. Missing Information on Salvage Titles

Carfax might not always have complete information on vehicles with salvage titles, which could hide significant damage history. I've personally met a lot of people who give a salvage car the green light as soon as they see an agreeable CarFax. Misinformed car shopping can lead to a disaster.

It's common to miss using VINCheck.Info when at the point of buying a used car. This free service provides basic information on a vehicle's history, including salvage records, theft records, and any reported accidents. It's an excellent starting point for initial research.

Run a VIN for for a salvage car for free through VinCheck here.

7. Limited Recall Information

While Carfax reports include recall information, they might not always have real-time updates on the status of recalls or whether the issues have been adequately addressed. 

This is where the National Highway Traffic Safety Administration (NHTSA) can pick things up where CarFax drops the ball. The NHTSA's website provides safety-related recalls and complaints about specific car models. It's an invaluable resource to check for safety issues that might not be covered in a Carfax report. You should spend time on here more than most other resources.

Read up on safety issues and recalls by VIN here.

 

8. Little Reporting from Individuals and Exclusion of Private Sales 

Carfax primarily relies on reported incidents through service centers, insurance claims, or dealerships. Private sales or transactions among individuals might not get reported, leading to gaps in the vehicle's history.

Checking the DMV's website in the state where the vehicle was registered can provide accurate and up-to-date information about title transfers, ownership history, and potential liens.

9. Lack of Global Data

Carfax might not capture incidents or maintenance records from outside the United States, potentially missing important history for imported vehicles. International exports could be the most consequential if a purchase goes wrong and exactly where a car history resource could come in handy.

Online forums dedicated to foreign car models or brands often have threads discussing complaints, reliability, and ownership experiences. These can provide user insights into a specific vehicle's maintenance requirements and potential problems where CarFax doesn't offer anything.

While Carfax provides valuable insights, it's crucial to use it as one of several tools in the car-buying or selling process. Conducting a thorough inspection by a trusted mechanic, reviewing service records, and considering a comprehensive vehicle history report from multiple sources can provide a more holistic view of a vehicle's history.

 

I've spent years in the business personally helping San Diegans buy a car and avoid crucial financial mistakes. Subscribe to my blog for more car shopping insights like the ones here. I also have a $100 Gas Card Referral Offer you can read more about here.