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What's a Carfax Report?

A mechanical inspection is the first and most important step in ensuring that a used vehicle is in good condition and that it is not hiding any problems. However, it is also strongly recommended that you check the vehicle's history by consulting what is known as a CARFAX report.

Formerly known as Carproof, this document is an important source of information that provides details on the history of vehicles and their evaluation. By tapping into millions of data points from thousands of unique sources, CARFAX enables buyers and sellers of used vehicles to make more informed decisions.

The report includes four main components:

1. Accident History - Damage to a vehicle can affect its value and safety, especially if it has not been properly repaired. The CARFAX report can impartially inform you of any damage, from hail damage to a total loss. Whether you're a transparent seller or a motivated buyer, it's an essential tool for completing a transaction with confidence.

2. Liens - Did you know that 37% of the vehicles for which CARFAX Canada has generated a historical report had a lien on them? A lien is still a debt, and if a vehicle has a lien, the new owner may have to pay the debt of the previous owner. In Quebec, the Registre des droits personnels et réels mobiliers (RDPRM) also tracks whether a vehicle has been given as collateral or has a lien on it.

3. Outstanding Safety Recalls - On average in Canada, one in six vehicles has an outstanding safety recall, which means it may not be safe to drive. Whether you are buying or selling, the CARFAX report will indicate whether or not the vehicle still requires recall work to be done.

4. Maintenance History - Knowing what maintenance has been performed on a used car in the past and how often it was performed can prevent problems from occurring in the future. A vehicle history report can show you what maintenance has been done, by whom, and how often, so you know what condition it is in.

By the way, CARFAX Canada launched the Dealer Advantage program in March 2019. The dealers who are part of it all commit to transparency by providing a CARFAX report with each car sold.

Lastly, it is necessary to point out that not all used car dealers and merchants join CARFAX. And among those who do, some may decide to register only major work, leaving the rest behind. Also, the vehicle's mileage is often missing.

All in all, the CARFAX report can be a useful tool, but it should not be the only reference for a used car buyer.

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