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October 25, 20225 min read

What Does The Carfax Report Provide? Why Is It Important?

If you’ve decided to set down the road of purchasing a used car, there’s nothing wrong with that. Call us biased since we sell used vehicles, but purchasing used has its benefits; one being that you can often get more car for less money. With that being said, there are a few extra steps that need to be taken before jumping into a pre-owned vehicle and driving away. As a result of these extra steps or the fear of buying a lemon, many car buyers forgo used cars and go right to buying brand-new ones. To each, their own - isn’t that what they say?

This may come as a shock, but not everyone can be trusted equally, especially when buying a used car from a private seller. We admit that buying used can have its issues and concerns, but there are ways to alleviate suspicions. The number one way to feel confident in the used vehicle you are purchasing is by obtaining a Carfax Canada vehicle history report which will provide you with the car’s history. Whether you are buying your used car privately or through a car dealership, always ask for a Canadian vehicle history report. Most reputable dealerships will provide one with every vehicle they sell, but maybe that’s a wild assumption. Rest assured, if you buy your next vehicle from us, FFUN Cars, all of the cars for sale come with a free Carfax report, and have also gone through a meticulous 92-point vehicle inspection. If a vehicle you are considering doesn’t come with one, you can easily get one yourself; you just need the vehicle identification number. Pro tip: if a car dealer or private seller doesn’t have a Carfax report or is reluctant to provide the VIN, take it as a red flag and walk away because they are most likely hiding something.

About Carfax

Carfax began in 1984 and is a web-based vehicle history reports company. Since its inception, it has become the most well-known provider of vehicle information. This peace-of-mind producing company provides information for vehicles in Canada, the United States, and Europe; however, in Canada, up until March of 2018, the vehicle history report provider was CarProof. Providing vehicle information doesn’t just magically happen; it takes loads of data sources. Carfax works with 100,000 sources including police reports from police departments, insurance companies, body shops, service shops, rental car companies, and more, so you know the information they are providing is as extensive as possible.

What Is Actually On The Report?

The best thing about a Carfax report is that it provides all the information that is available about a vehicle in one place without you having to look in multiple places. Think of it as a one-stop shop for your vehicle’s history. But, what is actually on this report can be the major deciding factor on whether you buy a car or not. Well, it has everything that is known about the vehicle, which includes the following:

  • Accident history
  • If it was ever a stolen vehicle
  • Any additional damage such as flood damage
  • All locations where the vehicle was registered
  • Any locations where it has gone through an inspection
  • Service history
  • Estimate of what the odometer reading should be - not super accurate so be sure to check the odometer
  • Ownership history
  • Does a lien check
  • Vehicle titles, such as, is it branded title or salvage title
  • Where and when the vehicle was sold. Not that this is a red flag but be wary if it ever went to an auction

We get it, that’s a lot to go through on one report, after all, we just listed them in point form but you know the actual report will be way more extensive. Yes, look at everything, but some of the top sections to focus on are, if and how many accidents the vehicle has been in, and if as a result of that accident there was airbag deployment, the vehicle was a total loss, and if there was any structural damage.

In addition to paying close attention to the accident history, review the maintenance records to ensure it went through the necessary servicing and to check that any safety recalls were addressed.

When It Comes To Accidents

Yes, nobody likes to see an accident on a vehicle’s history report, but don’t completely dismiss the idea of buying a car because it has one attached to it. Look a little further to see the extent of the accident. In many cases, the damage done to the vehicle could’ve been purely cosmetic but because the previous owner wanted the vehicle in pristine condition, they chose to have it repaired. Any vehicle repairs can be used as a negotiation tool to lower the price.

Carfax Is Great But It’s Not Everything

Keep in mind, as great as a Carfax report is; it isn’t everything. For example; rental car companies don’t report damage to insurance companies which is one of the major sources Carfax uses. In some accident cases, it’s a matter of over or under. What does that mean? It means that if there is damage to a vehicle and it’s reported, it could be reported as (for example) damage is less than $1000 or damage is over $2000. It doesn’t say how much over $2000, so this is where it can get tricky. Typically in Canada, that over or under number is around $5000 in damages. We always recommend if you buy a used car from someone other than us, where all of our vehicles are certified pre-owned, that you take it in for a pre-purchase inspection.

Whatever you do, don’t pass on getting a vehicle history report. Not just for you as a buyer, but you as a seller, should you decide to sell it one day. The last thing you want is to purchase a vehicle without one because you “trust” that it’s in perfect working condition, then when you sell it, the purchaser gets a report and a bunch of issues come up. Now, you are faced with additional vehicle depreciation.

As much as reading all the information we just provided can be overwhelming, and the last little bit is slightly alarming; believe us when we say that Carfax is a very reliable tool for determining a vehicle’s history. Maybe we’ve at least scared you away from buying through a private seller and that’s where we come in. We’re a new dealership with a new way of selling vehicles, but we’re backed by decades of automotive experience. We are all about selling amazing used cars with an experience that’s all about your convenience. When it comes to loving your vehicle, we know you can’t decide based on a 10-minute test drive, that’s why we offer a 24-hour test drive so you can really get a feel for the vehicle. That’s not all either; there are loads of other benefits that make us a top pick for your next vehicle purchase. Visit us online to see what we’re all about or check out our inventory, or stop in and say hi. We’d love to meet you.


Kyle Senger

Written by Kyle Senger

Kyle is the VP of Marketing and has been a marketing executive for 18 years and has spent nearly a decade promoting anything with four wheels and a motor. Kyle stays on the cutting edge of automotive technology, researching the latest widgets and AI-generated tools to determine what drives car buyers and their purchasing trends.