The Benefits of Using Carfax when buying your next car

If you are in the market to buy a used car, using Carfax as a research tool is worth the investment.

Carfax’ history dates back to 1986 when it worked closely with the Missouri Automobile Dealers Association, providing vehicle history reports to the dealer market. By the end of 1993, Carfax obtained title information from nearly all fifty states. When the largest automobile database, the company offered all consumers the same instant access to vehicle history reports that auto dealers, banks and other businesses were already subscribed to.

So what can Carfax provide you?

1. When the car was built
2. When and where the car was first registered
3. When the first annual inspection was done
4. When the second annual inspection was done
5. When the car was registered in a new state
6. When the car was offered for sale
7. Accidents - Not all accidents are reported and not all reported accidents are included, but a substantial number are listed
8. Advisories - Carfax aggregates enough data on most vehicles to infer certain events. When the inference is sufficiently strong Carfax will provide an advisory explaining the inference.
9. Airbag Deployment
10. Auto Auction - Many vehicles are sold at auction and Carfax reports on these sales
11. Certified Pre-Owned Status - Many manufacturers report the cars they certify to Carfax
12. Dates of activity - Most events shown on the report include a date of the event
13. Emission Test Results
14. Frame Damage - In addition to reporting accidents, frequently frame damage is reported
15. Lease / Lien events
16. Location - Most records include some indication of the city and state of origin for the event
17. Maintenance and Service Events - Like accidents, not all are reported, but a significant number are
18. Non-Branded Lemon - The manufacturer bought back the vehicle as a courtesy instead of due to legal requirement
19. Odometer Readings - These may include readings or title designations that the readings are not reliable
20. Odometer Rollbacks - Some rollbacks are certified while other irregular readings are highlighted with suggestion for careful review
21. Open Recalls - Many manufacturers report their open recalls to Carfax
22. Ownership Transfers
23. Repairs - Like accidents, not all are reported, but a significant number are, particularly when paid by an extended warranty company
24. Stolen Vehicles
25. Title Brands - Official state designations found on the title such as Salvage, Flood, Lemon, and Junk
26. Title Numbers
27. Titling Activity - transfers, renewals, etc.
28. Vehicle Use - taxi, fleet, commercial, personal, rental car and other uses are reported

Some information is not available on a report. Personal information such as names, telephone numbers and addresses of owners is neither collected nor reported.

The Downside to Carfax, although small is:
1. Accuracy -While most of the time the Carfax reports are accurate, there can be some instances where Carfax is not accurate. If you look at some of the consumer websites online (Consumer Reports, Consumer Affairs), there are reports that some of the information Carfax provided was incorrect and ended up costing the buyer thousands of dollars.

2. Seller's problems- Picture you're selling your car and you find out that Carfax is listing incorrect information - what do you do? Well according to some of the consumer websites, not much. One site listed one story indicating the seller sent all his car records to Carfax in order for them to update their information. However, Carfax refused. Therefore, it's better to check your car's information sooner rather than later to be sure it will not hurt you in the future when you sell your own car.

While you never can be 100% sure about the accuracy of the Carfax information, it well may be worth $30 to find out what is listed. More information is always better when you are buying a car.

Greg Chapman of Greg Chapman Motors is a knowledgable and leading provider of used cars, trucks, and SUV’s. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area. For more information please visit http://www.gregchapmanmotors.com.

Tips for Used Car Shoppers

Shopping for a used car may seem like an insurmountable task, but it does not have to be. The following tips will help you purchase the right car, arrange a payment plan you can afford and establish a business relationship with a trustworthy and respectable used car dealer.

▪Research dealerships before you shop. This may involve an internet search for used car dealers in your city as well as phone conversations with reputable candidates. Finding a used car dealership with true in-house financing who reports to the credit bureau will benefit you beyond the joy of driving your new used vehicle. In house financing means that rather than outsourcing to a bank, the dealer is your lender. This type of loan can prevent the damage that could be caused by having a major bank make multiple inquiries on your credit. Make sure your lender reports to a credit bureau, which will allow you to improve your credit score as you make timely payments on your loan.

▪Know how much to spend. Realistically analyze your budget and determine how much you can afford to spend for a monthly payment. Do not push your payment to the maximum, as you may have increases in insurance payments to consider as well. Use the internet to obtain the generalized resale value of any used car you are considering, which will give you a good idea of a fair price before you start any pricing discussion at the dealership.

▪Do your homework. You likely have a few ideas in mind for the type of car you are seeking. Research how certain makes and models stack up against competitors and read accounts of owners’ experiences with certain vehicles on the internet and in consumer journals. Develop an educated opinion about the benefits and shortfalls of different vehicles, and evaluate them against your personal vehicle requirements.

▪Perform a background check. Thanks to CARFAX, consumers can now find out the history of a particular vehicle and avoid purchasing one with hidden problems. Reputable dealerships will provide a CARFAX report to potential buyers on all of their vehicles at no cost. But you can obtain a report on any vehicle yourself for a fee if necessary. The CARFAX report will advise you whether a car has been salvaged, flooded, seriously wrecked, used as a rental, or stolen among other things.

▪Get a second opinion. Even highly praised vehicles with a reported perfect history can have problems under the hood, and you never know why previous owners replaced them. Before finalizing your purchase, have the car lifted and inspected by a trusted mechanic who can advise you about problems the car may have. If a car requires major repair and you feel the dealer has concealed important information from you, take the hint and take your business elsewhere.

When shopping for a used car, seeking instant gratification may translate to settling for a vehicle that will not provide you with enduring satisfaction. Remember that a car is a long term investment and you must consider your long term intentions when making the purchase. Take your time, and use common sense about the background of the vehicle you want and the dealership you are working with. Whether you find the perfect vehicle on your first try or spend months searching, the ultimate goal is to end up with a reliable vehicle you love and a financial situation you can manage for the long haul.

About the Author: Greg Chapman, of Greg Chapman Motors, is a leading used car dealer Austin can rely on. For more information, please visit Greg Chapman Motors.