How can you use vehicle history reports to prevent car sales fraud?

1 What are vehicle history reports?

Vehicle history reports are documents that provide information about a vehicle's past, such as accidents, repairs, recalls, mileage, title status, and more. They are usually based on the vehicle identification number (VIN), which is a unique code that identifies each vehicle. You can get vehicle history reports from various sources, such as Carfax, AutoCheck, or the National Motor Vehicle Title Information System (NMVTIS). Some of them are free, while others charge a fee.

2 Why are vehicle history reports important?

Vehicle history reports are important because they can help you verify the accuracy and completeness of the information that the seller provides. They can also reveal any hidden issues or red flags that could affect the value, safety, or performance of the vehicle. For example, you can check if the vehicle has been in a major accident, flood, fire, or theft, if it has been recalled or repaired for defects, if it has a clean or salvage title, if it has been used as a rental, taxi, or police car, or if it has any liens or odometer discrepancies.

3 How to get vehicle history reports?

The easiest way to get vehicle history reports is to ask the seller for them. If the seller is honest and transparent, they should have no problem providing them to you. However, you should not rely solely on the seller's reports, as they could be altered, outdated, or incomplete. You should also get your own reports from independent sources, using the VIN or the license plate number. You can find the VIN on the dashboard, the driver's door frame, or the engine compartment. You can also scan the barcode on the driver's side door or windshield with your smartphone.

4 How to read vehicle history reports?

Vehicle history reports can differ in format and detail, depending on the source and data available. Generally, they include sections such as vehicle overview, title history, accident history, service history, and other records. You should read each section carefully and compare it with the seller's information and the vehicle's condition. Pay attention to any inconsistencies, gaps, or warnings that could indicate fraud or problems. For instance, consider the number of owners and how long they owned the vehicle; the states or countries where the vehicle was registered and how often it changed locations; the mileage and how it matches the age and use of the vehicle; the type and severity of any accidents and how they were repaired; the status and history of any recalls and how they were resolved; the type and frequency of any maintenance and repairs and how they were documented; the title status and history and how it affects ownership and legality; as well as any liens or loans on the vehicle, which can affect title transfer.

5 How to use vehicle history reports to prevent fraud?

Vehicle history reports are useful tools to prevent fraud, but they are not infallible. You should use them as part of a comprehensive evaluation of the vehicle and the seller, such as asking questions and requesting documents to verify their identity, ownership, and authority to sell. Additionally, inspect the vehicle for signs of damage or tampering, test drive it, and consider hiring a mechanic or appraiser for an expert opinion. Furthermore, negotiate the price and terms of the sale based on the vehicle history report and your own assessment. Lastly, avoid paying in cash or using untraceable methods, such as wire transfers or gift cards; instead get a bill of sale and title transfer document signed by both parties and keep copies for your records.

6 Where to find more resources and help?

If you want to learn more about vehicle history reports and how to prevent car sales fraud, you can visit the Federal Trade Commission (FTC), the National Highway Traffic Safety Administration (NHTSA), the National Insurance Crime Bureau (NICB), or the National Consumer Law Center (NCLC). If you suspect or experience car sales fraud, you can report it to the FTC, NHTSA, NICB, or your state attorney general or consumer protection office. All of these resources can help you protect yourself against fraud and ensure a safe car purchase.

7 Here’s what else to consider

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