Understanding Vehicle History Reports: Essential for Buying a Used Car

When you're in the market for a used car, there’s one essential document that can make or break your decision – the vehicle history report. This document provides detailed information about a car’s history, helping you avoid potential issues and make an informed decision before purchasing. 

Along with reviewing the history report, knowing How to Properly Test Drive a Car can reveal hidden mechanical or performance issues that may not be listed in the report. In this guide, we’ll explain the key details and how a comprehensive vehicle history report can give you transparency and peace of mind.

What is a Vehicle History Report?

A vehicle history report is a document that provides a comprehensive overview of a motor vehicle's past, including information about accidents, repairs, odometer readings, and ownership history. Compiled using data from insurance companies, government records, repair shops, and other industry sources, a vehicle history report typically includes information that helps potential buyers assess the risks associated with purchasing a used car.

This report is essential for anyone looking to purchase a used car, as it offers insight into the vehicle's history, allowing buyers to make informed decisions when purchasing. It serves as a thorough vehicle history check, ensuring you have all the important information to avoid costly repairs or buying a car with hidden problems.

Why is a Vehicle History Report Important and How To Do It?

Uncover Hidden Issues

When purchasing a used vehicle, it’s easy to be swayed by its shiny exterior, but the real story lies in its past. A vehicle history report provides transparency by revealing hidden issues like accident history, flood damage, or previous repairs. Without a history check when buying a used car, potential buyers might overlook these critical details.

Example: A car may look well-maintained on the outside, but a car history check can reveal if the car has been involved in an accident and declared a total loss. Knowing this upfront can help you avoid costly repairs down the line. To be extra sure, you might also want to check out our guide on How to Properly Test Drive a Car which will help you to spot any performance issues that aren't captured in the report.

Check Odometer Reading for Tampering

Odometer fraud happens when a seller rolls back the odometer reading to make the vehicle seem like it has fewer kilometres than it actually does. This can be difficult to detect without reviewing the vehicle history report.

A comprehensive report typically includes information about odometer readings from service records, inspections, and insurance claims, helping you spot any discrepancies. Odometer rollbacks are a major red flag for potential buyers.

Why it matters: Higher mileage usually means more wear and tear on key components, which increases the risk of future repair costs. Getting a vehicle history report ensures that the odometer reading is accurate and that you’re not overpaying for a car that’s seen more kilometres than advertised. 

Verify Ownership History and Vehicle Title

The ownership history of a car matters just as much as its mechanical condition. A vehicle history report shows the number of previous owners and whether the car has changed hands multiple times in a short period. Frequent changes in ownership could be a red flag that the car has unresolved issues.

Another key factor is the vehicle title. If a car is listed as "salvage" or "rebuilt" on its title, it means the vehicle has been involved in a major incident, like a collision or flood damage. A thorough vehicle history check allows you to see if the car has a clean title, ensuring that the vehicle you’re buying is legally sound.

Service and Repair History

One of the most valuable insights a vehicle history report provides is the car’s service history. A well-maintained car is more likely to be reliable, and a car history check can reveal how well the car was cared for by previous owners.

This section of a vehicle history report typically includes information about regular maintenance, such as oil changes, brake replacements, and general service checks. If the report shows gaps in the service history, it may indicate that important maintenance was skipped. If you’re unsure of how to spot service issues during an inspection, our guide on How to Properly Test Drive a Car can help you identify red flags related to brakes, handling, and engine performance.

Why it matters: Consistent service history helps you avoid potential breakdowns and costly repairs. A car without a clear maintenance record may cost you more in the long run.

Accident History and Major Repairs

Accident history is one of the most important sections of a vehicle history report. It reveals whether the vehicle has been involved in a collision and highlights the extent of the damage. Cars that have sustained major structural damage may look fine after repairs, but the integrity of the frame could be compromised.

A vehicle history report includes accident details provided by insurance companies and repair shops. This ensures that potential buyers are aware of any hidden problems, giving them the power to negotiate a better price or walk away altogether.

Pro Tip: Look for terms like "frame damage" or "structural damage" in the report. These are red flags that the car may not be as safe as it appears.

Detect Liens and Financial Encumbrances

Imagine buying a car, only to discover later that the previous owner still owes money on it. This nightmare scenario can be avoided with a vehicle history check. The report shows whether there are any financial encumbrances on the vehicle, such as loans or unpaid debts.

A vehicle history report helps you ensure that the vehicle you’re buying is free of any liens or claims, giving you peace of mind and a clear title.

How to Get a Vehicle History Report

Ask the Seller or Dealer

If you’re buying from a dealership, they should provide a vehicle history report for free. Private sellers may not offer this, but you can request it as part of the negotiation process.

Use Online Services

You can obtain a vehicle history report from several providers. In Australia, popular services include:

• CarHistory: Offers comprehensive reports on Australian used vehicles.
• PPSR (Personal Property Securities Register): Checks if the car has an encumbrance, has been stolen, or was written off.

All you need is the Vehicle Identification Number (VIN) or the Rego number to access these reports. The report may come with a small fee, but it’s a worthwhile investment for the transparency and peace of mind it provides.

What to Look for in a Vehicle History Report

When reviewing the vehicle history report, be on the lookout for these potential red flags:

• Accident History: Look for terms like “major collision” or “structural damage.”
• Odometer Reading Discrepancies: If the odometer reading suddenly drops, it could be evidence of odometer rollback.
• Title Issues: Look for mentions of "salvage title" or "rebuilt title," as these indicate the car was declared a total loss.
• Multiple Ownership Transfers: Too many changes in ownership in a short period could mean unresolved issues.
• Service and Repair History: Gaps in service history may mean essential maintenance was missed.

By reviewing the vehicle history report, potential buyers can ensure that the vehicle is in good condition and avoid buying a car with hidden problems.

Conclusion: Why a Vehicle History Report Matters

A vehicle history report is a crucial document that provides detailed information about a used vehicle’s past. From accident history and repair records to odometer readings and ownership history, a comprehensive report typically includes all the data you need to make an informed decision before purchasing a used vehicle.

Don’t risk buying a car without reviewing the vehicle history report. Whether you’re looking to purchase a used car or need a thorough vehicle history check, make sure you get access to the report before signing anything.

Don’t leave it to chance. Get a vehicle history report before you buy.

Lastly, if you don’t want to deal with inspection checks and are in the market for a new car, contact us through our New Car Buying Page, where you can get expert opinion and guidance.