Did you know that 1 out of every 10 used vehicles has hidden problems from its past? A Carfax Vehicle History Report identifies these problems and also provides valuable information that can be used in making smarter decisions. Simply enter the 17-character Vehicle Identification Number (VIN) found on title documents as well as the dash of the car, and Carfax will generate in seconds a detailed history report on virtually any registered used car or truck.

What is Carfax?

Think of Carfax as a computerized "background check" on a used car''s history. When you supply the VIN of a car, Carfax will search its database with over 1.6 billion unique vehicle records to see if your car has a potential hidden problem or a questionable past such as: Has that car ever been totaled? Was it a lemon? Was it titled as a flood vehicle? Is the odometer accurate or has it been rolled back?

Why pay the $14.99 cost for a report? Here''s a true story to consider. A woman was looking to buy a 1988 Acura Legend with 71,000 miles on it from an individual. But the Carfax report showed that very same car had 126,000 miles on it two years before! Obviously, she didn''t buy the car.

Here''s what you will need to get a detailed Carfax report:

• The vehicle''s 17-digit Vehicle Identification Number or VIN (check the driver''s side dashboard)
• Your credit card (American Express, MasterCard, Visa)
  Where Does Carfax Get its Information?

Carfax obtains information on 1981 and newer cars and light trucks from a variety of sources including:

• US State Motor Vehicle Departments: 48 states (excluding RI. and VT.) provide Carfax with title records on a regular basis. This represents 99% of available titles. These title records contain important information including the brands (salvage, junk, flood, rebuilt, lemon and others), the date the title was issued, the city and state of issue, and Truth-in-Mileage certified odometer readings.
• Canadian Province Vehicle Registration Records: Canadian provinces also provide Carfax with records on a regular basis. These records provide important information such as registration date, owner's location, and other information about the car''s history.
• Used Car Wholesalers: More than 80% of used car wholesalers (referred to as auctions in the industry) provide Carfax with odometer readings when they process these vehicles, identifying Carfax to potential odometer rollbacks.
• Salvage Auctions: Leading salvage auction companies provide Carfax with data about severely damaged cars that have been sold at a salvage auction. Some of these salvaged cars may not show up on a Motor Vehicle Department title as having been completely damaged at one point.
• Emissions Inspections: Many states or counties require annual or bi-annual emissions inspections. Odometer readings are collected at the time of the inspection.

How Complete is the Carfax Database?

Carfax has the most comprehensive and accurate vehicle database in North America. The database includes information on virtually all used cars (dating back to 1981). About 1 in 10 of these vehicles has a potentially significant problem, which can abate the value of the vehicle.

Even though the Carfax''s database is the most comprehensive to date, it may not have the complete history of every vehicle. The amount of data available will depend on when the state Motor Vehicle Department or other agency began providing records to Carfax. Furthermore, since the vehicle information originates with the state Motor Vehicle Department or other agency, Carfax has no control over the accuracy or completeness of the data.

Carfax therefore recommends that you use a Carfax report as one important source of information when buying a used car. However, you should exhaust all other available resources as well as having a mechanic examine the vehicle before you decide to purchase.

Note: Carfax does not collect the names of vehicle owners, repair service records, stolen vehicle data or the dollar value of vehicles.

Article originally available on CarPrices.com. Data record figures and price updated from original issue date of article.

APPENDIX

CARFAX TERMS AND DEFINITIONS

Auto Auction - Auto auctions provide Carfax with odometer readings of vehicles brought to the auction for sale (and whether or not it sold). It is common practice for vehicles to be wholesaled at auctions.

Damage Disclosure Title - The title issued when the seller indicates that the vehicle has sustained damage as a result of one or more incidents. The amount of damage varies by state.

Date Reported - Refers to the date when the transaction occurred.

Emissions Inspections - Many states or counties require annual or biennial emissions inspections. Odometer readings are collected at the time of the inspection.

Exempt Vehicle - The vehicle is over 10 years old, was manufactured before 1986, and is exempt from odometer reporting requirements.

Flood Damage Title - States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

General Comments - Carfax reports display important information in the General Comment section, including potential problems for each transaction. Comments will vary, depending on the source of the information.

Information Source - Refers to the provider or origin of the transaction. There are several sources you may see on a report including Motor Vehicle Department, Auto Auctions, Salvage Auctions, and Emissions Inspection Stations.

Lemon Law - Most states have a lemon law to protect consumers from having to keep a car that has recurring problems. If someone buys a new car with major problems, and the manufacturer fails to repair the defect in a certain amount of time, the manufacturer may be required to refund the consumer''s money by buying the vehicle back.

Lien - A lien is an ownership right to a piece of property. When a financial institution loans money to someone purchasing a vehicle, the financial institution has a lien on the vehicle. Other types of liens include mechanics'' liens and child support liens.

Manufacturer Buyback (LEMON) Title - The title issued when a manufacturer has repurchased a vehicle with major problems. State laws vary as to the requirements for a "buyback."

Motor Vehicle Dept. - Motor Vehicle Departments issue both titles and registrations to a vehicle''s owner. Each title or registration record, which appears on a Carfax report, does not necessarily indicate a change in ownership. New titles and registrations can be created for name, address and lienholder changes; ownership changes; vehicle status changes; registration activity; title corrections; and lost titles.

Odometer Rollback - If a more recent odometer reading is less than an older reading, then the odometer may have been "rolled back".

Rebuilt/Reconstructed Title - The vehicle sustained damage and was rebuilt or reconstructed, then placed back on the road.

Repossession - A vehicle owner fails to make loan payments and the financial institution holding the title takes possession of the vehicle.

Salvage Auction Record - Vehicles that are sold at salvage auctions. These vehicles have been declared a total loss by an insurance company, are recovered stolen vehicles, or have been repossessed.

Salvage/Junk Title - States issue salvage titles when an insurance company takes possession of a vehicle as a result of a claim. This generally occurs after a vehicle has been declared a total loss. States issue junk titles to indicate that a vehicle is not road worthy and cannot be titled again in that state.

Title Issued - A state issues a title to provide a vehicle owner with proof of ownership. Each title has a unique number. Each title or registration record, which appears on a Carfax report, does not necessarily indicate a change in ownership.

Total Loss - An insurance company declares a vehicle a total loss when paying a claim for the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.

Unreliable Odometer (Not Actual Mileage) - When the seller certifies, under the Truth in Mileage Act, that the odometer reading is NOT ACTUAL MILEAGE. This may occur because the disclosed odometer reading was not accurate and verifiable.

Vehicle ID No. - This 17-character number is unique to each vehicle. It identifies characteristics of the vehicle, including manufacturer, year, model, body, engine specifications, and serial number.