Buying a used car can be one of the smartest financial decisions you make—if you do it right. Compared to new vehicles, used cars offer lower prices, less depreciation, and often cheaper insurance. But they also come with a certain level of risk. That’s why one of the most important steps in the used car buying process is getting a Vehicle History Report (VHR).
If you’ve never heard of a vehicle history report or aren’t sure whether it’s worth the extra time or money, this blog will explain why it’s not just helpful—it’s essential.
What Is a Vehicle History Report?
A vehicle history report is essentially a detailed background check for a car. It collects and summarizes important information about a car’s past based on its Vehicle Identification Number (VIN). Common providers of VHRs include Carfax, AutoCheck, and the National Motor Vehicle Title Information System (NMVTIS).
The report typically includes data such as:
- Previous ownership history
- Title status (clean, salvage, rebuilt, etc.)
- Accident and damage history
- Service and maintenance records
- Odometer readings
- Recalls
- Use history (rental, personal, fleet, etc.)
1. Spotting Hidden Damage
A shiny exterior can hide a lot. A vehicle might look perfect on the outside but could have a history of major accidents, flood damage, or frame repairs. These types of issues can lead to serious mechanical problems later on and significantly lower the car’s value.
A vehicle history report often reveals if the car was involved in an accident and whether it was declared a total loss by an insurance company. Some VHRs even include photographs from insurance auctions or detailed repair records.
2. Avoiding Title Issues
One of the biggest red flags when buying a used car is a branded title—for example, a salvage, rebuilt, or flood-damaged title. These indicate that the car has sustained serious damage in the past and was written off by an insurance company. While some of these vehicles are repaired and returned to the road, they often come with long-term reliability and safety concerns.
A VHR can also alert you to title washing, a scam where sellers move a car between states to “clean” the title and hide damage history. Without a VHR, you might unknowingly buy a car with a questionable or fraudulent title.
3. Confirming Mileage Accuracy
Odometer fraud is more common than you might think. Rolling back the mileage can make a car appear less used—and more valuable—than it really is. A VHR provides a record of mileage entries over time (from inspections, title changes, etc.), making it easier to detect inconsistencies.
If the mileage shown on the car doesn’t match the history, that’s a major red flag. Not only is it dishonest, but it also skews the car’s market value and expected lifespan.
4. Understanding Past Ownership and Usage
A vehicle history report tells you how many owners the car has had and what type of use it has seen. A car that’s been owned by a private individual and regularly maintained is usually a better buy than one used as a rental, ride-share, or fleet vehicle.
Multiple ownership changes in a short time frame can also be a red flag. It could suggest the car has chronic problems that previous owners were eager to get rid of.
5. Identifying Open Recalls
Manufacturers issue recalls to fix safety defects or compliance issues. If the vehicle you’re considering has open recalls, it means the necessary repairs haven’t been done. This could put your safety at risk.
Some sellers might not even be aware of the recalls—or may ignore them. A VHR lets you know upfront if there are any recalls you’ll need to address.
6. Supporting a Smarter Purchase Decision
A vehicle history report isn’t just about avoiding bad cars; it also helps confirm when a car is a good buy. A clean report with a single owner, regular maintenance records, and no accidents adds value and peace of mind.
With this kind of transparency, you can make a more informed decision—and potentially use the report in price negotiations. If you find minor issues, you might ask the seller to lower the price or make repairs before closing the deal.
Conclusion: A Small Investment for Big Peace of Mind
A vehicle history report usually costs between $25 and $40, and some dealerships offer them for free. Either way, it’s a small price to pay for the confidence and security it provides.
Skipping the report might save a few dollars in the short term, but it can cost you thousands in repairs, legal headaches, or resale troubles down the road. When it comes to buying a used car, knowledge truly is power—and a vehicle history report is your best source of it.