How Does CARFAX Work?

Video Transcript

"How does a CARFAX work? A CARFAX works by collecting data from a particular vehicle using the VIN number by dealerships, auto body repair shops and insurance companies. The insurance companies will either put a claim on a vehicle, the body shops have to report to CARFAX if it's over a certain dollar amount and dealerships all those records can be obtained by anybody using the VIN number. So by using the VIN number the CARFAX will give you a good history of whether the vehicle's ever been in a wreck, whether the vehicle has had it's proper maintenance done. So it's always good to get a CARFAX report. CARFAX report doesn't necessarily give you all of the information but it is a good idea when buying a new car."