The Effect of a Carfax Report on the Price of a Vehicle

by Kent Ninomiya

A Carfax history report can have a major impact on the price of a used vehicle. A Carfax report details the history of a car. A good Carfax report can inflate the price of a used car, while a bad Carfax report will reduce it.


Carfax reports use a vehicle's Vehicle Identification Number to track its history. The VIN number is usually located on the dashboard. Since it never changes throughout the life of the vehicle, it can be used to follow its movements.


Carfax reports reveal all the previous owners of a vehicle. You can see when they purchased the car and when they sold it. The more previous owners a used car had, the lower the price of the vehicle.


Carfax reports reveal where a used car was bought and sold. This is important since many used cars were damaged by natural disasters like Hurricane Katrina, then cleaned up and sold in other parts of the country.


Carfax reports list the mileage of the vehicle every time it is bought and sold. If a long period of time passes with little or no mileage increase, it is a clear indication that the odometer was rolled back. This would greatly reduce the value of the vehicle.


All major accidents, airbag deployments and damage to the vehicle frame are reported on a Carfax report. Any incidents on the Carfax report will lower the price of the car.


Carfax history reports indicate whether there are issues with the car title. If there are liens on the vehicle, it cannot be legally sold.

About the Author

Kent Ninomiya is a veteran journalist with over 23 years experience as a television news anchor, reporter and managing editor. He traveled to more than 100 countries on all seven continents, including Antarctica. Ninomiya holds a Bachelor of Arts in social sciences with emphasis in history, political science and mass communications from the University of California at Berkeley.

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