BUYING USED VEHICLES:
A CONSUMER’S GUIDE TO VEHICLE HISTORY REPORTS

OVERVIEW

Vehicles are expensive and will most likely be the second largest purchase you make. With that in mind, it’s important to know what you are paying for. Unfortunately, kicking the tires and peeking under the hood won’t give you the real story on the condition of a vehicle. To help consumers make the right decision when it comes to buying a used vehicle, there are now a number of products available on the market called “vehicle history reports.” These reports can be ordered online for a reasonable fee and provide a number of important details about the vehicle you’re researching, including previous accident damage and odometer readings.

Given that more consumers are turning to these reports when researching a purchase, OMVIC, under the direction of its Consumer Protection Advisory Committee, compiled this list of frequently asked questions to help you understand the basics of vehicle history reports.

CONTENT

1. What are vehicle history reports?
2. Are all vehicle history reports the same?
3. Will a vehicle history report tell me everything I need to know about a vehicle?
4. When should I purchase a vehicle history report?
5. What information is needed to obtain the history of a specific vehicle?
6. What information should I look for on a vehicle history report?
7. Why is it important to review odometer readings on a vehicle history report?
8. What is branding and why do I need to know if a vehicle has been branded?
9. Why should I check if a vehicle has any liens against it?
10. Why do I need to check the registration of the vehicle?
11. Why should I be concerned if the vehicle was previously used as a rental or taxi?
12. How concerned should I be if the vehicle history report indicates accident damage?
13. Should I acquire a vehicle history report if I purchase through a registered dealer?
14. Are there advantages to buying through a dealer?
15. What are the risks of buying privately?
16. How do I file a complaint with OMVIC?

1. What are vehicle history reports?

Vehicle history reports provide the history, or background, of a vehicle. They may provide information such as odometer readings, branding information and previous accident information. These details are important to prospective buyers because the history of the vehicle may impact whether or not someone wants to purchase a particular vehicle, or the price they’re willing to pay. For instance, knowing a vehicle has major frame damage or was branded salvage may influence a purchase decision.

2. Are all vehicle history reports the same?

When researching your vehicle, keep in mind there are different companies offering vehicle history reports and there may be differences in each of the products. Like any purchase, you’ll want to know what you’re getting for your money, and how that compares to other products. At the time of publication, the average cost for a vehicle history report was $28.

* To find companies offering vehicle history reports, perform an Internet search using the term “vehicle history report.”

3. Will a vehicle history report tell me everything I need to know about a vehicle?

Nothing is foolproof, so it’s fair to say that a vehicle history report may not capture all details about the vehicle you are researching. You should always have a mechanic you trust inspect the vehicle before making a final decision to purchase – especially when buying privately.

4. When should I purchase a vehicle history report?

Surprisingly, many consumers purchase a vehicle history report after they have made their vehicle purchase. At this point, it may be too late to take action should you be concerned about the findings – especially if you purchase your vehicle privately. Vehicle history reports should always be purchased prior to making a final decision about a vehicle. In Ontario, it is the responsibility of the private seller to provide a Used Vehicle Information Package (UVIP). UVIPs are available through the Ministry of Transportation.

5. What information is needed to obtain the history of a specific vehicle?

In order to obtain a vehicle history report, you will need the Vehicle Identification Number (VIN) of the vehicle you’re researching. Each vehicle is assigned a unique VIN which is a 17-digit code that identifies characteristics of the vehicle, including manufacturer, year, model, body, engine specifications, and serial number. VINs can usually be found on the driver’s side of the interior dashboard, visible through the windshield.

6. What information should I look for on a vehicle history report?

In our opinion, there are a few key items you should look for on a vehicle history report. It’s important you review odometer readings, branding information, lien information, registration and previous owners and, finally, accident damage. You will need to review the information provided in the report to carefully determine what’s relevant to your purchase decision.

7. Why is it important to review odometer readings on a vehicle history report?

It’s possible that an odometer may have been tampered with in an effort to make it more attractive to a potential customer – as consumers we tend to look for lower readings. If your vehicle history report includes odometer readings, compare them to the current odometer reading in the vehicle. If there is a discrepancy or if the reading looks lower than it should given the age of the vehicle or its signs of wear and tear, you should be concerned. If available, you should also look at any service records for the vehicle and check the odometer readings on them as well. Odometer tampering is an offence and any signs of it should be reported to the police.

If the odometer reading is deemed inaccurate, this can trigger a consumer's right to cancel a contract with a dealer within 90 days of purchase. A consumer can cancel a contract if a dealer has not disclosed certain information. For more information please visit the Helpful Information for Vehicle Shoppers page.

Note: There is one exception to the above. If the distance is off by the lesser of 5% or 1,000 kilometres, the odometer reading is deemed to be accurate.

8. What is branding and why do I need to know if a vehicle has been branded?

Vehicle brands indicate whether a vehicle has been severely damaged in the past. Insurance companies, auto recyclers, salvagers, auctioneers and dealers must ensure brands are assigned to vehicles damaged to the point of total loss. In Ontario, a brand of irreparable means the vehicle has been written-off, can only be used for parts or scrap and cannot be driven again. A salvage brand means a vehicle has been written off as a total loss, but can be repaired or used for parts. A rebuilt brand indicates a vehicle was written-off, branded as salvage and then repaired (and met a structural inspection by an authorized technician). A vehicle brand of none indicates a vehicle has not been given one of the other brands. Keep in mind, though, that damage could have occurred outside Ontario or the degree of damage did not meet branding criteria. It could also mean a vehicle was damaged or rebuilt before March 2003 (when mandatory branding was introduced). The absence of a brand does not necessarily mean the vehicle is accident free.

A dealer must disclose if a vehicle has been branded. If not, this can trigger a consumer's right to cancel a contract within 90 days of purchase.

9. Why should I check if a vehicle has any liens against it?

A lien is any registered claim on a vehicle as security for the payment of a debt. In other words, if a lien is held on a vehicle and the debt on that vehicle is not repaid, the creditor may have the right to take possession of the vehicle and sell it to recover the money owed. Before buying a vehicle, ensure it is free of liens. Registered dealers are required to clear liens prior to sale.

10. Why do I need to check the registration of the vehicle?

If you are considering purchasing a used vehicle, ensure the registered owner is the same person selling the vehicle. If not, you will need to find out why. You could be buying from a curbsider – a person posing as a private seller, but who is actually in the business of selling. Often, curbsiders sell vehicles with tampered odometers, liens or without making proper disclosure of prior accident damage. In the worst case scenario, you could be purchasing a stolen vehicle. Confirm the identity of the individual selling the vehicle by asking to see photo ID and proof of ownership of the vehicle. Also take into consideration the location where you meet the seller. It is best to deal at a person’s residence in order to verify the address.
 
If you notice an insurance company or salvage company listed as a previous owner, this could be an indication the vehicle was in an accident or written off.

11. Why should I be concerned if the vehicle was previously used as a rental or taxi?

Rentals and taxis typically experience more wear and tear than a privately owned vehicle. Keep this in mind when considering the purchase of a vehicle.

Dealers must disclose if a vehicle was previously a rental, taxi, limousine, police cruiser or emergency service vehicle. If not, this can trigger a consumer's right to cancel a contract within 90 days of purchase.

Note: if the vehicle was purchased from an individual this information does not have to be disclosed as per section 42 (7) of the MVDA.

12. How concerned should I be if the vehicle history report indicates accident damage?

An accident may only leave minor dents and scrapes, or it could result in major structural damage. The extent of damage determines the vehicle’s resale value and could determine the road worthiness of a vehicle as well as its future performance. You can ask the seller for maintenance and repair records, but to ensure you know the true condition of a vehicle, have it inspected by an unbiased mechanic, especially if buying privately.

13. Should I acquire a vehicle history report if I purchase through a registered dealer?

In Ontario, all motor vehicle dealers and salespersons must be registered with OMVIC and operate within the boundaries of specific legislation, namely the Motor Vehicle Dealers Act and the Consumer Protection Act, to name two. Your dealer and salesperson must operate with honesty and integrity and are expected to know the history of the vehicles they’re selling.

Your dealer should also disclose any material facts to you about a vehicle in writing. A material fact is information that would affect a consumer's decision to purchase if they knew about it. This would include previous use, accident damage and any branding information. Although your dealer is obligated to provide this information, you are still welcome to obtain a vehicle history report on your own.

14. Are there advantages to buying through a dealer?

Buying through a registered dealer means you’re protected. Should you run into problems with the purchase of your vehicle you can contact OMVIC’s complaint handling team for options and advice. Buying through a registered dealer also means you are protected by the Motor Vehicle Dealers Compensation Fund which provides recourse for consumers. You lose out on this protection should you buy privately.

Buying a vehicle through a registered dealer also allows consumers to cancel contracts up to 90 days after purchase. A consumer can cancel a contract if a dealer has not disclosed certain information. For more information please visit the Helpful Information for Vehicle Shoppers page.

15. What are the risks of buying privately?

When buying privately you need to be wary of curbsiders. “Curbsider” is an industry term used to describe someone who poses as a private seller, but is actually in the business of selling vehicles. Curbsiders often sell vehicles that are stolen, damaged or odometer-tampered. Using a vehicle history report can help you avoid curbsiders.

16. How do I file a complaint with OMVIC?

If you happen to run into a dispute with your registered motor vehicle dealer, OMVIC may be able to help. Before filing a complaint with OMVIC though, give the dealer the opportunity to solve the problem. Failing that, our complaint handling team will work with you and the dealer in hopes of resolving the issue, and in some cases, avoid the hassle of going to court. Our complaint handler will probably need to see your bill of sale, repair estimates or bills and any letters sent to the dealer or others. Complaint handlers are available from 8:30am-5:00pm Monday to Friday at 1-800-943-6002 ext. 5105. Your complaint can also be submitted online here. You should be aware that OMVIC cannot compel a settlement – only the courts can do that – but we are often successful in helping the parties come to a successful resolution of their problem.