In recent years, vehicle history reports have become very popular. Google Trends shows that searches for terms like “VIN check,” “vehicle history,” and “CARFAX,” a vehicle history report provider, have all been on the rise over the last 10 years1.
When people discuss vehicle history reports, they often talk about them from the vehicle shopper’s perspective. They mention that these reports help customers compare used cars and evaluate pricing, which may drive their final purchasing decision. Customers have come to expect vehicle history reports while researching potential used vehicle purchases.
Vehicle history reports aren’t just important for prospective buyers, though; they’re also very useful for car dealerships. Beyond meeting your customers’ needs, vehicle history reports can make a difference in your business and used car sales. Let’s discuss what vehicle history reporting is and why it’s so important for dealers to pay attention to it.
What Is a Vehicle History Report?
A vehicle history report provides all the key details about a used car’s past. It may include details such as:
- Ownership history, including number of previous owners and registration locations
- Accident history, including the number of accidents and extent of the damage sustained
- Repair records, including the types of repairs and dates of work done
- Original manufacturer warranties, if applicable
- Recall notices, if applicable
- Odometer readings
Vehicle shoppers can go to the National Motor Vehicle Title Information System (NMVTIS) website to find vehicle history reports for the used cars they’re considering purchasing. By law, the NMVTIS must include information about the vehicle from all state motor vehicle agencies, including the most recent condition and odometer reading2. Insurance carriers and junk and salvage yards must also report on salvage, flood, and total loss vehicles2. Vehicle repair shops, auto auctions, and law enforcement agencies may provide additional information that gets included in vehicle history reports.
Customers can also purchase vehicle history reports on specific vehicles from providers like AutoCheck® and CARFAX®. These reports may include more information than the NMVTIS reports, such as the vehicle’s repair and accident histories3.
The ownership and accident histories are generally the two most important pieces of information for used car shoppers since they greatly affect the reliability and value of the vehicles4. On used vehicle sites, customers can even filter by related factors like “only one owner” and “no accidents.”
Importance of Vehicle History Reports for Dealerships
On the dealership side, vehicle history reports are valuable at almost every stage. Here are some of the times when they can come into play.
Inventory Acquisition
When you’re finding and purchasing inventory for your dealership, you become the vehicle shopper who benefits from understanding each vehicle’s history. Refer to vehicle history reports to help you decide whether a vehicle is worth adding to your inventory. A less-than-perfect history doesn’t necessarily mean you shouldn’t stock the vehicle—you just have to make sure your customers would still be willing to buy it.
Also, factor all the information from the reports into your appraisal process. Use the AI tools and sales history data available through ACV MAX Appraisal to help you land on pricing estimates for these used vehicles. The platform includes vehicle history reports and other enhanced car appraisal features, like VIN scanning, calculators, and AI capabilities that identify damage on vehicle photos.
Pricing
Once you have your inventory, you need to set prices. Your customers will use the vehicle history reports to estimate how much a used car is worth, and that research should factor into your pricing.
Consider the details in the vehicle history report and use ACV MAX Inventory to help set accurate prices. ACV MAX Inventory uses real-time market analytics and OEM build data to calculate the ideal price for your inventory.
Merchandising
Having clear, comprehensive vehicle history reports available for your inventory online goes a long way. Car shoppers will view your dealership as more trustworthy and spend more time reading your vehicle listings. They want details about used vehicles before purchase, and ideally even before heading to the dealership, so sharing the vehicle history report is a smart merchandising move.
Closing Sales
In the last stage of the sales process, the vehicle history report is still relevant. The customer may have questions about something in the report or try to negotiate the car’s price based on those details. Making sure your salespeople are knowledgeable and forthright about the vehicle history reports will facilitate the closing process.
Leverage Historical Vehicle Data in Your Dealership
A vehicle’s history matters at every stage, from when you purchase it as inventory to when you’re closing the sale to a customer. Gain access to the historical vehicle data you need to make more informed appraisal, inventory, and merchandising decisions with ACV MAX.
In ACV MAX tools, dealers can view and use extensive data sets, including vehicle history reports. Schedule a free demo to see how it works.
Sources
- Explore “Vehicle History.” Google Trends. Retrieved December 20, 2024, from https://trends.google.com/trends/explore?date=2014-11-21%202024-12-20&geo=US&q=vehicle%20history&hl=en
- NMVTIS for General Public & Consumers. American Association of Motor Vehicle Administrators. Retrieved December 20, 2024, from https://www.aamva.org/vehicles/nmvtis/nmvtis-for-general-public-consumers
- Used Cars. Federal Trade Commission. Retrieved December 20, 2024, from https://consumer.ftc.gov/features/used-cars
- Loveday, S. (28 January 2021). 3 Benefits of One Owner Cars. CARFAX. Retrieved December 20, 2024, from https://www.carfax.com/blog/one-owner-cars
