What is Carfax?

Carfax is a vehicle history report that aids consumers purchasing a used vehicle. The Carfax report contains registration information, accident information, and insurance records. The primary purpose of Carfax, is to help prevent consumers from purchasing a vehicle that had unknown issues.
.History
Carfax was founded in 1984 by Ewin Barnett III. The company began offering vehicle history reports to auto dealers and auto auctions in 1986; by 1993 the company had expanded into the consumer market, offering services to assist used-cars buyers. By 1996 these reports were available for purchase online at the companies website (www.carfax.com), making it much easier for consumers to access vehicle history reports.
Services
Carfax provides vehicle history reports for consumers and dealers. With a Carfax vehicle history report, a consumer or dealer can find out where a vehicle has been registered, if it has every been in an accident, or has had any title or mileage discrepancies.
Data Collection
Carfax collects data from motor vehicle departments, insurance companies and body shops around the country. The information collected is assigned to each vehicle VIN (Vehicle Identification Number) and compiled into a report.
Competitors
Autocheck (a division of the credit bureau Experian) is currently the only major competitor to Carfax.
Criticism
Carfax reports have often been criticized by consumers for missing obvious accident damage or problems. Due to the data collection model, the Carfax system may not be notified of vehicle body work or damage if the company that does the repairs isn't licensed. These "shade-tree" body shops do not report their information to Carfax.
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