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Posted on: 24 September 2015

When you are shopping for a used car, your heart might skip a beat when you find the ride of your dreams that actually fits your budget. However, before you start signing papers, you should consider the fact that there might be more to that ride than you think. However, since damage, insurance claims, and financial information are associated with your car's vehicle identification number, VIN reports can save you from a world of trouble. Here are three reasons you should always ask for a VIN history report:

1: Your Vehicle Might Have Undetectable Damage

Sure, that ride might look brand new and tote that mystifying "new car smell," but what is really going on under the hood? Without a VIN history report, you have no idea what has happened to the car in the past.

When vehicles sustain more damage than they are worth, the insurance company might declare the car a total loss and assign the car a salvaged title. Although the damaged car can be sold to a repair facility to be rebuilt, the salvaged title acts as a warning so that buyers know what they are getting into.

Unfortunately, some repair facilities are more honest than others, which is why VIN reports are so important. Vehicles that have salvaged titles can have undetectable damage that can be expensive to repair. For example, if your car was involved in a flood, it could have problems with rust or mold damage. If a dishonest car dealer wants to make a better profit, he or she might fix up the outside, leaving the inner workings of the car damaged. If you don't notice the salvaged title, you might end up paying a lot more than the car is worth.

2: You Might Be Responsible to Repay Liens

Discovering hidden damage isn't the only reason VIN reports are so useful. If the previous owner used their car as collateral for a loan, or simply didn't repay their lender in full, you might be on the hook to pay the past due balance.

This balance is called a lien, and it is essentially a financial claim on the car. Unfortunately, if you purchase a car with an active lien, and you become the new legal owner, you might have to pay the lien before you can sell the car. If the lien is past due, the lender might even be able to repossess the car, even though you aren't the one who stopped making payments. 

Fortunately, VIN history reports can also uncover any outstanding liens against your car so that you know what you might be responsible to pay.   

3: Your Car Might Be A Lemon

Even good cars can have problems, which is why state lemon laws exist. If a car was serviced multiple times within its first few years of operation, vandalized, or had the odometer tampered with, it can be marked as a lemon. Once a car has been labeled as a lemon, state laws require the manufacturer to repair the damage. Believe it or not, in some states, such as New Mexico, New York, and Massachusetts, lemon laws even apply to used cars.

Unfortunately, if you buy a lemon and you don't know about it, you might assume that the damage is natural, and pay for repairs on your own. However, since VIN history reports also state the car's lemon status, you might be able to take advantage of existing manufacturer coverage.

Before you purchase a vehicle, write down the VIN number so that you can research the title status. If you don't have a pen or a piece of paper handy, snap a picture of the VIN with your phone. By taking the time to get a VIN history report, you might be able to make a better investment and avoid a world of heartache. Click here for more information.