Buying
How to read a CARFAX Canada report without missing the red flags
A CARFAX Canada report is usually the first document you'll see when you're looking at a used car, and the easiest one to misread. A line that reads "accident" can mean a scuffed bumper or a car that was nearly written off. A clean report can still have a gap. Here's how to read each part, what it can't show you and where to check the things it doesn't cover.
Short answer: Read the damage records for the dollar amounts and where the damage was, then check the registration history for provinces, US time and any brand like Salvage or Rebuilt. Make sure the odometer readings only ever go up. A standard report doesn't include a lien check, so run one separately, and always pair the report with an independent mechanical inspection.
What's in a CARFAX Canada report
The layout changes over time, but a CARFAX Canada report pulls together records from across Canada and the US. Expect these parts.
Accident and damage records
Each record shows a date, where in the car the damage was when that's known, and often a dollar figure. Two kinds of amounts matter, and CARFAX Canada's own support pages explain the difference:
- Estimate: what the damage was estimated to cost. An estimate doesn't prove the car was repaired. A later claim, repair or service record is what suggests it was.
- Claim: what the insurer actually paid to repair or replace the vehicle.
Some records have no dollar amount at all. That happens with police-reported incidents, insurance claims where the amount wasn't reported, "damage event" records and some US history. A $0 claim doesn't mean there was no damage. It means the repair cost is unknown, for example because the claim was denied, is still open, or the repair cost about the same as the deductible and the owner paid it.
A few hundred dollars on a bumper is cosmetic. Multiple large claims, front structural damage or a total loss record deserve a hard look. CARFAX notes that "total loss" is an insurance term, meaning repairs were close to or more than the car's value, and a car can show a total loss without being branded Salvage.
Registration history and branding
This part lists the provinces, and US states, where the car has been registered, plus its brand status. Check two things:
- Where it's lived. A car from a coastal, high-salt or flood-prone area tells you where to look for rust or water damage. A US history means it was imported, so check the lien status separately (see below).
- The brand. In Ontario, a normal car carries the brand "None". Any other brand is a major factor in price. More on that below.
Lien check
A lien means someone, usually a lender, has a registered claim on the car as security for a debt. According to CARFAX Canada, its standard Vehicle History Report doesn't include lien information. That comes with the "Vehicle History Report + Lien Check" version, which searches the provinces and territories where the car is or has been registered. CARFAX Canada also says it doesn't report on US-based liens.
Stolen vehicle check
The report flags whether the vehicle shows up as stolen. A stolen flag on a car someone is trying to sell you means stop and walk away.
Odometer records
Odometer readings come from registrations, service visits and other reported records. Read them in date order. They should only go up, at a believable pace. CARFAX Canada advises comparing the readings in the report with what's on the dashboard and making sure the pattern makes sense.
US history, recalls and service records
For a car with time in the US, CARFAX Canada says it reports the available US registration, service, damage and open recall history. Service records show oil changes, brakes and tire work from shops that report to CARFAX. Regular entries are a good sign. A gap only means nothing was reported.
What a CARFAX report can't tell you
CARFAX Canada is upfront that a report only contains information supplied by its participating data sources, and that other information about a vehicle may exist that was never reported. In practice, that means:
- Cash repairs are invisible. If someone fixed a fender at a friend's shop and never filed a claim, it won't be there.
- No record of an accident isn't proof the car was never in one. CARFAX itself recommends a mechanic's inspection and a test drive regardless.
- It says nothing about current condition. Brakes, tires, rust, leaks, the transmission, the AC: none of that is on a history report.
- Some records are vague. "Damage reported" with no amount or location tells you to look closer, not that everything's fine.
Red flags to know in Ontario
Irreparable, Salvage and Rebuilt brands
Ontario's Mandatory Vehicle Branding Program applies brands to vehicles written off after collision, impact, fire or flood, or stolen and stripped:
- Irreparable: written off as a total loss, usable for parts or scrap only. It can never be driven in Ontario again.
- Salvage: written off, but it can be repaired. It can't be plated until it passes a structural inspection at a DriveON centre.
- Rebuilt: a former salvage vehicle that was repaired and passed the structural inspection. It can be plated, but the brand stays on its record and lowers the value.
Brands from other provinces and US states generally carry over when a car is registered in Ontario. One exception: an out-of-province Rebuilt brand is downgraded to Salvage in Ontario and has to pass a structural inspection here before it can be plated. A rebuilt car isn't automatically a bad buy, but it should cost noticeably less, and you should see the repair documentation.
Odometer rollback
The warning signs are a reading that goes down from one record to the next, a long stretch with almost no kilometres added followed by normal use, or a dashboard number lower than the last reported reading. Also look for wear that doesn't fit the reading, like a shiny steering wheel and worn pedals on a low-kilometre car. Our guide on how many kilometres is too many helps you judge what's normal for the age.
Flood damage
Flood is one of the causes that can lead to a brand, but only when the damage meets the branding criteria. A flood car that was never claimed or never reached the threshold may not show a brand at all. In person, check for a musty smell, damp or new-looking carpet in an older car, silt or a water line under the seats or in the spare tire well, and corrosion in odd places like seat rails and under the dash.
How to check for liens in Ontario
Don't rely on one source. In Ontario you can:
- Read the UVIP. In a private sale, the seller is legally required to give you a Used Vehicle Information Package, and it lists liens registered against the vehicle.
- Search the Personal Property Security registry yourself. Ontario lets anyone search for liens on ServiceOntario's Access Now. The fee for an online response is $8. If something comes up, contact the lender to find out whether the loan is still active.
- Buy the lien-check version of the CARFAX report if you want one search across provinces. Remember it doesn't cover US liens.
This matters most in a private sale. Under Ontario's rules, a lien claimant can have a right to the car, or the amount owing, from the buyer once the transfer is done. Make sure any lien is paid out and discharged before you pay.
Pair the report with an independent inspection
The history report tells you what happened. An inspection tells you what condition the car is in now. Use the report to brief your mechanic: "there's a $4,000 front-end claim from 2021, check the rad support and the frame rails." That's a much better inspection than "give it a once-over."
A Safety Standards Certificate isn't the same as a pre-purchase inspection. It only confirms minimum safety standards on one day, as our safety certificate guide explains. Combine the report, an independent inspection and a proper test drive, and you'll have covered the important bases.
Common questions
Does a CARFAX Canada report show liens?
Only the version with a lien check does. CARFAX Canada says its standard vehicle history report doesn't include lien information, and it doesn't report US-based liens. In Ontario you can also search the Personal Property Security registry through ServiceOntario's Access Now.
What does a $0 claim mean on a CARFAX report?
There's damage in the car's history, but the repair cost isn't known. Common reasons are a denied claim, an open claim, or a repair close to the deductible that the owner paid directly.
Is a car with no reported accidents guaranteed accident-free?
No. A report only includes what participating data sources have sent to CARFAX Canada. Repairs paid in cash without an insurance claim may never appear, so get an independent inspection either way.
Should I buy a Rebuilt car in Ontario?
It can be a reasonable buy at the right price, if it passed a structural inspection and the seller can show what was repaired. Expect it to be worth less than an equivalent car with no brand, now and when you sell it, and have a mechanic check the repair quality.
What's the difference between Salvage and Irreparable?
A Salvage vehicle can be repaired and, after passing a structural inspection, re-branded Rebuilt and plated. An Irreparable vehicle is for parts or scrap only and can never be driven in Ontario again.
Your next step
Pick a car, get its VIN, and work through the report section by section before you talk price. When you're ready to look in person, the inventory lists what's on the floor at Flat 6ix Club's indoor showroom at 190 Millway Ave in Vaughan, a short walk from Vaughan Metropolitan Centre station. Call (416) 999-5939, Monday to Friday 9am to 9pm, to book a time. If you're financing, the financing page explains how approvals work for all credit situations.
