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The National Motor Vehicle Title Information System reveals details about a car's past
Unraveling a used auto's past is an important step for consumers, right up there with having a mechanic make sure the vehicle is roadworthy and finding the right insurance policy.
Most of us know about Carfax , which supplies vehicle history reports. But the National Motor Vehicle Title Information System (NMVTIS) may not be as well-known.
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NMVTIS, a nonprofit service run by the federal government, collects data about used car histories by requiring more than 9,000 insurers, auto recyclers, salvagers, junk yards and state vehicle agencies to report title records.
In turn, the NMVTIS provides details about an auto's title background, total loss and salvage history, most recent odometer readings and, in some cases, theft records. Potential car buyers can access data by following simple steps at the NMVTIS website. Reports cost from $2 to $7.
A tool for consumers and states
"The [system] is designed to protect consumers from fraud and unsafe vehicles and to keep stolen vehicles from being resold," NMVTIS explains on its website. "NMVTIS is also a tool that assists states and law enforcement in deterring and preventing title fraud and other crimes."
The importance of knowing who has owned a car and what may have happened to it can help you purchase a dependable ride instead of a sour lemon. In addition, if you know the vehicle's true value, you can better judge whether it's worthwhile to get insurance quotes for collision and comprehensive coverage.
"It's useful for insurance purposes and other reasons," says Peter Foley, the American Insurance Association's vice president for claims administration. "Besides, insurers never want to put their customers into an unsafe car."
Peter Moraga, a spokesperson for the Insurance Information Network of California (IINC), notes that some car insurance companies will only insure a vehicle with a salvage title after an inspection shows it's been safely repaired. Furthermore, some insurers won't offer optional collision or comprehensive coverage if the auto was badly damaged before resale, he says.
Both Foley and Moraga recommend a purchase strategy that combines use of NMVTIS with a mechanical inspection. They also suggest acquiring as much background on the car as possible by considering other sources like Carfax and the National Insurance Crime Bureau (NICB), a nonprofit group that provides information on auto insurance fraud.
"These services are really important because scammers are always looking for a way to circumvent the laws," Moraga says. "For instance, California has very strict laws regarding titles for [a] salvaged vehicle. If a vehicle has been salvaged, it must be stated on the documents.
"What these scammers will do is register the car in a neighboring state like Nevada or Arizona, where the laws don't specify this, and then bring them into California. When they register the car this way in California, there's no record of the car being salvaged."
Christopher Basso, a spokesperson for Carfax, says NMVTIS is valuable, but only as part of the process. He says that Carfax provides more information than NMVTIS, including service and repair information, detailed accident and police reports, and lien and recall history.
Another difference, he says, is that Carfax guarantees it will buy back any vehicle that customers purchased based on an erroneous report. NMVTIS doesn't offer the same guarantee. Carfax, however, is more expensive, charging $35 for one report and $45 for five reports. Some car sellers provide free reports as part of a sales package, however.
"Of course, Carfax recommends getting as much good info as you can before buying a car, including using NMVTIS," he says.
Using more than one report
Consumer Reports, which has studied the various services, concludes that the only way to get a full history is to get more than one report. In a 2009 study, it found that gaps in reporting on a vehicle's background can create an incomplete record of its title, accident and repair profile.
NMVTIS should be able to identify vehicles sold through insurance salvage auctions, including clean-title wrecks, according to Consumer Reports. It says your next step should be to check with Carfax for information about cars that were totaled, odometer tampering and collisions.
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