In NB, what should I know about CARFAX reports for car loans?

In New Brunswick, a CARFAX report is an indispensable tool for both lenders and prospective car buyers when securing an auto loan. It provides a comprehensive vehicle history, detailing crucial information such as accident records, reported damage, service history, odometer readings, and, critically, any outstanding liens registered under the Personal Property Security Act (PPSA) in NB or other provinces. For lenders, this report is vital for assessing the true collateral value of the vehicle and mitigating risk; they need assurance that the car has a clear title and its market value isn't significantly compromised by undisclosed issues, especially in the competitive 2025 market.

From a consumer's perspective, understanding the CARFAX report protects you from purchasing a devalued vehicle or inheriting previous financial encumbrances. A clean report helps validate the asking price and ensures the loan amount aligns with the vehicle's actual worth, preventing potential negative equity scenarios. However, while highly informative, CARFAX reports are not exhaustive; they only reflect reported incidents. Therefore, it remains paramount to combine the report's insights with a thorough physical inspection by a qualified mechanic and a test drive to ensure the vehicle's mechanical integrity and overall condition before finalizing any financing arrangements in New Brunswick.