What is it? The credit reporting company Veda Advantage has launched a new business, Veda Auto, with the aim of providing consumers, car industry participants, finance providers and insurers with easily accessible data on the history of vehicles. The information is designed for use by anyone buying, selling or financing a vehicle. It pulls together information from a wide range of sources, including State Government registers of encumbered vehicles, the register of written-off vehicles, Glass's Guide to used-car values and state transport departments. Veda says it identified the need for the service after doing consumer research about used-car buying. It found that 13 per cent of Australian used-car buyers had been misled by the seller. The average cost of unexpected repairs that resulted from the deception was more than $3000. Veda's research also found that consumers were concerned about the legitimacy of information sellers gave them about insurance claims, service history and odometer readings.

How it works Consumers go to the Veda Auto website, vedaauto.com, and apply for a full history of the vehicle they are thinking of purchasing. The fee is $24.95. Reports will tell buyers if the vehicle is encumbered (there is money still owing on a car loan taken out by a previous owner), it will give a valuation, advise if the vehicle is stolen, has been subject to an insurance claim for flood or storm damage and been a repairable write-off or been written off by an insurer. It will give a safety rating for the vehicle and, in some cases, an odometer reading.

Pros Much of the information on Veda Auto is available from other sources but this is the first attempt to pull all those sources together in a single database. That makes it highly convenient. The head of Veda Auto, David Scognamiglio, has been tracking the use of the service since its launch last August and says he has been surprised by some of his findings. Fourteen per cent of reports show a history of serious damage, such as flood damage or a write-off, and 30 per cent show that the vehicle is encumbered. A small number show the registration number and the engine number do not match. The consumer may or may not have been told about these things by the seller. Financiers still have rights over encumbered vehicles, even if they have new owners.

Cons Most of the information relates to the recent history of the car. The search is done using the vehicle identification number (VIN), which will give a history of the car under its current registration.

Registration numbers change if a car is moved interstate, the owner buys a personalised plate or some other transfer is made.

Because of this the view of the vehicle's history may be limited in some cases. Scognamiglio says the group is working with state governments, transport authorities and industry groups to add greater depth to the history of each vehicle. Another drawback is the search has to be done by VIN. When people are out shopping for a used car they will take note of the registration number but not always the VIN. It is only when they come to search the car's history on Veda Auto that they discover they need that extra bit of information.

Scognamiglio says the search system will be upgraded this year to allow people to search using the registration number or the VIN.

In the meantime, buyers should make sure they get the VIN if they want to check the history of the car.