Condition Reports: Your Roadmap to Faster and Easier Buying 

3 mins Sep 25, 2024

A vehicle’s condition report is a detailed snapshot of its current state, and serves as an important resource when buying used wholesale inventory, whether online or in person at an auction. It’s a powerful tool, but sometimes the profusion of data can be tricky to navigate. So here, we’ll help break it all down so you can make smarter and more informed buying decisions. 

What’s included in a vehicle condition report?

Condition reports are created by experienced inspectors or appraisers to provide an unbiased and accurate assessment of certain key components of a vehicle’s condition. Their multipoint inspection focuses on areas such as the exterior, interior and some mechanical components

At OPENLANE, we work with experienced inspectors. Our interactive inspection platform guides the inspector through each inspection that, coupled with a short test drive, results in a report capturing detailed information about the vehicle’s:

• Make, model and VIN
• Mileage
• Exterior, including paint condition and visible dents, scratches or rust
• Interior damage such as rips, stains, odors or burn marks
• Condition of certain mechanical systems including the engine, brakes and transmission
• Status of certain electrical systems, including the lights, radio and battery
• Detected OBD2 codes
• Tire tread depth
• Additional features like navigation systems, sunroof, convertible top, moonroof operation and more

How to use a condition report to make an informed decision 

Using a condition report is essential for confidently making an informed wholesale buying decision. The report can be instrumental in negotiating pricing, ensuring you get the best value for your money. Here are some steps to help you more efficiently and effectively review a vehicle condition report:

1. Review and compare reports for similar vehicles: Chances are, you have your eye on a few vehicles, likely of similar make and model. Comparing condition reports across these options can help you better understand exactly what you’re potentially bidding on, and also help as you assess value and set your relative bidding strategy and max bids for each. Things to pay close attention to are the mileage, any detected trouble codes, whether there is any visible damage to the exterior or interior, and key mechanical and electrical systems like the transmission and brakes. This will help you spot potential issues.
2. Check the vehicle history report: Third-party vehicle history reports pull in detailed information from state motor vehicle departments, insurance companies and other sources about past owners, accidents, thefts, repairs, recalls, odometer readings and more. Coupled with the inspection findings in the condition report, a vehicle history report can help paint a more complete picture of the vehicle so there aren’t any surprises when the vehicle arrives on your lot. OPENLANE includes a free AutoCheck® vehicle history report for each vehicle listed on our platform.
3. Estimate Repair Costs: Details on damages and mechanical issues can help you calculate potential repair costs to make the vehicle frontline ready. This is essential for setting your wholesale bidding and buying strategy (including max bid) and ensuring the vehicle will be a profitable investment after reconditioning.
4. Use pricing and market guides: Pricing and market guides are a great way to make sure that the vehicle price and your bidding strategy are on par with the broader marketplace. On OPENLANE, all vehicle description pages directly integrate Black Book® pricing guidance so you can instantly see the estimated range of what the vehicle is worth. autoniq® can also help you by combining access to all your pricing and market guide subscriptions in one convenient app.

Once you complete these four steps, you’ll have all the information you need to make informed bidding and buying decisions. 

How is OPENLANE changing the game?

OPENLANE’s experienced inspectors have a few superpowers fueled by artificial intelligence (AI) and other cutting-edge technologies to ensure you have the most useful and relevant vehicle information directly at your fingertips when you need it. Dealer vehicles on our platform include the following in their condition reports:

• Code Boost IQ: We capture OBD2 codes directly from the BlueDriver scan and highlight any trouble codes using Code Boost IQ, OPENLANE’s innovative new technology providing you with simple, easy-to-understand color-coded alert banners, so you’re fully informed about potential issues before making a purchase.
• Visual Boost AI™:  Our condition reports typically include at least 25 photos of the vehicle. OPENLANE’s proprietary Visual Boost AI™ technology leverages AI to detect and visually highlight exterior damage on the first eight of these photos, ensuring you can quickly and easily spot any detected damage. 
• Audio Recordings: If we identify a problem with the engine, we’ll record it so you can hear it, too — helping you make the most informed bidding and buying decision. 

These features combine to offer you a detailed and transparent view of each vehicle — from the exterior to the interior to under the hood and everywhere in between — helping you make smarter wholesaling decisions, faster. 

Try OPENLANE today

Condition reports are the key to making sure you are making the best buying decisions and OPENLANE has the best in the business. Think OPENLANE sounds like a good fit for your dealership? Sign up here.