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Plenty of shops won't report damage. Surprisingly, many times the insurance company won't either. Carfax or Autocheck are a great start, but I wouldn't rely on the info 100%.
As to damage to the vehicle, it really depends. If a car has had the nose re-sprayed due to rock chipping, that's one thing, but if actual body damage more than a bumper being replaced from parking too close to the garage wall is involved, I would look for a better car. There are plenty out there in this market that have no questionable history, so I would hold out for one of those.
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