Tips on Buying Cars: Title search, state dmv, honda element

Question
My son is looking to buy a car from a private owner. The carfax report shows the car was originally leased from a dealer in Pa. for a period of 7 months. It was then sold to a private owner who had it for 1 month. It was then sold at auction. It was then leased to a corporation in North Dakota and the title was held in Texas. It was driven for 2 months in North Dakota and then sold again at an auction in Pa. I was just wondering....I heard that some states will issue a clean title to a car which was damaged and repaired as long as it passes an inspection by their state DMV. Is North Dakota one of these states? I am curious as to why this car was taken from Pennsylvania to North Dakota for 2 months and returned to Pennsylvania and sold to a private owner. Something doesn't sound right. The Carfax report shows "no problems." The car is a 2004 Honda Element with 24,960 miles on it---20,000 miles being put on it by the current owner. The car has also been repainted.

Answer
Based on everything you've told me, it's very likely that this vehicle was in a very serious accident.  The original lease was terminated after just seven months (the shortest period of time for ANY new vehicle lease is 24 months), it bounced around from state to state in a short period of time, it's a very popular model, and it shows evidence of repainting.  Any one of these facts would make me suspicious of it being wrecked and rebuilt; all of them together would make me run, not walk, from this car.

I can't speak for the laws in North Dakota, but moving a car from state to state, re-titling it each time, is an indication of someone trying to disguise its past.  Not that ND allows a clean title just because it passes an inspection, but for two other reasons.  First, they're hoping someone issuing the new title misses the fact that it's been wrecked, and will forgot to put it on the new title.  Second, it's possible that the person moving the vehicle around is working with someone within a particular state's motor-vehicle department, someone that will issue a "clean" title for the right amount of money.  Again, I'm highly suspicious of this Element and I'd look elsewhere.