Odometers

National studies have shown that a high percentage of all used cars have had the mileage on their odometer "rolled back" or "clocked" so that the odometer shows less miles than the vehicle has actually traveled. The federal government estimates that over 4 billion dollars per year (an amount greater than the loss caused by auto theft) is lost as a result of odometer fraud.

Con men can add thousands of dollars of illicit profit into the price of a used vehicle through odometer mileage tampering or misrepresentation. Also, since the motor vehicle has been driven more miles than shown, the unsuspecting buyer will be forced to incur expenses for needed repairs or maintenance sooner than anticipated.

ODOMETER TAMPERING IS ILLEGAL UNDER STATE AND FEDERAL LAW

Violators of state and federal odometer tampering laws can be sentenced to jail for up to 3 years in prison and/or be ordered to pay up to a $50,000 fine per violation.

Victims of odometer fraud, whether they be consumers or automobile dealers, have the right to sue under both state and federal law. Victims must prove:

• That the odometer mileage was misrepresented on the vehicle,
• The person or entity who made or was responsible for the misrepresentation, and
• That there was an intent to defraud.

The court will award the victim 3 times his/her actual damages, or a minimum amount of $1,500 (whichever is greater), plus court costs and reasonable attorney fees.

THE LAW PROHIBITS:

• Disconnecting or resetting the odometer with intent to change the mileage reading.
  
• Operating a vehicle with a nonfunctional odometer (with the intent to defraud).
  
• Advertising, selling, using, or installing a device which causes an odometer to register incorrectly.
  
• Knowingly falsifying the odometer disclosure statement.
  
• Failing to attach a written notice of odometer service to the left door frame of the vehicle, or removing or altering such a notice.
  
• A dealer or distributor from accepting an incomplete odometer disclosure statement.
  
• Conspiring with any other person to violate the odometer fraud statutes or related regulations.
  

THE LAW REQUIRES DISCLOSURE:

Both state and federal law require that a mileage disclosure be made at the time of transfer of a motor vehicle, which means whenever a vehicle is bought or sold, or at the end of a lease agreement. These requirements apply to the transfer of all motor vehicles, regardless if the transfer occurs at a dealership, used car facility, or between private individuals. (Heavy trucks and vehicles 10 or more years old are exempt from the disclosure requirements).

Under the federal Truth in Mileage Act, odometer disclosure is required to be made on the motor vehicle's Certificate of Title. New titles issued since the enactment of the Truth in Mileage Act contain spaces for the odometer disclosures. However, the law recognizes that there are certain situations in which the odometer disclosures need to be made on a separate form. Two common situations that require the use of an odometer disclosure form separate and apart from the title are:

• When the original title is not available at the time of sale (such as when the title is being held by a third party such as a bank or lien holder), or
  
• The title form predates the Truth in Mileage requirements and the odometer disclosure information is not printed on the title.
  
• Both buyer and seller should receive and keep a copy of the completed form or title.

Click here for an odometer disclosure statement. This form complies with the statutory requirements by disclosing:

• The odometer reading at the time of transfer.
  
• The date of the transfer.
  
• The transferor's (seller's) or Lessee's name, address, and signature.
  
• The year, make, model, body type, and VIN (Vehicle Identification Number) of motor vehicle. [The VIN number is the 17 digit identification number (a combination of both numbers and letters) for your motor vehicle and is found on the vehicle as well as on the title and sale or lease documents.]
  
• A statement that failure to complete or providing a false mileage statement may result in fines and/or imprisonment under Federal and/or State law.
  
• A statement certifying that the odometer reading reflects the actual mileage, or is in excess of the odometer's mechanical limits, or is NOT the actual mileage.
  

RECORD RETENTION:

Dealers, auctions, and lease companies must keep mileage records for five (5) years.

LAWFUL REPAIR:

When an odometer is broken, it is illegal to repair, replace, or reset the odometer to show a different mileage reading than the actual mileage on the vehicle. If the mileage reading on the repaired or replaced gauge cannot be adjusted to reflect the true mileage, the odometer must be set to zero and a sticker indicating the true mileage before service must be attached to the left door frame of the motor vehicle. When the vehicle is sold, the disclosure statement must indicate the odometer error.

HOW CAN CAR BUYERS PROTECT THEMSELVES FROM ODOMETER TAMPERING?

• GET a mileage disclosure statement.
  
• COMPARE the mileage shown on the odometer of the vehicle to the written disclosure statement. Check the mileage readings on titles, prior odometer disclosure statements, warranties, service records, etc. for any discrepancies or signs of alteration. Beware if the mileage statements are "unavailable" -- dealers are required to keep such records for 5 years.
  
• EXAMINE the motor vehicle for clues of tampering. Look for the physical signs of tampering, such as scratches or marks on the odometer, badly misaligned digits on the odometer, missing or loose screws, etc. Look for oil change or inspection stickers under the hood or in the door, and for warranty documents or service records in the glove box. Check the tires and other parts of the vehicle to see if the wear and tear evident on the vehicle corresponds to the mileage being represented on the odometer. Have the vehicle inspected by a reputable mechanic prior to purchase.
  
• CHECK the ownership history of the motor vehicle. Former owners are often the best source(s) for information about the vehicle's mileage, condition, and performance.

CONTACT THE OFFICE OF CONSUMER AFFAIRS IF:

• You suspect that someone has misrepresented a motor vehicle's mileage.
  
• You think the odometer on your vehicle was altered or set back.
  
• You know of anyone engaged in the crime of odometer tampering.

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