Odometer fraud
Encyclopedia
Odometer fraud, also referred to as "busting miles" or "clocking" (UK and Ireland) is the illegal practice of rolling back odometers
to make it appear that vehicles have lower mileage than they actually do. Odometer fraud occurs when the seller of a vehicle falsely represents the actual mileage of a vehicle to the buyer.http://www.nhtsa.dot.gov/portal/site/nhtsa/template.MAXIMIZE/menuitem.893c19c9fb974f825c420087dba046a0/?javax.portlet.tpst=4670b93a0b088a006bc1d6b760008a0c_ws_MX&javax.portlet.prp_4670b93a0b088a006bc1d6b760008a0c_viewID=detail_view&javax.portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cachetoken&itemID=3d57f7efc9ab8010VgnVCM1000002c567798RCRD&overrideViewName=Article]
Accordingto the Office of Odometer Fraud Investigation at the U.S. Department of Transportation
http://www.nhtsa.dot.gov/portal/site/nhtsa/menuitem.893c19c9fb974f825c420087dba046a0/, odometer fraud is a serious crime and important consumer fraud issue. In the National Highway Traffic Safety Administration
's (NHTSA) 2002 odometer fraud study, the NHTSA determined that 450,000 vehicles were sold each year with false odometer readings, resulting in a cost of over $1 billion annually to car buyers in the U.S.http://www.nhtsa.dot.gov/cars/rules/regrev/evaluate/809441.html In the UK the Office of Fair Trading
estimates the annual cost at £500m.
Common examples of odometer fraud include situations where someone tampers with the odometer
by rolling it back, replacing the odometer and failing to provide the required notice on the vehicle, or where the odometer rolls through all the digits and starts over. Contrary to popular belief, suspending a (modern) running vehicle and running it in reverse will not reduce the odometer count. Late-model used vehicles such as those in lease and rental fleets that accumulate mileage very rapidly are generally thought to be more prone to odometer fraud than new vehicles.
There are a number of ways in which a vehicle buyer might determine existence of possible odometer fraud. Due to federal laws
, states require vehicle purchasers to obtain a title or certificate of registration
. These titles contain information about a vehicle's odometer history. The information can be accessed through each state's Department of Motor Vehicles
. Other options to detect odometer fraud include contacting the vehicle's former owners, conducting a mechanical inspection of the vehicle with particular attention to normal but harmless wear and tear such as to floor-mats and the rubber on pedals (or to suspiciously new such items), and checking the vehicle's history report (see Used car for a list of vehicle history services in different countries).
Odometer
An odometer or odograph is an instrument that indicates distance traveled by a vehicle, such as a bicycle or automobile. The device may be electronic, mechanical, or a combination of the two. The word derives from the Greek words hodós and métron...
to make it appear that vehicles have lower mileage than they actually do. Odometer fraud occurs when the seller of a vehicle falsely represents the actual mileage of a vehicle to the buyer.http://www.nhtsa.dot.gov/portal/site/nhtsa/template.MAXIMIZE/menuitem.893c19c9fb974f825c420087dba046a0/?javax.portlet.tpst=4670b93a0b088a006bc1d6b760008a0c_ws_MX&javax.portlet.prp_4670b93a0b088a006bc1d6b760008a0c_viewID=detail_view&javax.portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cachetoken&itemID=3d57f7efc9ab8010VgnVCM1000002c567798RCRD&overrideViewName=Article]
Accordingto the Office of Odometer Fraud Investigation at the U.S. Department of Transportation
United States Department of Transportation
The United States Department of Transportation is a federal Cabinet department of the United States government concerned with transportation. It was established by an act of Congress on October 15, 1966, and began operation on April 1, 1967...
http://www.nhtsa.dot.gov/portal/site/nhtsa/menuitem.893c19c9fb974f825c420087dba046a0/, odometer fraud is a serious crime and important consumer fraud issue. In the National Highway Traffic Safety Administration
National Highway Traffic Safety Administration
The National Highway Traffic Safety Administration is an agency of the Executive Branch of the U.S. government, part of the Department of Transportation...
's (NHTSA) 2002 odometer fraud study, the NHTSA determined that 450,000 vehicles were sold each year with false odometer readings, resulting in a cost of over $1 billion annually to car buyers in the U.S.http://www.nhtsa.dot.gov/cars/rules/regrev/evaluate/809441.html In the UK the Office of Fair Trading
Office of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
estimates the annual cost at £500m.
Common examples of odometer fraud include situations where someone tampers with the odometer
Odometer
An odometer or odograph is an instrument that indicates distance traveled by a vehicle, such as a bicycle or automobile. The device may be electronic, mechanical, or a combination of the two. The word derives from the Greek words hodós and métron...
by rolling it back, replacing the odometer and failing to provide the required notice on the vehicle, or where the odometer rolls through all the digits and starts over. Contrary to popular belief, suspending a (modern) running vehicle and running it in reverse will not reduce the odometer count. Late-model used vehicles such as those in lease and rental fleets that accumulate mileage very rapidly are generally thought to be more prone to odometer fraud than new vehicles.
There are a number of ways in which a vehicle buyer might determine existence of possible odometer fraud. Due to federal laws
Federal Odometer Act
The Federal Odometer Act, passed in 1972, modified the United States Code to prohibit tampering with a motor vehicle's odometer and to provide safeguards to protect purchasers in the sale of motor vehicles with altered or reset odometers....
, states require vehicle purchasers to obtain a title or certificate of registration
Vehicle registration
Vehicle registration is the compulsory registration of a vehicle with a government authority. Vehicle registration's purpose is to establish clear ownership and to tax motorists or vehicle owners....
. These titles contain information about a vehicle's odometer history. The information can be accessed through each state's Department of Motor Vehicles
Department of Motor Vehicles
In the United States of America, a Department of Motor Vehicles is a state-level government agency that administers vehicle registration and driver licensing. Similar departments exist in Canada...
. Other options to detect odometer fraud include contacting the vehicle's former owners, conducting a mechanical inspection of the vehicle with particular attention to normal but harmless wear and tear such as to floor-mats and the rubber on pedals (or to suspiciously new such items), and checking the vehicle's history report (see Used car for a list of vehicle history services in different countries).
Resources
- http://www.nhtsa.dot.gov/portal/site/nhtsa/template.MAXIMIZE/menuitem.893c19c9fb974f825c420087dba046a0/?javax.portlet.tpst=4670b93a0b088a006bc1d6b760008a0c_ws_MX&javax.portlet.prp_4670b93a0b088a006bc1d6b760008a0c_viewID=detail_view&javax.portlet.begCacheTok=com.vignette.cachetoken&javax.portlet.endCacheTok=com.vignette.cachetoken&itemID=2f68d67f065c8010VgnVCM1000002c567798RCRD&overrideViewName=ArticleContact Information for All State Departments of Motor Vehicles]
- Federal Odometer Laws
- Consumer Guide to Avoiding Odometer Fraud