Odometer Fraud: Traffic Safety Tips

NHTSA · 1996 · ROSA P / United States. Department of Transportation. National Highway Traffic Safety Administration

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Summary

This 1996 fact sheet from the National Highway Traffic Safety Administration (NHTSA) addresses the consumer protection issue of odometer fraud, defined as the rolling back of vehicle odometers, disconnection of the device, or the provision of incorrect mileage information. The document identifies this practice as a major problem for used car buyers, particularly affecting late-model vehicles with high actual mileage but low recorded readings. The primary motivation for the guidance is to inform consumers of their rights under federal law and to provide practical methods for detecting and reporting fraud, thereby mitigating financial losses associated with purchasing misrepresented vehicles. The text outlines the regulatory framework and procedural requirements established by federal odometer laws. It specifies that odometer tampering is a felony and mandates that sellers certify the odometer reading in writing on the vehicle title. The certification must state whether the reading is true, if the mileage exceeds 99,999 miles due to odometer turnover, or if the reading is not the true mileage. For cases where an odometer breaks and cannot be adjusted to the true mileage, the device must be set to zero, and a sticker indicating the true mileage and service date must be attached to the left door frame. The document also details specific consumer actions, such as checking for physical signs of tampering like misaligned numbers, comparing mileage on oil and inspection stickers, and reviewing previous titles held by the Department of Motor Vehicles. Key findings regarding the economic impact of fraud indicate that buyers may pay an extra $2,000 or more over the true value of a vehicle with a rolled-back odometer. The text highlights leased vehicles as high-risk candidates for fraud, noting they are driven an average of 30,000 miles per year and frequently have their odometers altered upon entering the used market. Remedies for victims include civil lawsuits, where courts may award $1,500 or three times the amount of damages, whichever is greater, plus legal fees, provided intent to defraud is proven. Consumers are also directed to report suspected tampering to the Auto Safety Hotline or state attorneys general. The document includes a Vehicle Owner’s Questionnaire for reporting safety defects, emphasizing that while NHTSA cannot order corrective action for individual cases, it may initiate criminal investigations or recall campaigns based on aggregated data.

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