Odometer fraud is one of the most common issues that drivers face when looking to buy a used car. Unfortunately, it’s something that occurs often. Sellers will roll back the odometer in their car, in attempt to increase its value. Cars with low mileage have higher value, since low mileage is associated with light usage and good condition. If you buy a car with which the odometer has been tampered, you are paying more than what the vehicle actually worth, and you may end up paying for repairs and breakdowns.
Odometer Frauds Have a Major Economic Impact
Odometer tampering is illegal under federal law, and is considered a felony. According to Carfax, about 200,000 vehicles have their odometers rolled back annually. The National Highway Traffic Safety Administration estimates that 450,000 vehicles with false odometer readings are sold each year, and costs car buyers over $1 billion. Various studies have found that, on average, a car buyer who purchases a vehicle with a rolled-back odometer will lose about $4,000 in unexpected repairs.
Digital Odometers Can Be Tampered With
Many people think that modern vehicles, that are equipped with digital odometers, are less susceptible to these types of frauds, but they too can be easily tampered with. If anyone wants to alter the mileage reading on a digital odometer, all they need is a laptop and the appropriate software, which can be obtained easily, and they can enter whatever number they want. Tampering a digital odometer doesn’t leave any physical evidence, which is why it’s more difficult to detect, compared to analog odometers.
How to Spot an Odometer Fraud
Private sellers and used car dealers use various methods and techniques to commit an odometer fraud. Sellers have been caught rolling the odometer back manually, replacing it with one that has fewer milage, or altering the odometer history on a vehicle’s title. Because of the different methods, it’s difficult to detect odometer fraud, and people can be easily tricked into buying a car that appears to be younger than it is. However, there are a couple of ways for determining a car’s actual mileage, such as asking to see the title, checking whether the mileage stated on the car’s service records matches the mileage on the odometer, or requesting a vehicle history report.
Additionally, you can spot an odometer fraud by conducting an inspection of the car you are interested in buying. You can start by checking the tires and tread wear. A car that has no more than 20,000 miles on its odometer should have its original tires, which should have very little wear. Also, many other parts, that are usually not replaced until the odometer reaches 50,000 miles, should be original. Lastly, examine the dashboard, and look for signs of tampering, such as scratches on the odometer, pencil marks, or missing screws.
To protect yourself from fraud, get a Vehicle History Report
Check out the Buying and Selling section for more used car tips