How to Prevent Odometer Fraud

Odometer fraud is a common problem worldwide. This is done to mask the mileage on used cars. This is a serious problem for used-cars buyers who are unaware of the problem. This can lead to frustrating breakdowns and repairs. Odometer fraud causes a lot of money to be lost by an unsuspecting buyer.

Each year approximately 3 million used cars have their odometers rolled back an average of 30,000 miles. According to the National Highway Traffic Safety Administration, odometer fraud throughout the country results in consumer losses of approximately four billion dollars annually.

According to AAA the difference in the value of a vehicle with 30,000 miles and 70,000 miles is approximately $3,600. When increased finance, insurance and repair costs are added, the loss to a consumer who purchases a vehicle with an altered odometer can be more than $4,000.

Millions of vehicles receive new titles each year as they are sold at auction to wholesalers and dealers. Unscrupulous operators often commit fraud by recording lower mileage on the new title application, changing the odometer reading and cleaning the vehicle so its appearance matches the lower mileage reading. In many cases, the dealer selling the vehicle to the consumer may not be aware the odometer was altered by a wholesaler or at the auction.

To spot possible fraud, AAA urges motorists to have a thorough vehicle inspection performed by a qualified technician. An inspection can spot telltale signs of excessive mileage such as engine wear, emissions problems and suspension and steering component wear. Also, since original tires usually last up to 60,000 miles, new tires on a vehicle with an odometer showing 30,000 miles are a good reason to be wary.

Tips to Safeguard Yourself from Odometer Fraud:
• Visually inspect the car to see if its condition matches the miles shown on the odometer. Check to see which parts have been replaced. Unscrupulous individuals sometimes use paint to make old parts look newer.
• Check the inspection certificate. It will have the date of inspection, mileage at the time of inspection, place of inspection and the inspector's name recorded on it.
• Look for lube or maintenance stickers on the left doorframe, in the glove compartment, under the hood, in the trunk, etc. These often contain mileage information.
• Check with the manufacturer to see what work was done under the warranty and what the mileage was at the time the work was done.
• Check to see if the numbers on the odometer gauge are aligned straight across. If they are crooked, the odometer may have been tampered with.
o If the car has a General Motors mechanical odometer, the spaces between the numbers should be black. If they are silver or white, the odometer has been tampered with.
o If the car has an electronic odometer, it has been designed to show an asterisk or some other sign if it has been tampered with. Information regarding this will be contained in the owner's manual.
• Research the vehicle's title history through a commercial title checking company.
• Be suspicious if the vehicle was sold several times in a few months.
• Be skeptical of former fleet vehicles with low mileage. These vehicles are driven an average of 32,000 miles per year and are almost never taken out of service early.

Related Links:
Odometer fraud - Wikipedia
How to Avoid Odometer Fraud