Be Aware of Odometer Fraud!

Susanne Jones
Consumers have less money to spend and when thinking about buying a new car, more and more people are considering a used car instead of a new car. However, with a new car, do you really know what you are getting?

Most consumers compare price, overall condition, and mileage, before making a decision. The worry the seller might be hiding something like a prior accident is on everybody's mind. Nobody wants to get stuck with a lemon. However, in regard to mileage, it is generally taken for granted that the mileage shown on the odometer is the actual mileage the car has been driven. After all, we really have not heard much about odometer fraud in recent years. And nowadays something like an odometer should be tamper-proof to protect consumers, right? Thus, most consumers blindly trust the mileage they see on the vehicle's odometer.

Unfortunately, odometer fraud is not a thing of the past. There are still shady sellers who try to drive up the price of a used vehicle with this little albeit illegal trick. And it can be costly for consumers, if they fall for the trick. Not only do they pay more than the vehicle is worth, but repair costs will also be higher than they should be. The higher the actual mileage on a car, the more likely there is something needing repair.

How can you protect yourself from odometer fraud? First of all, be aware that not only the old-style analog odometer can be rolled back, but also the new digital ones. Nothing is tamper-proof; it just might take a little longer to do it. Thus, both types of odometers will have to be inspected by you for signs of manipulation.

Sometimes the signs of manipulation are very obvious. Tampering is more easily visible on analog odometers, where the numbers rotate. If the numbers scrape or the odometer does not work at all, there is obviously a problem. If the odometer appears to be working fine, but the digit on the far left seems to be misaligned, or there are even pencil marks on the numbers or the number face, it's an indicator that somebody messed with the odometer. For digital odometers, a tempering sign is something like an asterisk or 'E' instead of a number.

Furthermore, you should be suspicious, if there are scuff marks and scratches around the gauge cluster and the edges of the lens. Any sign that the dashboard has been taken apart especially in the odometer, area are suspect. A very obvious indicator that something has been done is missing screws.

Wear and tear of the vehicle should also match the mileage. Ask yourself, does the overall look of the vehicle match the low-use mileage? For example, higher mileage cars have wear and tear signs on the carpet around the pedals. Similarly, there are certain parts on a car that will need replacement after a high-mileage use. Such items are for example shocks and springs. Therefore, you will have to go on your knees to check the underbody of the car.

Another way to check out actual mileage is to look through the vehicle's paperwork. Tags on the car, service receipts, and similar paperwork might have a mileage indication on them. If the mileage in the paperwork is higher than the odometer mileage, there is obviously a problem. Getting a Carfax Vehicle History Report is also recommended. If the car has been sold before, this report will show the mileage as reported when the title changed to the new owner. As an additional bonus, the report will provide you with information on any prior damages the car might have incurred.

Published by Susanne Jones

I'm originally from Germany. I have a law degree from the University of Passau, Germany, including the German equivalent to the American Bar exam, and a M.S. in Finance from NIU. After working as a Financial...  View profile

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