| October 15th, 2008 by admin |
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How To Avoid Used Car Odometer Tampering
How To Avoid Used Car Odometer Tampering
It happens more frequently than you may think. Once thought to be a problem of the past, odometer tampering on used cars is still prevalent today. In fact, according to the National Highway Traffic Safety Administration (NHTSA), odometer fraud results in nearly $1 billion in losses for used car buyers in the U.S. each year. This happens as a result of artificially inflating the prices of used vehicles. Below, I’ll explain how odometer tampering can affect those who are shopping for a used car. Then, I’ll offer a few tips regarding how to avoid it.
The Problem With Odometer Fraud
Rolling back an odometer constitutes fraud and is illegal. That said, it often happens undetected. Years ago, the NHTSA released a report titled, “The Incidence Rate of Odometer Fraud.” The report explained that used car buyers, on average, paid $2,336 more than they should have as a result of odometer tampering. By rolling back the miles on used vehicles, dealers can inflate prices. Unfortunately, buyers are usually unaware that the car they’re purchasing has many more miles than the odometer suggests. The result is that they pay more for a used vehicle based upon the facade of low mileage.
It’s estimated that dealers can earn nearly 10 cents in extra profit for each additional mile they “roll off” the odometer. For example, if they roll 1,000 miles off, they can charge (on average) $100 more for the car. If they roll 30,000 miles off (not unusual for vehicles that have an excessive number of miles on them), they might charge $3,000 more than the car is worth. For buyers, this can pose a significant problem. They pay more money for a car that will likely break down sooner.
How To Avoid It
There are a number of ways in which you can identify whether the odometer has been tampered with. First, ask the seller for ongoing maintenance documentation. That includes receipts for oil changes, tune-ups, and transmission flushes. Second, compare the odometer with a vehicle title search. A lot of unscrupulous sellers don’t realize that a title search will often give an accurate estimate of their car’s mileage. Third, look for wear and tear on the vehicle’s tires and pedals. If they show more wear than is consistent with the reading on the odometer, it’s possible the mileage has been rolled back.
The most important thing to remember is that odometer fraud happens more often than most people realize. Even the introduction of digital odometers didn’t solve the problem. Learn how to identify warning signs of tampering and you’ll insulate yourself from being taken for a ride.
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