Buying & Selling

Watch Out for Odometer Fraud

Watch Out for Odometer Fraud

Almost every used car advertisement lists the mileage on the car. A general rule is the lower the mileage the better the condition of the car and a higher price can be asked. This leads many people to roll back the odometer in hopes of selling the car for more than its worth. This is known as odometer fraud and is illegal in every state. This used car scam has cost consumers more than $1 billion annually. So how can you tell if the car you want to buy has been fraudulently altered?

The information age has benefitted consumers greatly. Web sites such as Carfax allow you to trace the vehicles VIN number and discover the actual mileage on a car. Ask to see all relevant documentation for the car. This includes the title and any maintenance records. These documents will show the mileage of the car at the time of service. If the seller changed the oil every year at 3,000 miles but the car only shows a net increase of 1,000 miles then you know something is wrong. Have the car checked out by a reputable mechanic. Signs of wear may also raise flags if they are inconsistent with the odometer reading. Check the odometer for uneven number alignment as this may also be a sign of tampering.

Using good old fashioned common sense can help you to avoid becoming a victim of odometer fraud. Ask questions of the seller such as how often they drove the car and how often they had it serviced. If their answers are ambiguous or elusive then continue your search elsewhere. This also holds true for used car dealerships. Although it is nice to think that a legitimate business would not stoop so low, it is up to you to verify the condition of the car. It is also possible the dealership itself was victim to odometer fraud and never knew it.