Odometer Fraud Can Cost Motorists Thousands, AAA Says
30 May 1997
Odometer Fraud Can Cost Motorists Thousands, AAA Says
ORLANDO, Fla., May 29 -- Odometer fraud is a serious threat
to used-car buyers that can cost thousands of dollars and lead to frustrating
breakdowns and repairs, according to AAA.
"Never have the words 'buyer beware' been more appropriate than when
buying a used car," said David Van Sickle, director of AAA Automotive and
Consumer Information. "What you see is not always what you get."
Odometer fraud occurs when illegal changes are made to the mileage shown
on a used vehicle's title and odometer. This is usually done to mask high
mileage on late-model used cars.
The difference in 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.
The current issue of AAA's AUTOgram newsletter examines odometer tampering
and provides consumers with information on how to avoid being victimized.
"The very nature of the used-car market makes it fertile territory for
fraud," said Van Sickle. "A vehicle can change hands several times before
reaching the used car lot and fraud can happen at almost any step in this
process."
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.
Most states carefully monitor the issuing of new titles to prevent a
change to the listed mileage. Several states, however, notably Virginia and
New Jersey, lack adequate oversight of new titles, making them perfect places
for laundering new fraudulent titles.
To spot possible fraud, AAA urges motorists to have a thorough vehicle
inspection performed by a qualified technician. An inspection can spot tell-
tale 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.
In addition, AAA recommends consumers research the vehicle's title history
through the state department of motor vehicles or through a commercial title
checking company. Be suspicious if the vehicle was sold several times in a
few months or was previously titled in New Jersey or Virginia. Motorists also
should 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.
A free copy of AAA's AUTOgram newsletter can be obtained by sending a
self-addressed business-size envelope to: AUTOgram/Odometer, MS 75, 1000 AAA
Drive, Heathrow, FL, 32746.
AAA is a not-for-profit federation of 99 clubs with more than 1,000
offices providing more than 39 million members in the U.S. and Canada with
travel, insurance, financial and auto-related services. AAA's automotive
services are provided through a network of more than 37,000 service vehicles
and more than 4,300 Approved Auto Repair facilities.
SOURCE American Automobile Association
