Odometer fraud in the United States is costing car buyers about R10 billion a year, according to a government report released this week.
Odometer fraud in the United States is costing car buyers about R10 billion a year, according to a government report released this week.
The report was requested by Congress, and compiled by the Transportation Department’s National Highway Traffic Safety Administration (NHTSA).
The study found there were more than 450 000 cases of odometer fraud every year. This is the illegal practice of rolling back odometers to make it appear that vehicles have covered a lower mileage. These cars can then be sold for much higher prices.
It is believed the practice occurs more often among late-model vehicles that have done a lot of kilometres in a short space of time, such as those that have been leased, rented or used by companies.
US consumers who buy passenger vehicles with rolled back odometers face an increased cost of R23 360 per vehicle purchased, or more than R10 billion a year, the NHTSA study found. These statistics do not include related costs such as inflated financing, insurance, taxes and vehicle repairs that consumers pay due to odometer fraud.
“Odometer fraud puts the safety and well-being of consumers at risk because it misleads them about wear and tear on the vehicle they are buying,” Transportation Secretary Norman Mineta said in a statement.
“This crime preys on consumers who often can afford it least, the people who buy used cars, and I commend those authorities who are helping to protect consumers by enforcing laws against tampering with odometers.”
The study found that only four states regularly verify odometer readings when vehicle titles are transferred and notify buyers when vehicles they are about to buy have lower mileage readings than on previous titles.
