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- This Fraud Costs The Country Millions
This Fraud Costs The Country Millions
Odometer alteration is more common now than it ever was, but what can you do? We analyze this concerning situation and give you valuable tips.
Issue #158
There are 2.14 million cars with odometer alteration out there.
We’re not joking. 2.14 million! Today, we dive deep into this issue.
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In The Know
This fraud is increasing in the automotive world
What's the first thing you inspect when looking at used cars? If you're like us, you go straight for the mileage. If you do go straight for the mileage, you might be one step ahead of a growing problem with cars: fraud.
If you don't, you should, as it can tell you a lot about the car you're considering buying.
For one, there's use. You automatically know that a car with 300,000 miles has seen some wear and tear, and you probably want to avoid it. If it's a model known for reaching high mileage, such as those on this list, you might feel confident enough to buy it.
This figure acts as a great starting point. After all, a car with lower mileage usually lasts longer (emphasis on usually). At least, that's what this mother-daughter duo believed.
It turned out to be a nasty surprise.
That's because mileage can also tell you a lot about the maintenance, especially if you read between the lines. Let's say you are looking at a car with a CVT transmission and 100,000 miles, such as a Toyota RAV4 or Nissan Rogue.
These two should've gotten their transmission fluid changed by then. By requesting maintenance records, you can cross-reference mileage vs. services performed to see if the numbers add up.
By the way, if you want to have the ultimate guide to buying a used car on Facebook Marketplace, you can take full advantage of our massive discount here.
Mileage is critical. So much so that people selling used cars often go the extra mile (pun intended) to modify odometers and "reduce" their mileage.
Don't think it happens only with older cars. The unfortunate situation this mother and daughter faced isn't new. In fact, it's getting worse, and it affects newer cars, including this Lambo.
Odometer rollback costs the country more than a billion dollars a year, affecting everything from out-of-pocket repairs to insurance claims, as this article explains.
In Pennsylvania, for example, one group orchestrated an odometer fraud scheme that resulted in victims losing more than $100,000. This article details how four people are facing multiple fraud charges.
In 2024 alone, CARFAX detected 2.14 million cars with odometer fraud. That's mindblogging and not the most concerning fact of all. The problem has increased by 18% in the past four years.
But, how does it happen?
It's relatively easy. One of the most common ways is to replace the instrument panel under the excuse that it was damaged. This works better with mechanical odometers than with digital ones. You can also disassemble it and rebuild it with a different mileage.
I've personally taken apart my 1971 BMW's odometer and put it back together, with relative ease. I could've modified it right there.
Digital odometers are usually more challenging to modify, although it's becoming easier. Human creativity means there's always someone looking to tamper with things, and software is now more capable of altering mileage, as this article explains.
The problem is more common in some states, with Wisconsin and Illinois seeing the most growth, as this podcast explains.
Ironically, as cars become more technologically advanced, the problem will undoubtedly become more complex. How can you be confident in a purchase when even automakers are trying to modify mileage? Read more on this unusual story here.
So, what can you do? While checking the mileage is your first step, you shouldn't stop there. With the vehicle's VIN, you can run a CARFAX report to see the vehicle's registered mileage history.
At the same time, you should also have a trusted mechanic who can check the car with a scanner. If you're an avid DIYer, you can also buy your own scanner, which is a handy tool but might be expensive for average buyers.
Here are the best OBD-II scanners you can find, according to Road & Track.
Finally, you should understand your legal options. Did you know that cars that are 20 years old do not require a written mileage disclosure? This is only one of the details, and you can read more about them in this detailed explanation from the NHTSA.
Doing this research and going over these checks takes time and money. It's unfortunate, but with the problem becoming more common, there's no reason why you shouldn't take that extra step. After all, it can save you thousands.
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