Remember that low mileage example you were eyeing in the classifieds; what are the chances its odometer might have been tampered with?
Well, higher than what you may have originally anticipated, according to a new study from Carfax, which is an online service company that supplies vehicle history reports to individuals and businesses on used vehicles in the U.S. and Canada.
Carfax researchers scoured through their database and arrived to the conclusion that more than 190,000 cars have their odometers rolled back every year in the States, causing car buyers potential damages in excess of $760 million in lost value and unexpected repairs.
The data indicates than there an estimated one million (!) vehicles with rolled-back odometers in every state, with consumers in California, Nevada, Massachusetts, New York and Texas running the highest risk of buying one of these vehicles.
“Odometer fraud is a calamity for car buyers,” says Larry Gamache, communications director at Carfax. “There are serious problems that can arise from a rollback. Older, deteriorating parts lead to unexpected repairs while unperformed maintenance for the true mileage may compromise the safety and performance of these cars. Not to mention, each victim loses thousands of dollars because they pay much more than these cars are really worth.”
According to the researchers, most rollbacks have at least 50,000 miles (about 80,000 kilometers) shaved off their odometer, with 14 to 15 year old cars being the most susceptible to this practice.
“Professional con men likely are taking advantage of longer vehicle lifespans and readily-available devices to dupe unsuspecting consumers,” says the report. “An odometer correction tool is easily found online and can be used to illegally alter digital odometers. Many rolled-back cars are sold through online classifieds and private sales, but some criminals attempt to trade them in at dealerships as well.”
According to Carfax, potential buyers worried about tampered odometers should keep in mind the following tips when buying a used vehicle (…including, of course, checking / buying a report from the website – they also have an odometer odometer fraud section at www.carfax.com/odo):
- Check that the car’s wear and tear is consistent with the odometer reading.
- Ask the seller for service records and note the mileage on them.
- Buy from a recommended dealership or trusted seller.
- Be wary of ‘too good to be true’ deals or overly-aggressive sellers who want a quick sale.
- Get a Carfax Vehicle History Report from the seller or at Carfax
- Have a trusted mechanic thoroughly inspect the vehicle and check its computer.
From these tips, we’d say the most important is No2, regarding the service records. Not only can you confirm the mileage, but you can also make sure that the car has been taken care of and see what problems it had in the past.
We’d also advise owners of cars to keep their service records and receipts, as having something like this increases the value of the car. And from prior experience, I’d say don’t take everything you see on Carfax for granted, as there have been instances where the Carfax comes out clean, yet the car has been in an accident; just use it as one piece of a much bigger puzzle needed to be solved.
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