American
car buyers fall victim to more than 450,000 cases of odometer fraud every year.
Feds say odometer fraud is soaring.
From Automotive News
Federal investigators say they are swamped with odometer fraud cases.
The rise in vehicle leases, coupled with high new car prices and the resulting demand for low mileage used cars, have created a hot market for vehicles with rolled-back odometers.
"It's the biggest mess I've ever seen, and I've been managing this program since 1978," said Richard Morse, chief of the odometer fraud staff for the National Highway Traffic Safety Administration (NHTSA). "The problem spans the country. It tends to be concentrated in states where motor vehicle departments are lax in examining titles for illegal alterations" (i.e. Texas).
"Consumers pay more than they should for vehicles that have been tampered with and they also pay for repairs when the parts, which are older than the bogus odometer readings indicate, wear out," states Morse. "Odometer fraud also costs manufacturers in extra warranty work on vehicles that should be out of the mileage warranty period."
Tampering with an odometer is a federal crime. The U.S. Department of Justice estimates
odometer fraud costs consumers an average of $4,000 per car. Those estimates are figured
by comparing the price paid for the tampered car against its actual value.
NHTSA investigators report that the size of organized odometer fraud rings have grown sharply in recent years. In addition, law enforcement officials say that many private individuals are turning back, or "clocking," odometers. The typical goals: qualifying for extra warranty work or avoiding penalties on an expiring lease on a car with too many miles.
An experienced clocker can turn back the average odometer in about 15 minutes.
Automakers try to deter the practice. General Motors cars, for example, have a plastic tear strip behind the odometer which, if broken, will prevent the number wheels from lining up properly. Professionals, however, can get around the tear strip and other preventions.
Used Car reporting laws differ from State to State. This allows clocked cars to be sold anywhere, from the classified ads to reputable dealers and used-car superstores.
Ken Jost, assistant director of the U.S. Department of Justice, said he worries about odometer fraud by the average car owner as much as fraud by organized rings. With more people leasing, there is a big incentive to turn back the miles to avoid paying a mileage penalty, he said.
"We can bring down those big organizations and feel good about it, but it's real hard
if you've got thousands of individuals each messing with their own odometer."
"1 in 4 automobiles on the road today have altered or "clocked" odometers…"
The average person will not likely be able to tell if the odometer has been clocked by a professional. Only a trained, experienced ASE Master Technician can determine a discrepancy between the wear-and-tear on the vehicle and the mileage stated on the odometer.
