Odometer Fraud

A vehicle’s mileage is one of the biggest factors in its price, its condition and how long it will last. When an odometer has been rolled back or the mileage is misstated, you pay for a car that’s older and more worn than you were told. Faler Law Group represents California drivers who were sold vehicles with false or misrepresented mileage.

What Is Odometer Fraud?

Odometer fraud happens when a vehicle’s mileage is rolled back, altered or misrepresented so it appears to have been driven less than it has. It can involve tampering with the odometer itself, replacing an instrument cluster without disclosing it, or simply giving a buyer false mileage information on the paperwork.

Lower mileage makes a vehicle look newer and worth more. A rolled-back odometer can also hide when major maintenance is due and make a vehicle seem to have more warranty coverage left than it does.

How Odometer Fraud Happens

• Rollbacks. Mechanical and digital odometers can both be altered to show fewer miles.
• Replaced instrument clusters. A new or used cluster shows different mileage, and the change isn’t disclosed.
• False paperwork. The odometer disclosure on the title or sale documents doesn’t match the vehicle’s real mileage.
• Hidden title status. A vehicle’s title or history is marked “not actual mileage,” and the buyer isn’t told.

Signs the Mileage May Be Wrong

• The mileage on service records, inspection reports or a vehicle history report is higher than the odometer shows.
• Wear on the pedals, steering wheel, seats or floor mats looks heavier than the mileage suggests.
• Oil-change stickers or receipts in the vehicle show a higher mileage.
• The title or history report says “not actual mileage” or shows the mileage as exempt.
• The odometer digits don’t line up, or the instrument cluster looks like it was replaced.
• The price seems unusually low for a vehicle with that mileage.

Your Rights Under Federal and California Law

The federal odometer law

Federal law (49 U.S.C. section 32701 and following) prohibits tampering with odometers and requires a written odometer disclosure when a vehicle changes hands. A person who violates these rules with intent to defraud is liable for three times your actual damages or $10,000, whichever is greater. The claim must be brought within two years after it accrues.

California law

California Vehicle Code section 28051 also makes it illegal to disconnect, turn back or reset an odometer with the intent to change the mileage it shows. Separately, the Consumers Legal Remedies Act (Civil Code section 1750 and following) prohibits dealers from misrepresenting a vehicle’s condition or history, and false statements about mileage can also be fraud.

“Certified” vehicles

Under Vehicle Code section 11713.18, a dealer can’t sell or advertise a used vehicle as “certified” if it knows or should have known the odometer doesn’t show the actual mileage.

Claims against the lender

If you financed the vehicle, the federal “Holder Rule” notice found in most car finance contracts can let you bring your claims against the company that holds your loan, not just the dealer.

What You May Be Able to Recover

Every case is different, but depending on the facts, you may be able to:

• Recover damages under federal law: three times your actual damages or $10,000, whichever is greater, where the violation was made with intent to defraud.
• Undo the sale (rescission), returning the vehicle and getting back what you paid.
• Recover the lost value: the difference between what you paid and what the vehicle was actually worth with its true mileage.
• Seek additional damages in some cases, including punitive damages where a dealer acted with fraud or malice.

Some cases resolve with a settlement that lets you keep the vehicle. Results depend on the facts and evidence in each case.

What to Do If You Suspect Odometer Fraud

1. Pull vehicle history reports, such as Carfax or AutoCheck, and compare the mileage records over time.
2. Gather service records. Ask past repair shops or the manufacturer’s dealers for the vehicle’s service history and the mileage on each visit.
3. Keep your paperwork. Your purchase contract, the title or title application, the odometer disclosure statement, the ad and the window sticker.
4. Take dated photos of the odometer and any wear that seems out of line with the mileage.
5. Don’t trade in or sell the vehicle before talking to an attorney. The vehicle and its records are evidence.
6. Act quickly. Federal odometer claims must be brought within two years, and other time limits apply.

Dealers misrepresent deals in other ways too. Learn about other types of auto fraud.

Odometer Fraud FAQ

Is odometer rollback still a problem with digital odometers?

Yes. Digital odometers can be altered with electronic tools, and the change can be hard to spot without records. Service history, inspection reports and vehicle history reports are often how a rollback is discovered.

What does “not actual mileage” on a title mean?

It means the odometer reading isn’t the vehicle’s true mileage, for example because the odometer was replaced, broken or tampered with. A dealer can’t hide that status or tell you the mileage is accurate when it isn’t.

What can I recover for odometer fraud?

It depends on the facts. Under federal law, a person who violates the odometer rules with intent to defraud is liable for three times your actual damages or $10,000, whichever is greater. California law may also let you undo the sale or recover your losses.

Is there a deadline to bring an odometer fraud claim?

Yes. A claim under the federal odometer law must be brought within two years after the claim accrues. Other claims have their own time limits, so talk to an attorney as soon as you suspect the mileage is wrong.

Does the seller have to tell me the mileage in writing?

Usually. Federal rules require a written odometer disclosure when ownership transfers. For model year 2011 and newer vehicles, that requirement applies until the vehicle is 20 years old. Model year 2010 and older vehicles, and vehicles rated over 16,000 pounds, are exempt.