Odometer Tampering? Really???

You may have seen the news recently, where two used car dealerships were charged with odometer tampering. By now you would think those who try to get around the law knows it is not worth it and that you will get caught. With today’s electronic age and tracking of titles it is not worth the risk. Those who violate the law cause all dealers to be scrutinized by the public and building that confidence is hard to overcome.

Penalties for odometer tampering include both State & Federal violations. They also include civil damages including three times damages plus attorney fees and criminal penalties which include large fines and jail time.

Because of this situation, we have had dealers calling us on proper odometer disclosure. Here are a few reminders.

Be sure you are keeping a clean paper trail of all paperwork particularly on odometer disclosure. Odometers must be disclosed with every kind of sale of a motor vehicle. Even those that are exempt should be stated as exempt. This creates a clean paper trail. It is still a violation to roll an exempt vehicle’s odometer.

Disclosures must be on the secure title, typically on the back of the Utah title, or if it is full, on a subsequent secure reassignment of title. All reassignments must accompany the original title showing a clean trail. There are no limits in Utah on how many reassignments can be attached.

Using a carbonless odometer form to disclose odometer reading can be used for the dealership records only and cannot be used for legal disclosure or transfer. It would be only for your own use or tracking.

As a general forms compliance reminder, we suggest that you not create forms that are combined together. We have spoken with many dealers who end up in court and show they have a form signed but are not able to confirm to the judge that all the sections of the form were explained. By having separate forms signed eliminates all discussion as to whether you explained the disclosure when the customer signed it.

We recommend that dealers never combine the odometer disclosure form whether signing for transfer or for the dealer’s records. Your records will play an important role if you have to prove yourself in court. Putting an odometer statement on a motor vehicle contract or on a wholesale only agreement provides no protection for you and only complicates compliance.

For more information on disclosure compliance for dealers and what you should be doing for best practices and strong protection, contact IDS today. We have compliance seminars scheduled throughout 2012. We are dedicated to the integrity of the industry through education. Don’t create a problem for yourself by not knowing. It is not defensible. We are here to help.