What is an Odometer Disclosure Statement?
An odometer disclosure statement declares the actual mileage on your vehicle. They are required when buying a new car or selling a used one.
Written by Jacqulyn Graber
Reviewed by Georgina Grant
Table of Contents
- How does an odometer work?
- How to check the odometer reading
- What is an odometer disclosure statement?
- Odometer fraud
- How to insure your used vehicle for less
- FAQs
Load full table of contents
An odometer disclosure statement declares the mileage on your vehicle. When you
buy a new car
or sell a used one, a required odometer disclosure statement must state whether or not the vehicle’s odometer reading is accurate.Mileage will have a major effect on the value of a vehicle—high mileage motor vehicles cost much less than similar vehicles with fewer miles. For this reason, odometer disclosure statements have been implemented to help prevent odometer fraud and ensure that you’re not getting ripped off by your used car salesperson.
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How does an odometer work?
Odometers measure the total distance that your vehicle has traveled. They typically work by counting wheel rotations and assuming that the distance traveled is the number of wheel rotations multiplied by the tire’s circumference.
Keep in mind that your odometer will be most accurate when your car or motorcycle is equipped with standard-sized tires that are in good condition and properly inflated.
How to check the odometer reading
To check your odometer, you’ll need to look at your vehicle’s dashboard for the number indicating your vehicle’s current mileage. Exactly where to find this number—and what it looks like—will depend on the age of your vehicle: older vehicles have mechanical odometers while newer ones have digital odometers.
Mechanical odometer
Older vehicles will have mechanical—or analog—odometers, which is a physical set of numbers. Look for a small rectangle containing 5 to 6 numbers, typically located near your vehicle’s speedometer.
Digital odometers
Newer vehicles will have digital odometers—sometimes called electronic odometers. These may still look like a small rectangle located near your vehicle’s speedometer (just with a digital number display instead of a physical one). Or, you may need to adjust your dashboard settings to select your odometer display. Details on how to do this can be found in your owner’s manual.
What is an odometer disclosure statement?
An odometer disclosure statement declares the number of miles on your vehicle and certifies that it is correct (i.e., it has not been tampered with).
You’ll have to complete the odometer disclosure statement before a vehicle undergoes a transfer of ownership.
If you’ve recently sold a vehicle, you would’ve had to disclose your mileage using a generic form. Different states might have specific ways for you to report your mileage. For example, on a California vehicle title, there is a section for the odometer disclosure.
Why an odometer disclosure is important
Odometer disclosure statements are required by federal and state law to prevent odometer fraud. These disclosure statements ensure that a vehicle’s mileage is stored in a database and updated every time the vehicle is sold.
When do I need an odometer disclosure statement?
Performing a mileage reading and formally reporting it is required by law for most vehicles when they are being bought or sold. If you don’t declare your true mileage, you can face fines or even imprisonment.
But there are different requirements for each state. For example, in California, you don’t have to disclose the mileage for vehicles that are more than 10 years old.
You’ll also qualify for an exemption if you’re driving a commercial vehicle with weight limits. Vehicles sold by an auto manufacturer directly to a dealership and transferred vehicles that have never been sold also don’t require disclosure statements.
Odometer fraud
Odometer fraud primarily affects the used car market by skewing a vehicle’s resale value. This is because motor vehicles with higher mileage sell for much less than similar makes and models with lower mileage from the same model year.
Shady used car sellers might attempt to lower the odometer’s mileage so that they can get more money for the car they’re selling. If an odometer is tampered with, it could mean you’re buying a car with far more wear and tear than you expected.
Odometer tampering
If your car has a mechanical odometer, it’s possible to open the instrument cluster and physically turn back the numbers to display lower mileage. If your car’s odometer is digital, a hacker can tamper with the vehicle’s computer to fake low mileage.
How to prevent odometer fraud
Federal laws and odometer disclosure statements have been put in place largely to prevent odometer fraud.
If you’re considering purchasing a used car, ask to see the certificate of title and compare the recorded mileage with the vehicle’s odometer reading. Examine the title extremely closely if the mileage seems obscured or is difficult to read.
You can also examine the vehicle itself for obvious signs of wear and tear. For example,the vehicle’s age, as well as wear on the gas, brake, and clutch pedals should also seem consistent with the amount of miles displayed on the odometer.
You can verify the mileage on a vehicle you want to buy by getting a vehicle history report and inspection records from websites like
Carfax
.How to report odometer fraud
If you suspect odometer fraud, you should immediately
contact the National Highway Traffic Safety Association (NHTSA)
. Your individual state may also have an odometer fraud enforcement agency—sometimes through the DMV—that you can contact with questions or information.
How to insure your used vehicle for less
If you’re buying a used car, you’ll want to make sure it has reliable insurance coverage, regardless of the vehicle’s mileage.
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FAQs
Is the odometer reading the same as mileage?
Yes! If someone is referring to your vehicle’s “mileage,” they are referring to its odometer reading. Keep in mind that, if the vehicle in question was a victim of fraud, there will be an odometer discrepancy, and the number on the odometer will not represent the vehicle’s actual mileage.
What is the maximum reading that an odometer can have?
Most modern odometers have 6 digits, meaning they theoretically max out at 999,999 miles. However, most vehicles reach their maximum mileage long before this—typically somewhere around 200,000 miles with consistent care and maintenance.
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