Interpretation ID: aiam4260
Oregon Independent Auto Dealers Association
2542 19th Street
S.E.
Salem
OR 97302;
Dear Ms. Wahus: This is in response to your letter of September 16, 1986, to Laurett Carlson in the National Highway Traffic Safety Administration's (NHTSA's) regional office in Seattle, Washington. You asked for the Agency's position concerning automobile dealers who, when issuing an odometer disclosure statement, certify that the mileage is unknown in order to protect themselves against the possibility of future evidence of rollbacks.; Congress found that purchasers rely on mileage as an indicator of th value and condition of vehicles and enacted Title IV of the Motor Vehicle Information and Cost Savings Act, 15 U.S.C. S1981 *et seq*. Section 1988(a) of the Act requires the Secretary of Transportation to prescribe rules requiring any transferor to give a written disclosure (1) of the cumulative mileage registered on the odometer or (2) that the actual mileage is unknown, if the odometer reading is know to the transferor to be different from the number of miles the vehicle has actually travelled. To carry out this mandate, Federal regulation 49 C.F.R. Part 580 was promulgated. Furthermore, Section 1988(a) states that no transferor shall violate any rule prescribed under the section or give a false statement to a transferee in making any disclosure required by such rule.; A Senate report interprets Section 1988 as placing duty on auto dealer to alert purchasers of irregularities in odometers when, in the exercise of reasonable care, they would have reason to know the odometer reading is inaccurate. S. Rep. No. 92-413, (92nd Cong., 2nd Sess.), 1972 U.S. Code Cong. & Ad. News 3971- 3972. If a purchaser receives an odometer statement in which his transferor certified that the odometer reading does not reflect the actual mileage and should not be relied upon, that purchaser, when selling the vehicle, should certify the same. However, if a purchaser receives an odometer statement in which his transferor certified that to the best of his knowledge the odometer reading reflects the actual mileage the vehicle has been driven, and he has no reasonable suspicion that the reading is inaccurate, when selling the vehicle, he should not certify that the reading is inaccurate. If transferors certify the reading as inaccurate in the latter situation, it is the position of the National Highway Traffic Safety Administration that they violate the regulations prescribed under Section 1988, 49 C.F.R. S580.4.; The Federal regulations provide for the inclusion of two sets o certifications on odometer disclosure statements. If the dealers truly wish to insulate themselves from liability when they have a reasonable suspicion that the mileage on the odometer has been altered, they *should* certify that the reading is not accurate, and check the third statement in the first set of certifications. However, none of the three statements in the second set covers a situation where a transferor suspects that an odometer reading is inaccurate, but the odometer was not altered, set back or disconnected in his possession. The Agency allows a transferor to check the first statement and cross out the lines which read, 'and I have no knowledge of anyone else doing so' provided that though crossed out it can still be read. Alternatively, we have no objection to a transferor writing and checking a fourth statement which would read:; >>>I hereby certify that the odometer of said vehicle was not altered set back, or disconnected while in my possession.; <<