Interpretation ID: aiam3187
Esq.
7976 Seminole Boulevard
Suite 6
Seminole
FL 33542;
Dear Mr. McDevitt: This is in response to your question to Mr. Schwartz of my offic concerning the need to prepare an odometer statement for a vehicle which is declared a total loss by an insurance company.; No odometer disclosure statement is required for a vehicle that is total loss. The National Highway Traffic Safety Administration (NHTSA) has determined that when there is no possibility that the vehicle can be put back on the road then it ceases to be a motor vehicle for purposes of the Federal odometer disclosure requirements.; If a vehicle is badly damaged, but will be rebuilt, an odomete disclosure statement must be issued. An insurance compnay that sells to a salvage dealer a vehicle that can be put back on the road must issue a disclosure statement to that dealer. The salvage dealer who rebuilds the vehicle must then issue a disclosure statement to the party who purchases the rebuilt vehicle. Likewise, if a salvage dealer sells the vehicle to someone else who is going to rebuild the vehicle, the salvage dealer must issue a disclosure statement to that person. Each time the ownership of that vehicle is transferred, the transfer must be accompanied by an odometer disclosure statement prepared by the owner and presented to the buyer. This requirement does not end until the owner makes a good faith determination that the vehicle cannot be put back on the road. The owner should make that determination and not rely on the buyer's representations as to how the vehicle will be used.; Sincerely, John Womack, Assistant Chief Counsel