Interpretation ID: aiam3548
Wisconsin Automobile Truck Dealers Association
P.O. Box 5345
Madison
WS (sic) 53705;
Dear Mr. Williams: This is in response to your letter of November 17, 1981, proposing a amendment to Section 580.6 of the Odometer Disclosure Requirements. 49 CFR 580 *et seq*. We regret our delay in responding. Specifically, you proposed the inclusion of a certification on the odometer disclosure statement that 'the odometer reading is not known to be the actual mileage by the seller.' After consideration of this suggestion, we believe that such a certification of lack of knowledge would tend to defeat the purposes of the Federal odometer laws and we, therefore, cannot recommend such a certification for inclusion in the odometer disclosure statement.; Section 408 of the Motor Vehicle Information and Cost Savings Ac requires that each transferor of a motor vehicle furnish to the transferee a written statement certifying the accuracy of the mileage. 15 U.S.C. 1988. The regulations establish a specific scheme for the certification of the accuracy of the odometer reading 49 CFR 580.4(c)(1) - (3). Where a transferor has knowledge that the odometer reading is inaccurate, the regulations require the transferor to certify that the mileage is not accurate and should not be relied upon. However, where the transferor has no reason to believe that the odometer reading is inaccurate, the dealer must certify the accuracy of the odometer reading to the subsequent purchaser. Of course, this scheme also permits a dealer to rely on the statements of prior owners and transferors. This certification scheme ensures as much as possible a reliable and accurate mileage history of a vehicle without subjecting any party to liability without fault.; The purpose of this scheme is to make the practice of alteration o odometers without detection more difficult by creating a record of the mileage stated and acknowledged by buyer and seller at each transaction. Such a scheme allows a purchaser to search the chain of transactions to determine whether any previous title holder has reduced the mileage. This purpose would be defeated by any change in the scheme which allows a transferor to avoid making a mileage statement or to make an equivocal statement. Accordingly, unless there is a more compelling reason to allow the form of certification you propose, we would recommend against such an amendment.; If you wish to have your proposal considered more formally by th agency you may petition for rulemaking pursuant to the procedures set out at 49 CFR Part 552. We are enclosing a copy of this regulation.; Sincerely, David W. Allen, Assistant Chief Counsel