Interpretation ID: aiam3826
Vintage Cars & Restoration Center
560 N.E. F Street
Grants Pass
OR 97526;
Dear Mr. Clark: This is in response to your letter of March 5, 1984 in which yo request the opinion of the National Highway Traffic Safety Administration (NHTSA) regarding whether you are permitted, under the Federal Odometer law (Title IV of the Motor Vehicle and Cost Savings Act, 15 U.S.C. S1981, *et seq*.), to turn the odometers, on the restored vintage automobiles which you sell, back to zero. It is the opinion of this agency that you may not.; Section 404 of the Act, 15 U.S.C. S1984, makes it unlawful for an person to 'disconnect, reset, or alter or cause to be disconnected, reset, or altered, the odometer of any motor vehicle with intent to change the number of miles indicated thereon.' The term odometer means an instrument for measuring and recording the actual distance a motor vehicle travels while in operation. Although each motor vehicle which you sell has been restored and although each may be, as you claim, 'better than it was as a new car', the odometers must continue to reflect the actual miles which these vehicles have travelled.; The Federal odometer law also requires that a written disclosure of th mileage registered on the odometer by provided by the seller of a motor vehicle to the purchaser at the time ownership of the vehicle is transferred. If the odometer mileage is incorrect, the Act requires that the purchaser be furnished with a written statement to that effect. 15 U.S.C. 1988, 49 C.F.R. S580.4. All dealers and distributors of motor vehicles are required to retain a copy of each odometer disclosure statement which they issue or receive. These statements are to be retained for four years at their principal place of business. 49 C.F.R. S580.7.; NHTSA found, however, that the value of antique vehicles is determine not by the number of miles travelled by such vehicles, but rather by their age, condition and scarcity. The Agency therefore exempted from the odometer disclosure requirements of section 580.4, vehicles which are 25 years old or older. 49 C.F.R. S580.5(a)(3). NHTSA also exempted from these requirements, vehicles having a gross vehicle weight rating (GVW) of more than 16,000 pounds, S580.5(a)(1), and vehicles which are not self- propelled, S580.5(a)(2). Please note that these are exemptions from the odometer disclosure requirements only. They do not permit tampering with the odometer.; Before you decide whether or not to issue odometer disclosur statements for the 25 years old and older vehicles which you sell, however, you should consider that at least two Federal District Courts have declared the exemptions to be void. The courts found that NHTSA had exceeded its authority in fashioning exemptions to the odometer disclosure requirements. *Lair v. Lewis Service Center*, 428 F.Supp. 778 (D.Neb. 1977), *Davis v. Dils Motor Company*, 566 F.Supp. 1360 (S.D.W.Va. 1983). These cases did not address the validity of the exemption of 25 year old and older vehicles. They addressed instead the validity of the exemption of vehicles having a GVW of more than 16,000 pounds. Their finding, however, that the Agency lacked authority to create the exemptions, may equally apply to this case.; Their findings are not binding on other courts, and the Agenc continues too believe that the exemptions it created are valid. It is important that you consider these decisions, however, since another court could find them well-reasoned or persuasive, and follow the findings that they reached.; If you have additional questions regarding the requirements of th Federal odometer law, please call Heidi Lewis Coleman of my staff at (202) 426-2992 or write to her attention.; Sincerely, Frank Berndt, Chief Counsel