Interpretation ID: nht73-5.43

DATE: 11/05/73

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: Gerald Ahronheim

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your request for a statement of your odometer disclosure obligations under the Motor Vehicle Information and Cost Savings Act, Public Law 92-513.

Under the Act, all transferors must make a "mileage statement" to the transferee. "Transferor" means any person who transfers his ownership in a motor vehicle by sale, gift, or any means other than by creation of a security interest. This includes a dealer transferring a new or used vehicle. The only exceptions to the requirement are for vehicles over 16,000 pounds gross weight rating, non-self-propelled vehicles, vehicles 25 years old or older, and new vehicles sold by a dealer to another dealer for resale.

The statement must contain (1) the odometer reading, (2) date of transfer, (3) transferor's name and current address, (4) vehicle identification or serial number, make, model, year, body type, last plate number, (5) a statement that actual mileage differs from recorded mileage if such is the case and the transferor knows it, and (6) reference to the Motor Vehicle Information and Cost Savings Act with the statement that incorrect information may result in civil liability under it. An example of an adequate statement and format is enclosed for your information.

The federal government does not print these forms but several commercial printers have prepared Federal disclosure forms for the convenience of dealers. Alternatively, the statement

may be included in the bill of sale, or other transfer document. In any case, it must be completed and signed prior to the transfer. Either the original or carbon copy may go to the transferee. You can see that the transferor must make a statement about actual mileage only if he knows that it differs from recorded mileage. A person like yourself who has no knowledge of odometer accuracy would only state the recorded mileage.

A copy of the Act is also enclosed for your information.

ENCLS.

October 9, 1973

Dear NHTSA

This note is prompted by Sylvia Porter's column which appeared in the Detroit Free Press of Wednesday, October 10 1973 (page 6-C) concerning the 1972 Motor Vehicle Information and Cost Savings Act.

As one who has owned several previous-owned cars and who doesn't anticipate purchasing any new car in the near future, I am concerned about possibly unwittingly violating the 1972 act, of which I was not previously aware. For example, I have sold two cars which I had bought used in the past 13 months, and now am driving a 1951 automobile which may follow its predecessors. How can I guarantee the mileage of these cars? I can't attest to the honesty of the previous owners, and even though both cars were purchased in earlier times I have no way of verifying anything which could have been tampered with. Does the Act protect a seller from unwittingly becoming liable for omissions or commissions of others?

What is the document -- "Disclosure Statement" -- referred to by Ms. Porter? Is this a standard form, an amendment to a bill-of-sale, or anything in a contractual form? Where are these documents to be obtained, and who must complete them? Must one be furnished with every vehicle sale (e.g. motorcycle, bicycle, ORRV) and by any seller (private individual vs. dealer)?

I'd be very grateful for official answers to these questions specifically, as well as for a copy of the Act and any information booklet you may have printed. Thank you very much.

Respectfully,

Gerald Ahronheim