Interpretation ID: nht74-3.25

DATE: 09/27/74

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: Solomon; Religan & Blake

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your letter of September 9, 1974, inquiring as to the compliance of the AADA-65 odometer disclosure form with the Federal odometer requirements.

Your letter suggests that this agency has "approved" the Form AADA-65 as complying with the provisions of the odometer regulation. We are, however, unaware of any past correspondence between this office and either the Arizona Automobile Dealers Association or Norwick Printers of Oklahoma concerning the validity of a disclosure statement.

The Form AADA-65 enclosed in your letter fails to comply with our regulation in several respects. The statement referring to the mileage indicated on the odometer at the time of the vehicle's transfer must be phrased to indicate that the disclosure document was executed at the time of the vehicle's transfer, not at some later time. In addition, the statement must be written in such a manner that it is clear it is to be completed by the transferor alone. To satisfy these criteria the statement should read

"I, , state that the odometer mileage indicated on the vehicle described above, at the time of transfer to , is as follows:"

The portion of the document provided for disclosure of the odometer mileage and a statement as to its accuracy is also deficient on the AADA-65 form. Instructions are necessary on this part of the form to ensure that it is completed in a consistent manner by all persons. The number of miles indicated on the odometer at the time of the vehicle's transfer must appear. Also, if the seller wishes he may indicate on the form that the actual mileage is over 100,000 miles. In addition, the statement concerning the accuracy of the vehicle's reflected mileage must be more complete than the one included in the AADA-65 form. Completion of the disclosure document in accordance with these directions may be accomplished as follows:

"(Complete line 1; and, where applicable, complete line 2 and check line 3:)

1. miles

2. total cumulative miles (if over 100,000).

3. [ ] I further state that the actual mileage differs from the odometer reading for reasons other than odometer calibration error and that the actual mileage is unknown."

You expressed some confusion concerning the circumstances under which a statement should be made that the actual odometer mileage is unknown. The intended purpose of the disclosure statement is to inform the purchaser of a vehicle as to the accuracy of the mileage registered on the odometer. In order to accomplish this purpose it has been determined that where the seller of a vehicle has good reason to believe that the mileage registered on the odometer differs from the vehicle's true mileage he must so inform the buyer in positive terms. In the situation where the transferor is uncertain whether the mileage is accurate, he must determine whether there is a credible basis for an assumption that the mileage is either correct or incorrect. If he has good reason to believe that the mileage is inaccurate, even though he is not positive, he should check the statement saying that the mileage indicated on the odometer is incorrect. A statement from a prior transferor that the odometer mileage is incorrect constitutes sufficient basis for a like statement upon subsequent transfer of the vehicle.