Interpretation ID: nht74-4.21

DATE: 08/14/74

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: Linch-Jones Incorporated

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your August 9, 1974, telephone request for a clarification of a transferor's duties under the disclosure requirements of the Federal odometer law.

The odometer requirements of the Motor Vehicle Information and Cost Savings Act specify that the transferor of a vehicle provide written disclosure to the transferee of the mileage registered on the odometer at the time of the transaction. If the transferor knows that the odometer reading is incorrect for reasons other than calibration error, a statement to that effect must also be executed at the time ownership of the vehicle is transferred.

In the situation where the accuracy of the odometer is in question, the transferror is required to state that the mileage indicated on the odometer is incorrect in accordance with the form specified in @ 580 of 49 CFR Part 580, Odometer Disclosure Requirements, if there is credible evidence indicating the inaccuracy. If the transferror has no firm basis for a conclusion that the odometer reading is incorrect but feels that it may be wrong, he does not violate the Act by indicating that the true mileage may differ from that shown. In so doing, he provides more information than required, and is not guilty of any violation.

A statement that the mileage may differ from that indicated on the odometer would only be a violation where positive evidence exists suggesting that the odometer reading is incorrect. In such a situation the transferor must inform the buyer of the inaccuracy in the manner prescribed in the odometer disclosure requirements.

If you are in need of any further information, please let us know.