Interpretation ID: nht75-5.37

DATE: 09/17/75

FROM: AUTHOR UNAVAILABLE; Frank A. Berndt; NHTSA

TO: William C. Koch; Assistant Attorney General for Consumer Protection

TITLE: FMVSR INTERPRETATION

TEXT: As you requested in your August 29, 1975, telephone conversation with Karen Kreshover of this office, I am forwarding to you an interpretation of Section 580.5(b) of 49 CFR Part 580, Odometer Disclosure Requirements, as it applies to new car dealers.

Section 580.5(b) states that an odometer disclosure form need not be executed by transferors of new vehicles before their first transfer for purposes other than resale. This means that a distributor of new vehicles is not required to provide a dealer with odometer disclosure statements for vehicles he transfers to him. A new vehicle dealer, however, must complete disclosure statements for all vehicles he transfers to persons who are taking possession for purposes other than reselling the vehicles. In other words, even a new vehicle which has not been previously sold to a consumer must have its odometer mileage certified in compliance with the odometer disclosure requirements when it is transferred.