Interpretation ID: nht76-5.38

DATE: 05/20/76

FROM: AUTHOR UNAVAILABLE; John Womack; NHTSA

TO: Earl M. Hoosline

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your letter of April 11, 1976, requesting information concerning your daughter's purchase of a 1972 Plymouth whose odometer was allegedly rolled back.

The Motor Vehicle Information and Cost Savings Act (Pub. L. 92-513) prohibits alteration of the mileage indicated on an odometer and requires that a written disclosure of a vehicle's mileage be provided by the seller to the purchaser at the time the ownership of a vehicle is transferred. If the correct mileage is unknown, however, the Act requires a statement to that effect to be furnished in written form to the buyer. There is no requirement that these disclosure statements be retained by either the transferor or the transferee.

Violation of any of the above requirements may subject the violator to civil liability where his actions were intended to defraud the purchaser. The Act makes available to the buyer a remedy in the amount of $ 1,500 or treble damages, whichever is greater. To obtain this remedy, section 409 of the Act provides that a private civil action be instituted in State or Federal court.

If a vehicle has traveled over 100,000 miles and this is not reflected on the odometer, the odometer disclosure statement should indicate that the mileage registered on the odometer does not reflect the true number of miles the vehicle has driven. If the suggested Federal form is used in making the disclosure, the following statement should be checked:

"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."

However, since the actual mileage would be known in the case where the odometer had simply passed the 100,000 mark, the seller should state what the actual mileage is.

For your information, I am forwarding copies of the relevant portions of the Act and the disclosure requirements, in addition to the consumer information pamphlet on odometers.

SINCERELY,

DEAR SIRS:

Legal April, 11, 1976

Would like a little information on odometer tampering law: Daughter bought a 197 plymouth (SECOND HAND) actual miles on odometer card 45,800 miles. Drove 2000 miles and had to have over hauled mechanic stated the car had much over the named mileage how far back does odometer check have to be kept -- my understand, was owned & sold by at least two dealers before us. If the car has gone over the 100, thousand mark does that all have to be shown on paper, please let me know by returned mail if any information would be helpful to me & others

Thank you

Earl M. Hoosline