Interpretation ID: nht78-3.42

DATE: 11/14/78

FROM: AUTHOR UNAVAILABLE; John Womack; NHTSA

TO: McClintock Donovan Carson & Roach

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your letter of September 1, 1978, requesting information on the Federal odometer disclosure requirements. You specifically asked what a lessor's responsibility is with regard to the certifications on the disclosure statement. The lessor, as transferor of a vehicle, is required to certify, to the best of his knowledge, as to the accuracy of the vehicle's odometer. A lessor should assume that an odometer is accurate unless he has reason to believe otherwise. Any reasonable belief that the odometer is wrong should be reflected on the disclosure statement by checking, in the first set of certifications, either box 2 or 3, as appropriate. In situations where the lessor has no knowledge as to the accuracy of the odometer reading, he should not state that the mileage is in error because to the best of his knowledge it is correct.

With regard to the second set of certifications, the lessor should check box 1 unless he altered or knows that the lessee or some other person altered the odometer. Since your client is concerned about the possibility that the lessee may alter the odometer, he may find it advisable to protect himself by requiring the lessee to indemnify him in the event of liability under the Motor Vehicle Information and Cost Savings Act. He may also add a statement on the disclosure form that the vehicle was subject to a lease or was otherwise outside of his control.