Interpretation ID: nht78-4.4

DATE: 02/02/78

FROM: AUTHOR UNAVAILABLE; John Womack; NHTSA

TO: Eagle Equipment Company

TITLE: FMVSR INTERPRETATION

TEXT: Our Regional Office in San Francisco has forwarded to us for reply your request for an interpretation of 49 CFR Part 580, Odometer Disclosure Requirements.

The question you raised is who executes the odometer statement when the vehicles are owned by and registered in your name, but turned over to a leasing company who in turn sells the vehicles. Section 408 of the Motor Vehicle Information and Cost Savings Act requires each transferor of a motor vehicle to issue an odometer disclosure statement to each transferee. The transferor is defined in 49 CFR Section 580.3 as "any person who transfers his ownership in a motor vehicle . . . " Therefore, you as the owner of the vehicle are required to execute the statement. However, since you never see the vehicles, but rely on the leasing company to sell them for you, you may also rely on the leasing company to act as your agent and execute the odometer statements for you. Since you are the legal owner of the vehicles, it is your responsibility to execute the statements. If you are concerned about the possiblity that thee leasing company may alter the odometer or make an improper disclosure, you may find it advisable to protect yourself by requiring the leasing company to indemnify you in the event of liability under the Act.