Interpretation ID: nht95-4.28

TYPE: INTERPRETATION-NHTSA

DATE: September 19, 1995

FROM: John Womack -- Acting Chief Counsel, NHTSA

TO: David Seagren -- Dealer Principal, Pony Express Dodge, Inc.

TITLE: NONE

ATTACHMT: 12/8/95 letter from Samuel J. Dubbin to Peter F. Marthy (A43; Part 580)

TEXT: This is in response to your letter sent to this office by telefax on September 12, 1995. In your letter, you ask whether it is permissible to alter an odometer that registers kilometers rather than miles by multiplying the kilometer reading by .62, when there had been a previous attempt to convert the reading to miles. Your letter states that the earlier attempt resulted in the odometer being set back to the equivalent in miles but the odometer continued to register distance in kilometers.

As you are aware from a Federal Register notice faxed to you by Eileen Leahy of this office, the National Highway Traffic Safety Administration (NHTSA), the Federal agency with responsibility for the odometer disclosure regulations promulgated pursuant t o the Truth in Mileage Act of 1986 (TIMA) has stated that it is permissible to reset the odometer from kilometers to miles by multiplying the number of kilometers shown on the odometer by .62, and that it is also permissible to certify that number of mil es as "actual" when completing the odometer disclosure statement when ownership of the vehicle is transferred.

The rationale for this policy is that "mileage" is defined in the Federal regulations as distance traveled, and it is permissible to express the number either in miles or metrically if it is known that it reflects the actual distance traveled and that th e disclosure of the odometer reading specifies which system of measure (miles or kilometers) is being used. Because the conversion from kilometers to miles can be accurately made simply by multiplying the kilometers on the odometer by 0.62, the agency b elieves that there is little likelihood that permitting odometer readings that have been converted from kilometers to miles to be recorded as "actual mileage" will result in an inaccurate or misleading representation of the distance a vehicle has travele d.

The situation you describe is more complicated because a previous owner of the vehicle in question had already set back the odometer to the mileage equivalent after purchasing it with an odometer reading in kilometers, but according to your letter did no t execute properly the procedure necessary to make the odometer register miles rather than kilometers while being driven. The result of this error has been the addition of kilometers to a figure that reflected miles rather than kilometers traveled.

In order to permit recording of a conversion of the present odometer reading from kilometers to mileage as "actual mileage" in this circumstances, two criteria must be satisfied. First, it must be apparent that the calculation at the time of the first c onversion was done properly so that it reflects the actual number of miles the vehicle had traveled at that time. From the documents you submitted reflecting the events that occurred prior to your purchase of the vehicle, it appears that the previous ow ner properly converted kilometers to miles. Accordingly, the first criterion is satisfied.

It is then necessary to establish that the reading now shown on the odometer accurately represents the distance traveled by the vehicle since the first attempted conversion. There is no indication in any of the documentation you furnished that there hav e been any intervening alterations to the odometer or changes in the way it has recorded distance that would alter the accuracy of its current reading. In addition, you state that since your company has owned the vehicle, the odometer has consistently o perated in a way that shows that it was registering kilometers rather than miles. Based on these factors, it appears that it will be possible for you to ascertain with accuracy the distance the vehicle has traveled since the first conversion from kilome ters to miles was made.

The proper way to do this conversion is to subtract the number shown as the reading in miles as a result of the calculation made at the time conversion was first attempted, from the number showing on the odometer when you transfer ownership of the vehicl e. The result will be the total kilometers the vehicle has traveled since that time. To arrive at the number of miles traveled since the attempted conversion, the result of that subtraction is to be multiplied by 0.62 as described above. In turn, the number resulting from that multiplication is added to the number of miles at the time of the first conversion and the sum is the total number of miles traveled by the vehicle at the time of transfer. You may then properly certify on the odometer disclosu re statement when you transfer ownership of the vehicle that that number is its actual mileage.

Because the Kansas Motor Vehicle Department asked that you contact this office for our interpretation of the proper way to handle the sale of this vehicle under the Federal odometer disclosure regulations, it would be advisable to provide that office wit h a copy of this letter either before or at the time of your application for a new title.

I hope this information is helpful. If you have any further questions about this matter, please contact Eileen Leahy, an attorney in this office, at the address shown above or at (202)366-5263.

(9/12/95 telefax from David Seagren to NHTSA is not available.)