Sec. Odometer Fraud  

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  • A. A dealer may not transfer a vehicle which contains an odometer reading which does not reflect the actual mileage of the vehicle unless the dealer truthfully informs the transferee in writing:

    (1) That the odometer reading is not the actual mileage of the vehicle and should not be relied upon;

    (2) That the odometer reading reflects the amount of mileage in excess of the designed mechanical odometer limit of 99,999 miles/kilometers of the vehicle;

    (3) That the odometer was repaired or replaced while in the dealer’s possession;

    (4) That the repaired or replacement odometer was incapable of registering the same mileage as the odometer before repair or replacement;

    (5) That the odometer was reset to zero; or

    (6) Of the last known accurate odometer reading.

    B. A dealer shall inform the transferee in writing if the dealer knows that the odometer in the vehicle has been altered, set back, disconnected, repaired, or replaced.

    C. If the information concerning the odometer for a motor vehicle sold by a dealer is in error under §§A and B of this regulation, the dealer may not be subject to administrative disciplinary action if the dealer did not know, or could not have discovered with reasonable diligence, that the odometer reading or the information provided was incorrect.

    D. In determining the degree of administrative disciplinary action for violating §A or B, the Administration shall consider whether the dealer accepts return of the vehicle from the transferee and refunds to the transferee the full purchase price including all excise tax, license fees, registration fees, and any similar governmental charges and any costs incurred by the transferee for repairs resulting from the excess mileage, less:

    (1) An allowance per mile, as determined by the Internal Revenue Service, for the consumer’s use of the vehicle but not to exceed 15 percent of the purchase price; and

    (2) A reasonable allowance for damages not attributable to normal wear.

    E. When transferring a motor vehicle, a dealer shall comply with Federal Odometer Requirements, 49 CFR Part 580, as amended.