According to a new study, almost 2 million cars on the road today may have fake odometer readings. The number is up 7% from last year.
The annual study comes from the vehicle history report service Carfax.
Texas, Arizona, and Florida See Biggest Fraud Increases
The risk isn’t the same in every state, Carfax says. Odometer tampering rose 15% in Texas and 12% in Arizona and Florida. California, which has more cars than any other state, saw a 2% increase over the past year.
Related — Vehicle History Report: Everything You Need to Know
With used car prices declining, the temptation to try to increase the value of your used car may be growing. And with most of today’s cars using a digital odometer, Carfax says, “it’s never been easier — or cheaper — to remove thousands of miles from a car’s history.”
Odometer Fraud Can Cost Buyers Thousands
Buying a used car with a false odometer reading can cost you. Carfax estimates that “consumers lose an average of $4,000 in value” when the actual odometer reading is known. But there are other expenses, from higher maintenance costs on parts with more wear and tear than predicted to higher insurance rates once the fraud is uncovered.
Related — How to Buy a Used Car in 10 Steps
Always Have a Used Car Inspected Before You Buy
How do you uncover odometer fraud? Carfax, of course, recommends that you get a vehicle history report. That’s good advice, but we’d also note that many mechanics can spot it. Always have a used vehicle inspected before you buy it. A trained mechanic will notice wear and tear that doesn’t match the odometer reading.
If the seller balks at you asking to take the car for an inspection, take it as a warning sign and walk away.
If you suspect odometer fraud, don’t buy the car. Each state has its own separate enforcement agency. The National Highway Traffic Safety Administration (NHTSA) lists all of them on its website.
