Dealer Alert 0911

DEALER ALERT
Odometer fraud is becoming a major concern once again and dealers need to make themselves very aware of what is taking place in our industry. Low mileage vehicles are very difficult to obtain these days and with dealers paying higher than normal prices for low mileage units we need to be ever vigilant and take every precaution to make sure that low mileage vehicles are legitimate.
All cars and trucks sold in the US after 1-1-96 were required to have an OBD connector – On-Board Diagnostic’s System. This device allows access to the vehicle computer codes and programming. Unfortunately there are some among us who have created a way to enter the vehicle computer and tamper with the digital/ electronic odometer for fraudulent benefit and financial gain by intentionally increasing the vehicle’s value by reducing the vehicle’s mileage.
The National Auto Auction Association has issued several alerts which warn about the use of odometer mileage programming devices also called odometer reset devices or odometer correction tools. All manufacturers have authorized repair centers in the event of an odo malfunction and these entities should not be confused with those
unscrupulous persons who are tampering with odometers for illegal purposes.

The following websites will provide helpful information:
http://www.obdii.com/background.html
www.naaa.com – National Auto Auction Association – Industry News
www.dot.gov/ - US Department of Transportation – Odometer Fraud
www.nhtsa.gov/ - National Hwy. Traffic Safety Admin.-Odometer Fraud
www.notfea.org – National Odo and Title Fraud Enforcement Assoc.
How can a dealer protect themselves (1) make sure a AutoCheck, NICB
NMVTIS and/or Carfax report is looked at PRIOR to the purchase of a vehicle (2) look at the wear and tear of the vehicle (3) if the vehicle is a one owner vehicle (which the crook really likes) try to obtain service
records on it (4) know who you are buying the vehicle from. If you end up with a vehicle that has been the subject of odo tampering and you have sold the vehicle – this can be a real problem for you, your reputation, your customer and our regulators.


Some of these devices are handheld while others might require total removal of the odometer in order to tamper with them. A majority of the handheld devices are manufactured in China and other foreign countries, advertised on the internet and are very inexpensive to purchase.

Over the years most dealers have become familiar with odometer tampering. Example, when trucks started to gain popularity we found some scoundrels setting back the odometers on trucks older than 10 years and outside the written odometer disclosure requirement then declaring these as exempt vehicles or TMU vehicles and the authorities caught up with these tactics very rapidly. Odometer readings should be described as actual mileage, not actual or exceeds the mechanical limit. The word exempt does not mean that one can do anything under the sun to the odometer.
A YouTube video will show you how the mileage correction software tool actually works and it is evident that it only takes minutes to make
corrections:
http://www.youtube.com/watch?v=fCWyTsXqnGc
THIS IS A VERY SERIOUS PROBLEM EVERYONE IN OUR INDUSTRY MUST BE AWARE OF. REPORT TO THE AUTHORITIES ANYTHING THAT YOU FEEL IS SUSPICIOUS. YOUR INFORMATION WILL BE KEPT CONFIDENTIAL. 1-866-908-4636 or 515-281-5926
DEALER QUESTIONS


Compliments of the Iowa IADA