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Carfax: Odometer Fraud Hits Nearly 200,000 Cars Annually


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CENTREVILLE, VA--Dec. 9, 2013: New research from Carfax is the first substantial evidence in more than a decade that odometer fraud is a major problem for consumers. The data indicates more than 190,000 cars have their odometers rolled back every year, potentially costing victims in excess of $760 million in lost value and unexpected repairs. While an estimated one million rollbacks are lurking in every state, consumers in California, Nevada, Massachusetts, New York and Texas run the highest risk of buying one.

"Odometer fraud is a calamity for car buyers," said Larry Gamache, communications director at Carfax. "There are serious problems that can arise from a rollback. Older, deteriorating parts lead to unexpected repairs while unperformed maintenance for the true mileage may compromise the safety and performance of these cars. Not to mention, each victim loses thousands of dollars because they pay much more than these cars are really worth. This new data is a clear warning that consumers everywhere need to be on the lookout for odometer rollbacks and protect themselves when buying used cars."

Carfax finds that the majority of rollbacks have at least 50,000 miles taken off their odometer. In addition, 14-15 year-old cars are most susceptible to a rollback.

Professional con men likely are taking advantage of longer vehicle lifespans and readily-available devices to dupe unsuspecting consumers. An odometer correction tool is easily found online and can be used to illegally alter digital odometers. Many rolled-back cars are sold through online classifieds and private sales, but some criminals attempt to trade them in at dealerships as well.

Consumers worried about odometer fraud can check for free at CarFax. Carfax also offers these tips to help avoid buying a rolled-back car:

Check that the car's wear and tear is consistent with the odometer reading. Ask the seller for service records and note the mileage on them. Buy from a recommended dealership or trusted seller. Be wary of 'too good to be true' deals or overly-aggressive sellers who want a quick sale. Get a Carfax Vehicle History Report from the seller or at CarFax. Have a trusted mechanic thoroughly inspect the vehicle and check its computer.