According to the National Highway Traffic Safety Administration, over 450,000 vehicles are sold every year with false odometer readings. The NHTSA says this rampant fraud costs car buyers over $1 billion dollars annually. If you just learned that you are one of these unlucky car buyers, here is everything you need to know.

How does someone roll back an odometer?

Scammers use digital equipment that plugs right into a vehicle’s internal computer system to alter the mileage. Indeed, a quick search for “odometer rollback tool” returns a bunch of “mileage correction” devices:

Why do scammers tamper with odometers?

Easy. Rolling back the odometer allows a heavily-worn car to be sold for a newer-car price. For example, a 2013 Toyota Camry might sell for about $10,000 with 100,000 miles on it. With 200,000 miles on it, though, it sells for only $7,300. An unscrupulous car dealer might see that $2,700 as easy money.

i think my car’s odometer was rolled back. How do I know for sure?

Here are a few tips for finding a rolled-back odometer, either before or after the sale.

• Get a vehicle history report from Carfax. These reports have alerts if there’s an odometer discrepancy in the vehicle’s history.

• Check the vehicle for past maintenance records. Oil change and other maintenance records always show the mileage at the time the vehicle was in the shop. Be sure to look in the glovebox and under the seats for left-behind records. You should also check the windshield and door frame for past maintenance stickers.

• Request a title history from the Department of Motor vehicles. Depending on how far the title history goes back, it may reveal odometer discrepancies.

• Inspect the wear and tear on the vehicle. Take the car to mechanic to see if they can find evidence that the car is more “used” than it appears.

WHY SHOULD I CARE IF MY vehicle’S ODOMETER was altered?

Two reasons.

First, you overpaid for the vehicle. Probably by a lot.

Second, you’ll never be able to trade the vehicle in. One of the first things a dealer does when evaluating a trade-in is pull a CarFax report. If the report shows an odometer discrepancy, the dealer is sure to pass on your trade.

Similarly, if you try to sell the vehicle to a private party, you’ll have to disclose the odometer discrepancy. No car buyer in his right mind is going to buy a vehicle with a rolled back odometer.

tampering with an odometer has to be illegal, right?

Definitely. Both federal and Minnesota law prohibit odometer tampering. The law also prohibits sellers from knowingly making a false odometer disclosure even if they weren’t the one who rolled back the odometer.

If my vehicle’s odometer was rolled back, what are my legal rights?

If you’ve been victimized by odometer fraud, the law allows you to sue the perpetrator. If you win the case, the court must award you $10,000 or three times your actual damages, whichever is greater. Further, the defendant has to pay for your attorney fees and court costs.

In addition to these civil penalties, the law provides for criminal penalties for odometer fraud.

Just learned your vehicle’s odometer was rolled back?
Get a free consult with auto fraud attorney Todd Murray.

Since 2009, Todd has been helping Minnesotans combat fraudulent auto sales by used car dealers. His work has returned hundreds of thousands of dollars to his clients’ pockets and has improved the legal protections for used car buyers throughout the state. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.