30+ Years of Dealership & Manufacturer Expertise - Approved Academy
30+ Years of Expert Retail Dealer Operations and Manufacturer Experience - Approved Course
7.3 Odometers
Odometer law is one of the most heavily regulated areas in vehicle sales, and the penalties for violations are among the most severe. The federal Odometer Act — found at 49 U.S. Code Sections 32701 through 32711 — and California Vehicle Code Sections 28050 and 28051 establish the framework for odometer disclosure, recording, and anti-tampering provisions.
The purpose of odometer regulation is straightforward: buyers have the right to know how many miles a vehicle has been driven. Mileage is one of the most significant factors in a vehicle’s value and remaining useful life. A car with 30,000 miles is worth significantly more than the same car with 130,000 miles. Odometer fraud — tampering with the odometer to misrepresent mileage — is one of the most common forms of vehicle fraud in the United States, and it costs consumers billions of dollars annually.
The federal law requires that at every transfer of vehicle ownership, the transferor must provide the transferee with a written odometer disclosure statement. This statement must include the odometer reading at the time of transfer and a certification that the reading is accurate — or, if the transferor knows the reading is inaccurate, a disclosure that the actual mileage is unknown. There is an exemption from the disclosure requirement for vehicles that are 20 or more model years old. For those vehicles, an odometer disclosure is not required — though if the mileage is known, many dealers still choose to disclose it as a matter of good business practice.
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⚠ Key Compliance Point Federal Odometer Act (49 USC §§32701–32711): • Written odometer disclosure required at every transfer of ownership • Exemption for vehicles 20+ model years old • Disclosure must state the odometer reading and certify its accuracy • If actual mileage is unknown (e.g., odometer has been replaced or has exceeded its mechanical limits), the disclosure must state that |