The U.S. National Highway Traffic Safety Administration (NHTSA) published a Final Rule regarding electronic odometer disclosures this week, giving states a modern method of checking odometer fraud and accessing readings.
“This Final Rule was written after carefully considering comments received from the public, including state motor vehicle departments,” James Owens, NHTSA Acting Administrator, said. “As more records are kept digitally, this rule will allow electronic filing of odometer information. Electronic records are more efficient than paper documentation and are harder to forge, helping to prevent fraud.”
This type of fraud is a federal crime, and because of this, the NHTSA has long required sellers to disclose vehicle odometer readings at the time of sale. Until now, however, most vehicle transfers needed to have odometer disclosures made in paper format with handwritten names and wet ink signatures. The new rule does away with that requirement, allowing states to use electronic disclosure systems instead.
The added benefit of this is that state Departments of Motor Vehicles will now be able to increasingly move toward paperless transactions — something the NHTSA says will ultimately save time and money for all involved, along with increased security overall. Allowing for the large number of older vehicles on the road, the Final Rule will require odometer disclosures until vehicles are 20 years old, beginning with the 2010 model year.