The Washington State Department of Motor Vehicles has declared a war on the practice of setting odometers back and is attempting to get several other motor vehicle departments of Western states in on the fight to eliminate the problem.
"The practice of setting back odometers of late model cars to show lower than actual miles is a fraud that cannot be tolerated," said R.Y. Wood-house, director of the Washington Motor Vehicle Department.
She pointed out that Washington has been a leader in stamping out such practices by requiring that a vehicle's mileage be entered on the title when the car is sold or the title transferred. In addition, dealers are required to enter the odometer reading on the title application for customers as part of the sale of a car. However, these stringent controls haven't stemmed the tide of cars with false odometer readings from entering the state and Woodhouse indicated that Washington is becoming a "dumping ground" for such vehicles.
"We estimate that upwards of 60-percent of the two million late model vehicles coming off lease with high mileage will have their odometers set back," she reported, "and the current fraudulent inflation of car values based on odometer setback is $900 for 1974-76 models." The loss exceeds $1-billion annually, nearly equaling the annual loss due to auto theft.
"However, unlike auto theft, where insurance can assist the victim, there is no financial help for the victim of odometer rollback," Woodhouse said. "Often those individuals least able to afford the loss are saddled with the vehicles that need added repair and new safety equipment because they were sold as low mileage cars."
Woodhouse said there are many cases where reputable dealers lose money by getting cars with false odometer readings from out of state wholesalers. One case involved a reputable dealer who purchased a 75 Chevrolet Caprice wholesale showing 31,000 miles on the odometer. Investigation revealed the car came off lease in California with 96,272 miles and was purchased by a wholesaler for $2,475. The Washington dealer paid $3,450 because of the low mileage.
Another incident involved a 1974 Pinto station wagon which came off lease with about 50,000 miles and the leasing company sold it for $1,500 to a wholesaler in Colorado. The car's odometer was set back to 29,746 miles and the vehicle was sold wholesale to a Washington dealer for $2,170. The car wholesaled again for $2,525 and was finally sold retail for $3,375. Its original new cost was $3,506.
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The director said her concern will be shown in enlisting cooperation from other states and the federal authorities in attacking the problem. "We have the federal law, but it needs to be implemented," she said. "Until the federal laws are implemented, efforts by states individually cannot stem the extensive interstate traffic in rollbacks."
Woodhouse noted that local prosecutors in King and Franklin Counties have been particularly effective in working with the state staff. She cited two Tacoma men who were sentenced to upward of 15 years in state prison on charges of grand larceny. The two men were convicted for buying nearly 100 cars in California, rolling back the odometers in Tacoma, and selling the cars to dealers throughout the state in 1973-74.
That conviction was a high point in the four-year program by state authorities to eliminate odometer rollback. Officials estimate that the program has saved the public an estimated $4.5-million. In the last year alone, 90 licensees had their licenses suspended, revoked or denied and some were assessed fines for violation of the law. Approximately 2,445 consumer complaints were investigated and cash adjustments of $290,000 were made to the purchasers of the vehicles with fraudulent readings.
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