Beginning January 1, new rules for odometer disclosures will go into effect, replacing a regulation implemented on March 1, 1973 that required each transferor of a motor vehicle to provide a statement attesting to the accuracy of the car's odometer.
The final rule came about as a result of a petition from the National Automobile Dealers Association (NADA) and experience with the old rule which had shown some areas for improvement. All businessmen, as well as all consumers, who sell automobiles would be required to fill out the new odometer disclosure statements. The National Highway Traffic Safety Administration (NHTSA) says the new rule is not designed to require disclosure statements from those who are most often found to tamper with odometers, but rather the rule is to inform potential buyers of the car's actual mileage which will help gauge the condition and value of the vehicle.
The final rule differs from the proposed changes in several areas. It was proposed that the vehicle's last license plate number, state and year appear on the disclosure form. That proposal was dropped when a number of parties commenting on the proposal indicated that such information is not needed to identify a vehicle or trace its history.
Another difference is the addition, at the request of the NADA, of several items to the disclosure form that would certify that the odometer was either unaltered or altered for repair or replacement purposes only. The second part of this change, the certification that the odometer was altered, has been divided into two sections. The first section certifies that the odometer was changed for repair purposes, but was then reset to the identical mileage reading before repair. The second part indicates that the odometer was set back to zero upon completion of repairs and lists the mileage on the odometer prior to repair.
Another requirement accepted by the NHTSA on behalf of those commenting on the rule change is the inclusion of the transferee's name and address on the disclosure statement along with that person's signature. The provision will be useful in tracing the vehicle's history. The disclosure form also provides for odometer readings that are expressed in kilometers.
Although the disclosure is not required on the title under the rule, the NHTSA has indicated that it will accept state titles that include odometer disclosures in lieu of the federally required forms. However, if a proposed state title form differs from the federal form, the state must submit it to the NHTSA before final approval. Given the size of present state titles, the NHTSA would permit shortening of the odometer disclosure form where necessary. A shorter disclosure form may not be as clear as the federal form, but the agency feels the sacrifice is small when compared to the benefits of combining odometer disclosures and automobile titles. States wishing to include odometer disclosures on titles of ownership must meet the basic provisions of the Federal requirements, but the NHTSA will allow the following exceptions:
(1) "The citation to the Federal law may be deleted in favor of a reference to state law. The reference provisions could then state that 'Federal and State regulations require you to state the odometer mileage upon transfer of ownership. (Citation to state law instead of federal law).' "
(2) "The initial statement of the odometer reading and the following alternate certifications should be included on the title. States may, however, condense that information as long as none of the certifications are lost. An example of such condensation could be "I certify to the best of my knowledge that the odometer reading is and reflects actual mileage of the vehicle described herein or (check if applicable)
§ The amount of mileage stated is in excess of 99,999 miles, or The odometer reading is not the actual mileage."
(3) "The transferee's signature must still appear on the title but it need not expressly indicate acknowledgment of receipt of the disclosures."
(4) "The certification that the odometer was either not altered or altered for repair or replacement purposes may be deleted."
The NHTSA requires that any change along these lines must first be cleared by the agency and the exceptions listed above are a guide only.
Other requests considered by the NHTSA but not implemented in the rule included requiring odometer readings to appear on registration forms and requiring manufacturers to supply six-digit odometers.
The new rule is as follows:
§ 580.4 Disclosure of odometer information.
(a) Before executing any transfer of ownership document, each transferor of a motor vehicle shall furnish to the transferee a written statement signed by the transferor, containing the following information:
(1) The odometer reading at the time of transfer;
(2) The date of transfer;
(3) The transferor's name and current address;
(4) The transferee's name and current address;
(5) The identity of the vehicle, including its make, model, year, and body type and its vehicle identification number.
(b) In addition to the information provided under paragraph (a) of this section, the statement shall refer to the Motor Vehicle Information and Cost Saving Act and shall state that incorrect information may result in civil liability and civil or criminal penalties.
(c) In addition to the information provided under paragraphs (a) and (b) of this section,
(1) The transferor shall certify that to the best of his knowledge the odometer reading reflects the actual miles or kilometers the vehicle has been driven: or
(2) If the transferor knows that the odometer reading reflects the amount of mileage in excess of the designed mechanical odometer limit of 99,999 miles/kilometers, he shall include a statement to that effect; or
(3) If the transferor knows that the odometer reading differs from the number of miles/kilometers the vehicle has actually traveled and that the difference is greater than that caused by odometer calibration error, he shall include a statement that the odometer reading is not the actual mileage, and should not be relied upon.
(d) In addition to the information provided under paragraphs (a), (b) and (c) of this section, the transferor shall certify that:
(1) The odometer was not altered, set back or disconnected while in the transferor's possession, and he has no knowledge of anyone else doing so;
(2) The odometer was altered for repair or replacement purposes while in the transferor's possession and the mileage registered on the repaired or replacement odometer was identical to that before such service; or
(3) The odometer was altered for repair or replacement purposes, the odometer was incapable of registering the same mileage, it was reset to zero and the mileage on the odometer before repair was miles/kilometers.
(e) The transferee shall acknowledge receipt of the disclosure statement by signing it.
(f) (1) If the laws or regulations of the state in which the transfer occurs require the odometer disclosure to be made on the certificate of title, the transferor may make the disclosure required by this section by executing the state certificate of title. In order to utilize the certificate of title, as a substitute for the Federal odometer disclosure statement, it must contain essentially the same information required by paragraphs (a), (b), (c) and (e) of this section. If the information contained on the State certificate of title varies in any way from that required for the Federal form, the State must obtain approval from the National Highway Traffic Safety Administration before its title can be used as a substitute for the Federal form.
(2) The NHTSA shall respond to the State's request within 30 days of receipt of such request.
(3) If a document, other than the certificate of title, provided under the laws or regulations of the State in which the transfer occurs contains all of the statements required by this section, the transferor may make the disclosure required by this section, the transferor may make the disclosure required by this section either by executing the State document or by executing the disclosure form specified in §580.6.
(g) If there is no State document as described in paragraph (f) of this section, the transferor shall make the disclosure required by this section by executing the disclosure form specified in §580.6.
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