CARFAX Warns Car Shoppers: Watch Out For Odometer Fraud

Rhea-AI Summary

CARFAX highlights a troubling trend in odometer fraud, revealing that over 1.8 million vehicles currently on the road have had their odometers rolled back, representing a 13% annual increase from 2019. The National Highway Traffic Safety Administration indicates that more than 450,000 vehicles are sold with false odometer readings each year, costing American consumers over $1 billion in lost value annually. States like Texas report a staggering 31% rise in cases. CARFAX offers a free Odometer Fraud Check tool to assist buyers.

Positive

• CARFAX's Odometer Fraud Check tool helps protect consumers from odometer fraud.
• The PR raises awareness about the issue, potentially increasing user engagement with CARFAX services.

Negative

• Odometer fraud costs American car buyers over $1 billion annually, indicating a significant market issue.
• A 31% increase in cases of rolled-back odometers in Texas suggests a growing problem that could deter potential buyers.

CENTREVILLE, Va., Dec. 15, 2020 /PRNewswire/ -- There is a big misconception that odometer fraud disappeared with digital odometers, but that's not so: CARFAX data suggests that more than 1.8 million vehicles on the road today have had their odometer rolled back, a 13% annual increase over 2019. The National Highway Traffic Safety Administration estimates that more than 450,000 vehicles are sold each year with false odometer readings, and that costs American car buyers more than $1 billion in value annually. Not only that, odometer rollback can also lead to unexpected repair costs for buyers whose cars have more wear and tear than they expected.  

That's what happened to Renee Chance, a driver in Oregon state. "I bought a car and then when I got the CARFAX report after, it showed potential odometer fraud. The car shows 80,000 miles on a digital odometer. I have spent $1,000 trying to make the car trustworthy, and it still is not. Now the car needs an $1,800 repair. In addition, I overpaid $1,000 because of the odometer reading. I am a pretty savvy car buyer and have never had this happen before."

Several heavily populated states saw double-digit increases in cases of possible rolled-back odometers, with Texas leading with a 31% rise over 2019.

To help protect consumers, CARFAX offers a free Odometer Fraud Check tool and tips to protect yourself at www.carfax.com/odo.

About CARFAX
CARFAX, part of IHS Markit (NYSE: INFO), helps millions of people every day confidently shop, buy, service and sell used cars with innovative solutions powered by CARFAX vehicle history information. The expert in vehicle history since 1984, CARFAX provides exclusive services like CARFAX Used Car Listings, CARFAX Car Care, CARFAX History-Based Value and the flagship CARFAX® Vehicle History Report™ to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post and Glassdoor.com. Shop, Buy, Service, Sell – Show me the CARFAX™. Based in London, IHS Markit is a world leader in critical information, analytics and solutions.

 

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SOURCE CARFAX

FAQ

How much does odometer fraud cost American car buyers annually?

Odometer fraud costs American car buyers over $1 billion in lost value each year.

What percentage increase has there been in odometer rollback cases in Texas?

Texas has seen a 31% increase in odometer rollback cases compared to 2019.

What tool does CARFAX offer to combat odometer fraud?

CARFAX offers a free Odometer Fraud Check tool for consumers.

What is the estimated number of vehicles sold with false odometer readings each year?

More than 450,000 vehicles are sold each year with false odometer readings.