Odometer Fraud and the Odometer Disclosure

Rolling back or replacing an odometer to hide a vehicle's true mileage is a federal offense, and every transfer of a vehicle must come with a written mileage statement the buyer can sue over if it is false.

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What it means

Federal law makes it illegal to disconnect, reset or alter a vehicle's odometer with intent to change the mileage it shows, to sell a device for doing so, or to operate a vehicle knowing its odometer is disconnected. Because mileage drives price, the law also requires that when ownership of a motor vehicle is transferred the seller give the buyer a written disclosure of the odometer reading, on the title or a prescribed form, stating whether it is accurate, known to be wrong, or beyond the odometer's mechanical limits. Newer vehicles are exempt from the disclosure only after a fixed age set by regulation, which was extended substantially in 2021.

A buyer harmed by a false disclosure or a tampered odometer has a private right of action in federal or state court and may recover a multiple of their actual loss or a fixed statutory minimum, whichever is greater, plus attorney's fees - which is what makes an individual case worth bringing. The claim requires intent to defraud, but courts have found that intent from a seller's reckless disregard of obvious signs that the mileage was wrong.

Digital odometers did not end the problem; they moved it into software. The practical protections are the title history, a vehicle-history report showing the mileage recorded at each prior sale, inspection and registration, and a comparison of that history with the wear on the vehicle.

Michigan, as of October 2026. Michigan has its own odometer statute in the Vehicle Code, alongside the federal one. MCL 257.233a requires the seller to give the buyer a written odometer disclosure before delivery, makes it a felony to alter, set back or disconnect an odometer, and treats a violation by a licensed dealer as prima facie evidence of a fraudulent act. A person who breaks the disclosure or tampering rules with intent to defraud is liable for three times the buyer's actual damages or a statutory minimum, whichever is greater, plus costs and reasonable attorney fees when the buyer recovers. Some older and heavier vehicles are exempt from the disclosure requirement, so the model year and weight rating are worth checking first.

Where this comes from

When people hire a lawyer for this

If the history report and the title disclosure disagree with each other, or with the car, that is the evidence, and a lawyer can tell you whether the seller's conduct meets the intent standard and whether the dealer or the prior owner is the right defendant. Because fees can be recovered, consumer lawyers take these cases on vehicles that are not expensive.

Worried about the cost? A lawyer can be hired for one part of a case only (limited-scope representation), may be paid from what a claim recovers (contingency fee), or may be free through a pro bono program or legal aid; a court can also waive its own filing fees.

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Related terms

Other entries in the same area of law, each written from the same primary sources.

• CDL DisqualificationThe federally defined list of offenses that take away a commercial driver's license - including offenses committed in a personal car, and a lower alcohol limit than applies to other drivers.
• Contesting a Traffic TicketWhat a moving violation citation actually is, the difference between an infraction and a traffic misdemeanor, and the procedures - hearing, written defense, traffic school - for answering one.
• Driving Record PointsThe system most states use to score moving violations against a driver's record, with a license suspension when the total crosses a threshold - and an interstate compact that makes an out-of-state ticket count at home.
• DUI / DWI (Impaired Driving)Driving while impaired by alcohol or drugs - a charge that almost always runs as two separate cases at once, one criminal and one over the license.
• Event Data Recorder (Vehicle Black Box) EvidenceThe crash data a modern vehicle records about itself in the moments before an impact - what the federal standard requires it to capture, who owns it, and who may retrieve it.
• Field Sobriety TestsThe roadside balance, coordination and eye-movement exercises an officer uses to build probable cause for an impaired-driving arrest - usually voluntary, and never the same thing as the chemical test that follows.
• Hours-of-Service Rules (Commercial Trucking)Federal limits on how long a commercial driver may drive and work, and the electronic records that show whether those limits were kept.
• Ignition Interlock DeviceA breath-testing device wired into a vehicle that stops it starting if the driver has been drinking - required by many states after an impaired-driving conviction as a condition of driving at all.
• Implied Consent and Administrative License SuspensionThe rule in every state that by driving you have agreed to a chemical test for alcohol or drugs after a lawful arrest - and the license suspension that follows a refusal or a failed test, separately from any criminal case.
• Leaving the Scene of an Accident (Hit and Run)The legal duties every state imposes on a driver involved in a crash - to stop, to exchange information and to help anyone hurt - and the separate criminal offense of driving away instead.
• Lemon Law and Warranty RightsRules that entitle a buyer to a refund or replacement when a new vehicle has a defect the manufacturer cannot fix in a reasonable number of attempts.
• Negligent Entrustment (Lending a Vehicle)The claim against a person who lent a car to someone they knew, or should have known, was unfit to drive it - the owner's own negligence, separate from the driver's.
• No-Fault Car InsuranceA system in which your own insurer pays your medical bills after a crash regardless of who caused it - used in a minority of states, and it limits when you can sue.
• Permissive Use (Insurance Follows the Car)Permissive use is the rule, written into most auto policies as the omnibus clause, that the owner's insurance covers anyone driving the car with the owner's permission - which is why insurance usually follows the car - plus the exclusions that defeat it and the owner-liability statutes some states add.
• Policy LimitsThe maximum an insurance policy will pay - and usually the real ceiling on what a claim is worth, whatever the injury.
• Rideshare Accident Insurance (App Periods)Which insurance applies when a rideshare vehicle is in a crash depends on what the driver's app was doing at that moment - the three periods state transportation network company laws define, and the gap that personal policies leave.
• Salvage and Rebuilt TitlesA salvage title is the brand a state puts on a vehicle an insurer has declared a total loss; a rebuilt title means it was later repaired and passed a state inspection. The brand is permanent, and a federal database exists to stop it being washed clean in another state.
• SR-22 and Financial Responsibility FilingsThe certificate an insurer files with the state to prove a high-risk driver is carrying the required liability coverage - what triggers it, why it is not itself insurance, and what happens if the policy behind it lapses.
• Tire Defect Claims (Tread Separation and Blowouts)Injury claims after a tire fails, where the question is whether the tire was defectively made or designed, was too old or was recalled, rather than only how the driver reacted.
• Total Loss and Diminished ValueWhat happens when an insurer decides a damaged vehicle is not worth repairing - and the separate claim for a repaired car that is now worth less.
• Uninsured and Underinsured Motorist CoverageCoverage on your own policy that pays when the driver who hurt you had no insurance, or nowhere near enough - and it is the coverage people most often discover they declined.
• Used Car Buyers Guide (FTC Used Car Rule)The window sticker a dealer must display on every used vehicle offered for sale, stating whether it comes with a dealer warranty or as is - and why the sticker overrides the contract.
• Vehicle Safety RecallA manufacturer's federally supervised obligation to notify owners of a safety defect and fix it free of charge - and the rules on what a dealer may sell with a recall still open.

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