Buyers Beware: Odometer Fraud & How to Detect It Before You Purchase an Used Car

A recent study revealed that there are over 190,000 cars in the U.S. with odometers that were rolled back.  As more used car dealers find themselves in court regarding odometer fraud, analysts believe that there are many Americans were victims – dishing out thousands in unnecessary dollars for these cars.

According to the study, New York, California, Texas, and Georgia are the top four states most negligent of odometer fraud. In Georgia alone, there are 40,000 cars that has been affected. The Dept of Justice says that the average person lose at least $4,000 in car repairs and/or over-payment for the car.

One Georgia dealer was recently investigated for fraud. A private appraiser revealed that the dealer sold a 2001 Toyota Avalon – with 163,000 miles listed on the odometer –  for $4,900.  After pulling a Carfax report, documents showed that the Avalon sold a year before carrying 237,000 miles. So, the car was actually worth approximately $1,600.  (Source: AJC)

Mark Plotnick in court for odometer fraud. (Florida)

Marc Plotnick, former owner of Plotty’s Discount Motors in Stuart, Florida was facing a potential sentence of 140 years of jail time on odometer fraud and other felony charges. What Plotnick got from the court was a slap on the wrist by comparison. The former used car dealer received an 8 month jail sentence, a year of house arrest and three years of probation. Prosecutors in Plotnick’s case had made a sentence recommendation of 14 months in prison as part of his plea agreement, but Judge Steve Levin thought otherwise. As a special condition to Plotnick’s sentence, the Court ordered that Plotnick was “not permitted to participate in any car business of any type – no sales to any customer” according the docket entries reported on the Martin County’s Clerk’s office. (Source: MannersLaw)

In the state of Georgia, odometer fraud carries a misdemeanor charge.  Although it is recognized as a state and federal crime, the penalties in most states have been less desirable for the victims. Even though Plotnick served 8 months in jail, he eventually slipped through a loophole and started back selling cars. So, if there aren’t any strict regulations at these dealerships, it is imperative that consumers protect themselves.

Before purchasing an used car, first conduct a Vehicle Identity Number (VIN) search and obtain a CarFax Vehicle History Report.  The CarFax report allows the customer to find out any prior repairs or previous rollbacks. Obtaining a report prior to purchasing a car will allow you to save up to 80% in future repair costs.

If you suspect that you’ve been a victim or odometer fraud, ask for assistance with your State Attorney’s General office, Dept of Motor Vehicle (DMV), Dept of Transportation, and any agency that handle vehicle fraud claims.