Action 9 Investigates: Odometer fraud on the rise

CHARLOTTE, N.C. — Used cars have become a hot target for scammers.

The National Highway Traffic Safety Administration reports that 450,000 cars are sold nationwide each year with false odometer readings, which costs consumers more than $1 billion a year.

The odometer reading can impact many things for a car owner, such as the overall value of the vehicle, the maintenance schedule, insurance premiums and the interest on a car loan.

Carfax estimates that more than 60,000 vehicles in the Carolinas have rolled-back odometers.

Michael Domke is with the National Odometer and Title Fraud Enforcement Association, an agency that tracks odometer fraud across the country.

He said if a car buyer doesn’t know what to look for, they can be taken advantage of pretty easily.

“I think there’s a misconception that with computers and digital odometers, that they’re more protected,” Domke said. “And I would actually say it’s probably easier now to adjust those and manipulate them than it was when we had the rolling mechanical odometers.”

Automotive expert Josh Ingle showed Action 9 Investigator Jason Stoogenke how easy it is to roll back an odometer. He rolled back the reading on an odometer by 180,000 miles in seconds.

“That’ll change the value on this truck by about $8,500 dollars,” he said.

Domke said a jump in online car sales makes catching scammers more difficult.

“While that brings certain benefits, it also brings certain risks because it opens a network of vulnerability to consumers when they buy a vehicle and don’t know who they’re buying from,” he said.

He suggests avoiding Craigslist and other online marketplaces.

“Those are the areas where it’s very easy to do because there’s not as many records, there’s not as many forms that need to be filled out,” he said.

He also suggests having someone inspect the car before purchasing it and getting a vehicle history report.

Carfax and the National Motor Vehicle Title Information System are two reputable sites consumers can use.

“If you are going to spend thousands of dollars on a vehicle, take time to spend an extra $50 and get a vehicle history report and know exactly what you’re buying. And then have the confidence that what you see is what you get.”

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