Understanding Odometer Disclosure for Vehicle Dealers
In California, vehicle dealers are mandated to complete precise and legal-compliant odometer disclosures during the ownership transfer of vehicles less than 10 model years old. Proper compliance with these requirements ensures transparency in mileage reporting, thus maintaining trust with customers and authorities.
Why is Odometer Disclosure Important?
The odometer disclosure is a critical step in vehicle sales as it records the vehicle’s mileage at the time of transfer. This helps prevent fraud and assures potential buyers of the vehicle’s actual usage. Failure to accurately report odometer readings can result in severe penalties, including fines or imprisonment.
Key Steps in Odometer Disclosure
- Form Usage: Use the preprinted section on the title or a Vehicle/Vessel Transfer and Reassignment Form (REG 262) if the title lacks one.
- Essential Information: Include vehicle description, sale date, mileage reading, and statement indicating “Actual,” “Not Actual,” or “Exceeds Mechanical Limits.”
- Signatures Required: Authentic ink signatures from at least one buyer and one seller are mandatory. Power of attorney is not permissible for signing odometer statements.
- Exemptions: Vehicles over 10 model years, certain commercial vehicles, off-road vehicles, insurer-sold repossessions, golf carts, and low-speed vehicles are exempt from this requirement.
Odometer Repairs and Compliance
In cases where an odometer is repaired, it must reflect the original mileage. If restoring the original reading isn’t possible, reset it to zero, affixing a label to the driver’s door frame with the prior mileage and the reset date. Future titles must be marked “TMU” (True Miles Unknown).
The Role of a Secure Power of Attorney (REG 262)
For vehicle transactions where the owner is unavailable, a power of attorney can authorize another individual to act on their behalf. In California, REG 262 is utilized for this purpose, which includes odometer disclosure. Note that any form alterations render it void.
