Feds extend odometer disclosure for used vehicles

The Nevada DMV is advising private party vehicle sellers and the automotive industry of a new federal odometer disclosure rule that doubles the amount of time odometer readings must be declared at the time of a vehicle sale.

Effective Jan. 1, vehicles of model year 2011 and newer will be subject to odometer disclosure for 20 years rather than the current 10 years. Under the old rule, a 2011 vehicle would have become exempt from disclosure in 2021. Under the new rule, the odometer reading must be disclosed at the sale of a 2011 vehicle until 2031. 2012 vehicles will become exempt in 2032 and so on.

The immediate impact is that 2011 vehicles will not become odometer exempt on Jan. 1, as they would have under the older rule. The new rule applies even if the existing title says “Exempt - Model year over 9 years old.”

The Nevada DMV has issued some simple guidelines for compliance:

• If the vehicle is a 2011 model or newer, the seller must enter the current mileage in the Odometer Reading section of the title upon sale of the vehicle.

• If the vehicle is a 2010 model or older, the seller may check the “Exempt” box on the title.

Private party sellers, in particular, need to know they must obtain a paper title and disclose the mileage even if the title itself says "Exempt - Model year over 9 years old." The DMV will reject paperwork for sales of vehicles 2011 or newer unless the odometer disclosure is completed. The Department will not accept an Application for Duplicate Title and Bill of Sale or a non-secure Power of Attorney on these vehicles.

“We want all of our customers to avoid repeat visits to the DMV,” said Director Julie Butler. “Buyers and sellers both should make sure the title is completed properly.”

For used vehicle dealers and other businesses in the automotive industry, the new rule means they will be required to disclose the odometer reading on a greater number of vehicles.

The new rule from the National Highway Traffic Safety Administration is intended to help combat odometer fraud as the nation’s vehicle fleet ages. The average age of a vehicle in the U.S. is now almost 12 years, up from 7.6 years when the odometer rules were last changed in 1988.

“NHTSA’s view is that the increased age of vehicles, the changes in the used car market prompted by vehicle longevity, the relative ease with which modern odometers may be rolled back and the known trends in odometer fraud support extending the exemption to 20 years,” the agency stated in rule-making documents. The new federal rule does not affect the state of Nevada law that motorists provide their current odometer reading at the time of vehicle registration or renewal. The Nevada law applies to most vehicles regardless of age.