Odometer issues are highly common in the state of Canada. Fraud with odometer reading enables sellers to sell their vehicles at a higher price. So, if you want to understand odometer reading and its statement, go through the article below!
What is an odometer disclosure statement?
When selling any vehicle, under federal law, the seller must provide an odometer disclosure statement to the buyer that will ensure the odometer reading is accurate and correct. An odometer disclosure statement is a legal document that provides information about the mileage on a vehicle.
The statement has the purpose it discloses the actual mileage on the vehicle and any known discrepancies to help prevent odometer fraud.
The following content is deduced from an odometer statement:
* The date of sale
* The date of the odometer reading
* The seller’s details along with signature to attest.
* The buyer’s details.
* The actual odometer reading at the sale time.
What do you mean by ‘exempt odometer’?
An exempt odometer is a designation given to vehicles when their mileage is unknown, inaccurate, or undeterminable. There are certain cases where vehicles are exempted from odometer disclosure requirements. In such cases, the vehicle is determined to be older than a particular model year, inadequate for road use or has a gross vehicle weight of over 16,000 pounds.
If a vehicle is labelled as an exempt odometer, the seller should disclose this detail to the buyer on the odometer disclosure statement. The statement will interpret the mileage as ‘not actual’ or ‘exempt.’ It will also provide additional information about the vehicle, like the date of the last odometer reading and the exemption reason.
For a buyer, it is important to be aware of any exempt odometer status of a vehicle they are considering purchasing. While an exempted odometer does not necessarily, indicate that it has been tampered with or the vehicle has high mileage. Though, it does mean the mileage cannot be verified accurately.
In that case, the buyer should inspect the vehicle thoroughly before purchasing. The inspection must be carried out by a qualified mechanic that can review its repair and maintenance records to ensure an informed decision is being taken.
Does it involve any legal issues?
Using an exempted odometer can create multiple legal issues in various ways. For example, in certain jurisdictions, selling a vehicle with an exempted odometer without any disclosure of the true mileage reading of the vehicle to the buyer is considered illegal. That is because the actual mileage reading can affect the safety and value of the vehicle.
Additionally, in some jurisdictions, there is a requirement that a vehicle with exempted odometer must undergo additional documentation or inspection that will result in it getting registered or sold. Failing to comply with these regulatory obligations can result in other legal penalties or fines.
Closing Summary
After understanding what is an odometer disclosure statement and exempted odometer can result in legal action course, take purchasing precautions beforehand.
We at Allen Stewart offer legal consultation regarding lemon, odometer defaults and automotive laws. Visit the website and book your first consultation now.
Andrew Richardson is the author of this Article. To know more about Exempt odometer please visit our website: allenstewart.com