CENTREVILLE, Va. -

Though many would consider odometer rollbacks to be a consumer issue, data reported by Carfax on Monday suggests that rollbacked vehicles are showing up as dealership trade-ins, as well. 

Carfax released data that suggest odometer fraud is still a very present issue — one that can present problems for consumers and for dealers securing inventory, as well.

The company found that odometer fraud hits nearly 200,000 cars annually, costing consumers more than $760 million per year in lost value and unexpected repairs.

And though many rolled-back cars are sold through online classifieds and private sales, Carfax findings show some attempt to trade them in at dealerships, as well.

Carfax estimates that every state has as least 1 million "rollbacks" on the road.

According to the company’s findings, buyers in Nevada, Massachusetts, New York and Texas run the highest risk of buying one of these vehicles.

Carfax found that majority of rollbacks have at least 50,000 miles taken of their odometer.

Interestingly, it seems technological advancements and the growing age of vehicles on the road have contributed to the rising prevalence of odometer fraud.

First, odometer correction tools are now easily found online and can be used to illegally alter digital odometers.

And the Carfax study found that 14- to 15-year-old cars are most susceptible to a rollback — a startling finding as the average age of vehicles on the road continues to rise.

This past August, Auto Remarketing reported Polk’s findings that that the average age of all units on the road now stands at a record high of 11.4 years. Analysts arrived at that figure based on review of more than 247 million U.S. car and light truck registrations earlier this year.

For passenger cars, average age also met a record high at 11.4 years, while the average age of light trucks also increased, to a record 11.3 years. For more on vehicle age trends, see the Auto Remarketing story here.

"Odometer fraud is a calamity for car buyers," said Larry Gamache, communications director at Carfax. "There are serious problems that can arise from a rollback. Older, deteriorating parts lead to unexpected repairs while unperformed maintenance for the true mileage may compromise the safety and performance of these cars.

"Not to mention, each victim loses thousands of dollars because they pay much more than these cars are really worth," he added. "This new data is a clear warning that consumers everywhere need to be on the lookout for odometer rollbacks and protect themselves when buying used cars."
 

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