Why Is a Vehicle Exempt from Odometer Reporting and How the Latest Update Changed the Exemption Conditions?

A vehicle is sometimes exempt from odometer reporting even though actual miles play a crucial role in determining its value and condition. Considering the importance of mileage, it may sound questionable why an automobile can be exempt from reporting such important data. The exemption is granted for various reasons or special occasions.
To understand why particular autos are omitted from odometer reporting, you need to do a thorough evaluation of several factors. This article will help you explore several scenarios that can lead to exempting the odometer reporting.

What Is Odometer Reporting?

Odometer reporting is documenting and declaring a vehicle’s mileage during the selling or transfer process. The reporting is essential for transparency and trust in the auto market. In many regions, particular laws regulate this issue. Here are three important points that you should know about the odometer reporting:

1. What is it? Odometer reporting is the process of officially disclosing a car’s mileage when it’s sold. Such details are requested during registration or renewals. There is a legal requirement to do so.
2. How does it work? When a car is sold, the owner must provide the correct, current mileage (as displayed on the odometer) on the disclosure statement. If there is no special reason for an exempt mileage report, both the vehicle seller and the buyer sign this paper to confirm the accuracy of the information.
3. Why is it important? Accurate odometer reporting protects customers by providing trustworthy information about a vehicle’s use and expected condition. It is also helpful for the whole auto sector, eliminating fraudulent activities that might result in huge financial losses for inexperienced customers.

Overall, stating mileage builds trust and confidence between the buyer and seller. It also creates a sense of fairness among the sides. Hence, it’s always a good idea to sign the documents.

Legal Framework for Cars Exempt from Odometer Reporting in 2024

Odometers are crucial components of automobiles, and every owner or buyer pays attention to them. That’s why countries try to monitor them carefully and ensure that they work correctly. According to the NHTSA, up to 500,000 vehicles in the United States have misleading mileage, which costs US customers around 1 billion US dollars.

Odometer fraud has become an increasing threat in the automobile industry. It affects buyers, sellers, and the overall process of vehicle purchasing. In response to this issue, rules and regulations have been created to prevent odometer tampering and manipulation. In the United States, for example, any tampering with or alteration of an odometer is strictly illegal by federal law under the Motor Vehicle Information and Cost Savings Act, generally known as the Odometer Act. However, the specific charges and penalties may vary depending on the state and jurisdiction.

Although an original mileage report is essential for automobiles, in some conditions, vehicles have exempt mileage, and their owners don’t have to declare it at all. The exemption is allowed by the law, and important updates have been made in 2021.

Why Is a Vehicle Exempt from Odometer Reporting?

According to the latest changes in the law, from 2021, a vehicle is exempt from actual odometer reporting when it is 20 years old or older. If your car is less than 20 years old, you have to declare the correct miles.

Previously, the mileage exemption age was ten years; however, due to widespread odometer tampering, it was increased to twenty years. The decision was made to reduce manipulations and identify odometer fraud.

So, what does this mean? Let’s look at some examples. Imagine you own a 2010 model car and want to sell it. Because your automobile is 14 years old (within the current 20-year limit), it’s ineligible for exempt mileage status. Therefore, when you sell it, you must verify the actual mileage on the odometer and record it in the official paperwork. The buyer additionally confirms that miles are legitimate. This practice builds confidence between the two sides and makes the procedure more reliable.

What happens when an auto is more than 20 years old? In this case, you don’t have to disclose the current mileage. You only need to mark the status as “exempt.” Remember, once you define it as exempt from mileage, it can’t be changed back.

What Are Special Occasions When Cars Are Exempt from Odometer Reporting?

• Heavy Duty Automobiles: Autos such as trucks and buses are often excluded from mileage reporting due to their frequent commercial use. They have higher durability and longer lifespans than passenger vehicles. Their upkeep differs significantly from that of a standard automobile. As a result, mileage is less important, and they are exempt from additional declarations.
• Recreational Vehicles (RV) and Motorhomes: Unlike regular autos, RV and motorhomes undergo significant customization and modifications. These changes affect its wear and tear, performance, and functionality. Because of the purpose of such cars, distance-related data doesn’t contain any valuable information in this case.
• Diplomatic Cars: Diplomatic vehicles have exempt mileage reporting because they are used by embassies or consulates and require strict confidentiality. They are utilized for specific missions, and disclosing mileage information would jeopardize their privacy and diplomatic mission. Moreover, the usage of diplomatic vehicles is exclusively determined by the Vienna Convention on Diplomatic Relations.
• Trailers: This is a special case as trailers do NOT have built-in odometers. They can be used in a wide range of scenarios, often attached to other vehicles. In addition, trailer depreciation and maintenance are influenced by the weight it carries and not by the covered distance. Because of this, measuring mileage correctly is practically impossible and meaningless.
• Antique or Historic Cars: The value of such autos is determined by their uniqueness and history. Because of their significance, they are driven far less than ordinary vehicles. They are mostly used on car shows, parades, and special occasions. Plus, they regularly have pricey restorations (including odometers) for maintenance reasons. Therefore, measuring mileage has no practical implication.

How Mileage Can Be Interpreted?

Vehicle mileage has multiple implications, and it can help you learn more about your automobile. The first aspect that you should evaluate is whether the miles are high or low.

1. High mileage often implies frequent use, which can result in increased wear and tear on the engine, transmission, and other components. It also indicates that the car will require more regular maintenance and repairs.
2. Low mileage suggests that a car has been used less and may be in better overall condition. Such automobiles often have less wear and tear, which might contribute to a longer lifetime and fewer unexpected maintenance requirements.

Mileage significantly affects depreciation and valuation. Cars with lesser mileage have greater resale prices since they are believed to have a longer remaining lifespan. Vehicles deteriorate over time, but excessive mileage accelerates the process. Lower-mileage automobiles depreciate more slowly, allowing them to retain their value longer.

Despite being significant, mileage is not always the best measurement. People whose cars are not exempt from odometer reporting try to avoid declaring the actual miles and change the original odometer showing. They have various devices for manipulating odometers, making them unreliable.

What Tools Can Modify Mileage?

1. Odometer Rollback Devices: These devices physically change the mileage shown on the odometer and make the system display a lower distance. These tools are easily trackable and identifiable.
2. Diagnostic Tools: Advanced diagnostic equipment used by specialists may access and manipulate vehicle data, such as odometers. In the wrong hands, these technologies can reduce or alter mileage. However, the original mileage is easily traceable.
3. Software and Electronic Gadgets: Modern vehicles store their mileage information in ECUs. People use various software to manipulate such cars. Also, hackers can identify vulnerabilities in vehicles’ systems and modify data in their favor.
4. Manual Odometer Adjustment: Older cars have mechanical odometers, which work via a mechanical mechanism. In old vehicles that don’t have an exempt mileage report, people with malicious purposes physically interfere with the odometer and modify the original miles.

As you can see, people try to utilize different methods to modify the original mileage. However, all of these approaches have one huge disadvantage: they are easily detectable, and the original mileage is quickly traceable. Consequently, people have recently started using the Mileage Blocker. This device stops the mileage recording process and is entirely untraceable. It is created for testing purposes only, but individuals sometimes use it unethically for fraudulent purposes.

Untraceable Mileage Blocker Device

A mileage blocker is a specialized gadget that stops your vehicle’s mileage recording mechanism. The great aspect of this tool is that it does not erase or reset any existing mileage. This device prevents additional kilometers from being counted and pauses only the recording process.

The mileage blocker has different modes that you can choose from. The SKF blocker has a smartphone app. You can download it and monitor or manage your device remotely from your phone. Remember that this special tool is for car testing and tuning only.

How do you set it up? Don’t worry! The device comes with easy installation instructions. The mileage blocker is now available, and you can buy the SKF blocker online. For any additional details, please contact customer service or support.

Takeaway

A vehicle is exempt from odometer reporting when it becomes 20 years old or falls into special categories such as HDA, RV, diplomatic, trailer, or antique. Although the odometer plays a significant role, it can be manipulated and show misleading data. That’s why you must be careful and check all the details.