Odometer problems

This Topic Includes:
Supplier Information Notice
Evidence of odometer tampering
Remedies
Penalties for tampering

Odometer readings on used vehicles in New Zealand may be unreliable. There is always a chance with any used vehicle that the odometer may have been tampered with.

If you bought your motor vehicle before 15 December 2003 from a licensed motor vehicle dealer, check the original window notice. If it says:

"Warning, odometer reading may be incorrect"

...the law says that you have been warned before you bought the car and there is not much you can do.

If there is a statement about the odometer reading but it is NOT the EXACT above wording, then you may still have legal rights under the Motor Vehicle Dealers Act.

For example, the notice might say,

"We make no representations as to the accuracy of the odometer reading".

This wording is not adequate under the Motor Vehicle Dealers Act - it must be the exact warning shown in the above paragraph.

Supplier Information Notice

For motor vehicles sold on or after 15 December 2003, if the motor vehicle trader believes the odometer reading is incorrect, the trader must include the following words on the Supplier Information Notice:

I (name of supplier) cannot accurately determine the actual distance this motor vehicle has travelled because the odometer reading may be inaccurate.

Or

This motor vehicle’s odometer reading is inaccurate.

If either of these statements is included on the Supplier Information Notice for your vehicle, you will not be able to make any claim against the trader for an inaccurate reading.

If the reading was included, then it must represent the actual distance that the vehicle has travelled. If you can prove that the reading is incorrect, you may have a right to a remedy.

Evidence of odometer tampering

To prove your odometer has been tampered with you will need to gather very good evidence.

This is a list of some of the things you will need to do to gather sufficient evidence of tampering:

• Contact the nearest franchise dealer for your make of vehicle and see if they can access any overseas service records. (These records can be used as supporting evidence only and are not in themselves enough to prove your claim.)
• Get a mechanic to give you a report on the vehicle. The mechanic can look for things such as expected wear and tear to indicate the probable mileage of the vehicle.
• If you have kept records of all faults and repairs, ask a mechanic (preferably in writing) to comment on whether these repairs are to be expected in a vehicle that has travelled the distance shown on your odometer.
• Take your vehicle to an automotive instrument specialist. Ask if they are able to find any evidence of tampering and whether they can say how much the odometer is likely to have been wound back.

Remedies

The Fair Trading Act

Under the Fair Trading Act you may be able to claim compensation from a trader if you can prove the car’s odometer reading is a false representation about the previous use of the vehicle.

Be aware

The Fair Trading Act does not apply to private sales.

Consumer Guarantees Act

Under the Consumer Guarantees Act, if the vehicle does not match its description, or it is not of acceptable quality given the distance travelled against the odometer reading, you may have a right to a remedy from the trader.

It will be difficult to get a refund unless you purchased the vehicle recently and the difference in mileage is substantial.

But you may have a claim for compensation for the amount lost in the vehicle’s value. The simplest way to determine compensation is to compare the difference in value between what you paid for the vehicle and what it would have been worth if the odometer had shown the true mileage. Request a written valuation from a registered motor vehicle trader.

The Consumer Guarantees Act does not apply to vehicles sold at auction, by tender or by private sale.

Penalties for odometer tampering

It is a serious offence under the Motor Vehicle Sales Act for a motor vehicle trader to tamper with odometers. Traders convicted of odometer tampering can be fined up to $200,000.

If you have information that a motor vehicle trader is tampering with odometers, you can report this to the Motor Vehicle Traders Registrar by using the complaints form available online from the Motor Vehicle Traders Register website.