Odometer fraud is emerging as a growing threat to used car buyers nationwide, according to new data from CARFAX. The company estimates that approximately 2.45 million vehicles currently on U.S. roads are suspected of having rolled-back odometers, a 14% increase from the prior year. That represents a sharp acceleration of the problem. By comparison, the year-over-year increase from 2023 to 2024 was just 4%.
“Odometer rollbacks occur when someone alters the mileage stored in a vehicle’s electronic systems to make it appear less driven,” said Faisal Hasan, vice president of data acquisition at CARFAX. “As modern vehicles have transitioned from mechanical to digital odometers, tampering has unfortunately become more common due to the wider availability of inexpensive tools. At the same time, a car’s mileage is now recorded more often, which allows us to identify discrepancies and better protect consumers.”
While digital odometers were once considered a safeguard against fraud, they have introduced new vulnerabilities. Mileage data is stored across multiple electronic modules in modern vehicles, and dishonest sellers can exploit weaknesses using readily available devices. CARFAX notes that although mileage is captured more frequently than ever during service visits, inspections, registrations, and emissions testing, fraudsters are also becoming more sophisticated in how they attempt to conceal inconsistencies.
The financial consequences for consumers can be significant. CARFAX says it estimates that vehicles flagged for possible odometer rollbacks lose an average of about $3,300 in value. That figure reflects only the immediate impact tied to overpayment or diminished resale value. In many cases, the real costs surface later. Buyers may face unexpected repair bills, accelerated maintenance needs, and potential safety issues caused by excessive wear on components such as brakes, suspension systems, steering parts, and drivetrains that appear to have far fewer miles than they actually do.
Certain vehicles are more frequently targeted. High-mileage vehicles that retain strong resale demand, including pickup trucks, SUVs, luxury vehicles, and popular commuter cars, are often the most affected. Rolling back even 40,000 to 60,000 miles can dramatically inflate a vehicle’s market value, creating strong incentives for fraud in private-party transactions and loosely regulated segments of the used-car market.
Geography also plays a role. While states with large vehicle populations continue to account for the highest total number of suspected rollbacks, smaller states are seeing the fastest growth rates. Montana recorded the largest year-over-year increase at 33%, followed by Tennessee at 30%, Arkansas at 28%, Oklahoma at 25%, Kansas at 24%, New Jersey at 21%, and Florida at 20%. Industry observers point to factors such as population movement, disaster-related vehicle transfers, and high used-car turnover as contributors in some regions.
For many buyers, the discovery comes too late. CARFAX shares this customer testimonial: “I needed to buy a car, and I negotiated the price down to something I could afford,” said Seven Beverly of Valencia, California. “Later, I decided to check the CARFAX report and saw there was a possible odometer rollback. It’s definitely something I wish I had known before buying.”
Federal law classifies odometer tampering as a serious crime, carrying potential civil and criminal penalties. However, enforcement can be difficult, particularly when vehicles change hands multiple times before discrepancies are discovered.
CARFAX says it advises consumers to review vehicle history reports before purchasing a used vehicle, not afterward; look closely for mileage gaps or inconsistencies; compare interior wear with the stated mileage; and have the vehicle inspected by a trusted mechanic. As used-vehicle prices remain elevated and inventory continues to turn rapidly, experts say vigilance is more important than ever. In an era when a few keystrokes can rewrite a vehicle’s perceived history, informed buyers remain the strongest line of defense.
Listeners to the Car Pro Show know I think AutoCheck.com is more reliable than CARFAX, but looking at CARFAX is certainly preferred to not looking at a history report at all.
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