Federal rule extends used vehicle odometer disclosure period

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The Nevada Department of Motor Vehicles (DMV) has announced a significant change in federal regulations regarding odometer disclosures for used vehicles. Effective January 1, 2021, the rule mandates that odometer readings must be disclosed for vehicles of model year 2011 and newer for a period of 20 years, doubling the previous requirement of 10 years.

This adjustment means that a vehicle from the year 2011 will now require an odometer disclosure until the year 2031. Previously, such vehicles would have been exempt from this requirement starting in 2021. The same pattern will apply to subsequent model years; for instance, vehicles from 2012 will become exempt in 2032.

The Nevada DMV highlights that private sellers must ensure they have a paper title and disclose mileage, even if their title indicates "Exempt - Model year over 9 years old." Paperwork for vehicle sales involving models from 2011 or later will be rejected if the odometer disclosure is not included. Additionally, applications for duplicate titles or bills of sale and non-secure power of attorney documents will not be accepted under these conditions.

Director Julie Butler emphasized the importance of compliance to avoid unnecessary visits to the DMV: “We want all of our customers to avoid repeat visits to the DMV,” she said. “Buyers and sellers both should make sure the title is completed properly.”

For businesses in the automotive sector, this new rule implies an increased obligation to report odometer readings on more vehicles than before. However, vehicles exceeding a gross vehicle weight rating (GVWR) of 16,000 pounds remain exempt from this requirement.

This regulatory change by the National Highway Traffic Safety Administration (NHTSA) aims to reduce instances of odometer fraud as older vehicles become more prevalent on U.S. roads. The average age of cars has risen significantly since the last update to these rules in 1988—from approximately 7.6 years to nearly 12 years today.

“NHTSA’s view is that the increased age of vehicles, the changes in the used car market prompted by vehicle longevity, the relative ease with which modern odometers may be rolled back and the known trends in odometer fraud support extending the exemption to 20 years,” stated NHTSA officials.

It is important to note that this federal rule does not alter existing Nevada state law requiring motorists to provide current odometer readings during vehicle registration or renewal processes. This state law applies broadly across most vehicles regardless of their age.