DRIVERS in the US are being urged to double check the mileage on their cars after an auto shop owner pleaded guilty to odometer fraud.
Prosecutors estimate up to 31 million miles may have been wiped from hundreds of vehicles.
Simon Nwaru Jr., who previously owned a dealership called S. Automotive, pleaded guilty to disconnecting, resetting, and altering the odometers on vehicles, said the United States Attorney’s Office in a statement.
The point of odometer fraud is to trick consumers into thinking that the vehicle being sold has more value than it does, allowing the seller to charge more for the car.
Court documents revealed between January 2021 and January 2023, at least 300 vehicles were sold with tampered odometers.
This, said prosecutors, accounted for at least 31 million miles being removed from records.
Customers urged to check
The documents also state Nwaru’s criminal activities caused a loss of tax revenue to the State of Ohio.
Nwaru rolled back odometers before selling cars to customers at his dealership, which was located at 4333 E. Main Street, Whitehall, Ohio.
Customers who purchased a vehicle from the Whitehall dealership between November 2020 and May 2022 are being advised to double-check their vehicle’s dashboard.
As previously reported, US District Attorney Kelly Norris indicted the auto shop owner before a federal grand jury in April.
The DA said that Nwaru rolled back the odometers on vehicles, changing the high mileage to lower mileage before selling them to drivers.
It was revealed that he tampered with at least eight vehicles.
Nwaru allegedly changed the cars’ mileage illegally, reducing it by 80,000 to 100,000 miles.
When a car’s mileage is reduced, it means that the vehicle can travel a shorter distance on a given amount of fuel.
This case was investigated by the United States Department of Transportation, National Highway Traffic Safety Administration’s Office of Odometer Fraud Investigation and the Ohio Bureau of Motor Vehicles Investigations Section.
Mileage is influenced by several factors, including driving habits, vehicle maintenance issues, and mechanical problems.
Major problem
The National Highway Traffic Safety Administration reported that more than 450,000 vehicles are sold with false odometer readings every year.
The agency estimates that the crime costs American drivers more than $1 billion annually.
“It can be difficult, but not impossible, to detect whether a vehicle’s odometer has been altered,” according to the NHTSA website.
Drivers are urged to ask about the vehicle’s title and compare the mileage on it with the vehicle’s odometer before buying a car.
The NHTSA said that if the mileage notation seems hidden or is not easy to read, that could be a red flag.
Drivers can also cross-reference the mileage on the odometer with the mileage indicated on the vehicle’s maintenance or inspection documents.
The NHTSA also states that car buyers can examine the tires — if the odometer on the car shows 20,000 or less, it should have the original tires.
Nwaru will be sentenced at a later date.
Dealership tips
Here are some expert tips when purchasing a car from a dealership lot:
- 1. Set your price: Ensure you’ve calculated your monthly budget before going to the lot. You should include the car’s loan payment, insurance costs, fuel, and regular maintenance.
- 2. Research: Make sure you know which cars you’re interested in test driving before you reach the dealership.
- 3. Pre-approval: Secure financing before you go to the dealership. Dealerships may give you a better interest rate if they are competing with an outside bank.
- 4. Test away: Get behind the wheel before making any payments. A car purchase will be worth thousands of dollars – drivers should ensure they like the drivetrain, steering feel, and comfort of the car before taking it off the lot
- 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand when negotiating price.
Source: Kelley Blue Book
