Used car dealers tampering odometer readings

[RogerNg_185295]

1 hour ago, Macrosszero said:

Active word here is “Mini”. Based on what I read/heard, not exactly the last word in reliability. Maybe it spent more time getting fixed than being driven. 

MINI is never associated with reliability at all.

[shrjun]

One fine like this and all the nonsense will stop 🤣

 

https://www.justice.gov/opa/pr/used-motor-vehicle-dealers-sentenced-odometer-tampering-scheme

Yesterday, in federal court in Brooklyn, Shmuel Gali was sentenced by U.S. District Judge Kiyo A. Matsumoto to 60 months’ imprisonment for his role in a long-running odometer tampering and money laundering scheme and ordered to pay $3,936,000 in restitution. The defendant pleaded guilty in August 2020 to conspiracy to commit money laundering, conspiracy to commit odometer tampering, making false odometer statements and securities fraud.

“An automobile is one of the biggest purchases many consumers make,” stated Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Misrepresenting used car mileages defrauds buyers and hides important information concerning safety and reliability. The Department of Justice will continue to work with law enforcement partners to prosecute odometer fraud.”

“This sentence sends a warning that this office will prosecute those who engage in odometer tampering and deliberately dupe consumers into unknowingly paying inflated prices for their motor vehicles,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “With the defendant being sentenced to prison and ordered to pay restitution to his victims, he is being held to account for his greed in contriving this fraudulent scheme.”

“Automobile sales stand as one of the pillars of the American economy, requiring transparency and integrity,” said Acting Special Agent-in-Charge Thomas Fattorusso of IRS-Criminal Investigation (IRS-CI). “The financial expertise of IRS-CI was needed to uncover this criminal enterprise perpetuated by Shmuel Gali who received a just sentence relative to his criminal activity.”

Between 2006 and June 2011, Shmuel Gali, while conspiring with his brother Chaim, defrauded buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles that they sold. They used fictitious dealer names to purchase high-mileage, used motor vehicles from a national vehicle-leasing company; altered the odometers of the vehicles to reflect false, lower mileages; and then sold the vehicles at wholesale automobile auctions. On average, the odometers on the vehicles were rolled back by close to 70,000 miles. Consumers who purchased the vehicles at dealerships did not know the true mileage and paid inflated sales prices. 

This matter was investigated by the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Office of Odometer Fraud Investigation and IRS-CI.

Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Catherine M. Mirabile of the Eastern District of New York prosecuted the case.

[Wt_know]

used car dealer is KING here in cowboy town ... see pix 

 

On average, the odometers on the vehicles were rolled back by close to 70,000 miles. Consumers who purchased the vehicles at dealerships did not know the true mileage and paid inflated sales prices.

Edited July 11, 2021 by Wt_know

[Gnahp]

since odometer tampering is not illegal

my current car mileage is very high 

I was thinking paying a small fees to engage someone to adjust it to "lady doctor 4th car, seldom drive, lowest mileage in town"

will I get a higher price when I trade in the car?

what is the rate for such job?

Edited July 11, 2021 by Phang

[Leonardo47]

I believe odometer fraud is common here but LTA is not convinced or does not regard it as its problem. 
 

LTA says our cars are safe because of the mandatory inspection. 
 

It also says if you are a victim, make a police report, implying it’s not its problem?
 

This is like complaining there’s a mosquito problem in your neighborhood and NEA replying Singapore is clean and litter free so dont worry. 
 

Or complaining to the police about thefts in your neighborhood and getting the reply that if you are a victim make a police report instead of sending cops to investigate. 
 

Odometer fraud not only cheats car buyers out of thousands of dollars but it’s also a very dangerous practice. 
 

What steps has LTA taken to address the issue? 
 

As the regulator, it should be more proactive. 
 

At the very least it should investigate and see things for itself whether there are grounds for concern. 
 

 

 

[Heartbreakid]

After insurance, second hand car dealers are the biggest scammers here since tampering of mileage is a very common practice and not illegal.

[ER-3682]

On 4/28/2023 at 11:27 AM, Heartbreakid said:

After insurance, second hand car dealers are the biggest scammers here since tampering of mileage is a very common practice and not illegal.

Not all @Jamescis a Honest one.🤣

[Jamesc]

On 4/28/2023 at 11:30 AM, ER-3682 said:

Not all @Jamescis a Honest one.🤣

[Kona_rider]

On 4/28/2023 at 11:30 AM, ER-3682 said:

Not all @Jamescis a Honest one.🤣

dealers will guarantee not tamper with the mileage one...guaranteed!!!

 

 

 

 

 

only thing is the mechanic does it...haha...

[D3badge]

On 4/28/2023 at 4:55 PM, Kona_rider said:

dealers will guarantee not tamper with the mileage one...guaranteed!!!

 

 

 

 

 

only thing is the mechanic does it...haha...

AD dealer should be able to guarantee their brands of 2nd hand cars they are selling especially if the car is below 5 years old due to common 5 years warranty plus service credit, people GP back AD for servicing .

[Leonardo47]

It’s is against the law but proving it is difficult. 
 

This is why they remove all the documents from the car including the servicing stickers. 
 

LTA as the regulator should investigate but they simply tell you that if you’re the victim to report to the police. 
 

Unless the media highlight the issue, LTA can’t be bothered. 
 

LTA has failed consumers. 

[Leonardo47]

I don’t understand why LTA is not interested in dealing with the issue. No money to earn?

The best solution is for the authorities to mandate that a car history is recorded from day 1. 
 

That means at every stage (servicing, sale of the car, Vicom inspection etc) the mileage is recorded. 
 

This way any discrepancy in mileage can be found out. 
 

In the meantime, consumers should not be too naive and believe the claims of used car dealers. 
 

Consumers must show resistance. No mileage, no buy. 
 

 

[Leonardo47]

@ER-3682 It IS illegal but proving it is difficult. 
 

This is because a car does not have any history recorded. 
 

This is why these days they throw away every  receipt, documents, servicing stickers etc. Anything that can incriminate them. 

[Leonardo47]

@shrjun nice one. Send it to LTA to educate them or to wake them up. 

[Leonardo47]

@shrjun I agree with you: one fine and the nonsense will stop. 
 

Shame on LTA the regulator. Other matters they regulate till even the tiniest loophole is plugged. 
 

Fine them heavily, millions. 
 

 

[Leonardo47]

Since LTA our usually energetic transport regulator shows no interest in protecting consumers I suggest what people can do:

 

1. don’t be naive and believe the seller’s claims. Car seats can be changed, car can resprayed, engine bay can be cleaned up, dashboard can be replaced etc. 

2. Ask for proof of mileage and maintenance no proof no buy; walk away

3. Call the agent if its agent maintained to verify the mileage. 

4. Call the workshop if the service sticker is still available to verify the mileage and maintenance. 

5. If car has more than 5 owners and mileage is like 80,000 km walk away.

 

6. Examine the speedometer cover carefully to check any evidence of it having been removed. 

All businesses exist to maximise their profit in any way they can, including tampering with the mileage. Since, the authorities are not interested in going after them why not?

The best part is they can get the tool for only “few” dollars online to strike lottery. 

Having said all that, it’s YOUR money and you might be generous enough to inflate their bank account. 
 

 

[ER-3682]

People buy my Cars always said my Mileage are Tempered,i used less than 4,500Km per Year.

[Leonardo47]

It’s a no brainer to stamp out odometer tampering. 
 

I suggest 2 ways.

 

1. Every car that is registered from day 1 has a Log Book. Whenever it’s serviced, repaired, inspected, converted to a rental car, Grab, change of number plate or sold, the mileage is recorded in the log book and digitally as well by merchants  

 

Think of it as a cashier machine where every time there’s a transaction, there’s a record of it. 
 

This promotes transparency and deters cheating. 
 

2. Impose heavy penalties on the offenders.

 

Lastly, consumers must fight back and demand proof of claimed mileage. 
 

There must be a reason why car dealers get rid of all documents in the glove compartment, even the servicing stickers. 
 

People must show resistance.