Mileage Verification with Car-Pass: Ensuring Accuracy for Vehicles Abroad
Car-Pass offers numerous benefits for both buyers and sellers of vehicles abroad. It is an established solution in certain European countries, aiming to combat odometer tampering in the used car market. Implemented in Belgium and the Netherlands, Car-Pass provides a certificate to buyers at the time of sale, verifying the vehicle's mileage accuracy.
The European problem of odometer manipulation
Certain used car vendors will not hesitate to manipulate the odometer in order to decrease the mileage shown by using tools freely available for sale online. The result: a significant increase in the vehicle’s value. Problems:
- It is not always technically possible to detect odometer manipulation, as maintenance books can be easily falsified.
- It is not possible to obtain information on the vehicle from competent organizations without already being the owner or without the vendor’s consent for data protection reasons.
- Even when odometer manipulation is detected, frauds often remain unpunished.
A European Commission study shows that dealers who sell used vehicles often fail to fulfill their information obligation and do not check mileage before the sale. For the consumer, it is therefore extremely difficult to obtain or to verify the mileage displayed on the meter. That is why certain German car experts are proposing a complete and thorough inspection for approximately 70 euros (“Gebrauchtwagenuntersuchung”) on used vehicles to be sold.
A report published in 2016 by the European Consumer Centres Network (ECC-Net) also revealed that even though odometer manipulation is prohibited in 26 European countries, only 9 of them + UK have proposed a solution to verify a vehicle’s mileage before its purchase. Out of these 10 countries, 8 propose that the buyer consults a national mileage registry of registered vehicles. Belgium and the Netherlands are the only two countries to suggest that a certificate be given to the buyer at the time of sale, specifying the vehicle’s mileage.
Since 2019, France also initiated a public service allowing car owners to edit a report of the car’s situation. However, this system is not mandatory, not necessary well known and not connected with other systems in the EU such as the Car-Pass Belgium allows with some countries. Also the information available includes only the ones in the Car registration system SIV (Système d’immatriculation des Véhicules), which means that only the mandatory technical control results appear, not every single visit to an automotive professional, as it is the case in Belgium. The European Parliament, in its CARS 2020 resolution (action plan for a strong automobile industry, competitive and lasting in Europe), “calls on the Commission to take measures, in cooperation with the Member States, to ensure a high level of consumer protection, transparency and safety in the second-hand car market, and to work towards a gradual phasing-out of polluting and less safe vehicles; commends the Commission’s recommendation in the roadworthiness testing regulation to require mileage recording at each test; considers that initiatives such as the ‘Car Pass’ scheme in Belgium could be encouraged by a European Standard; notes that re-registration procedures for vehicle transfers must also discourage cross-border mileage fraud;” Preventative measures like the Car-Pass reinforce transaction transparency in Europe and allow consumers to easily verify the actual mileage of the vehicle.
This was again reaffirmed on 24th January 2024 by Belgium’s Secretary of State for the Budget and Consumer Protection as a priority of the Belgian Presidency of the Council of the EU.
Consumer safety risks and economic damages
The manipulation of mileage meters is widespread for example in Germany where it affects more than 1 out of every 3 vehicles and causes 6 billion euros worth of damage per year. This practice in Germany is especially harmful to the many foreign consumers who cross the borders to find the car of their dreams. The internet is also full of used vehicle offers at discounted prices.
Beyond the fraud on the price of the vehicle, the mileage manipulation raises safety concerns for consumers on European roads. Without knowledge of the real condition of the vehicle, the consumer is less attentive to the wear of the brakes, tires, or any other technical or electronic equipment, resulting in a greater risk of a breakdown or accident.
Unequal punishment in Europe
While the manipulation of mileage meters is illegal in 26 European countries, the penalties vary considerably from one state to another. In France, if you prove that the actual mileage of the vehicle does not correspond to that announced in the sale’s contract; you may claim cancellation of sale for hidden defect. The cancellation may be ordered by the court even if the seller was not aware of this problem. In Germany, such recourse is highly hypothetical; you must prove that the odometer was tampered with AND that the vendor had the intention of deceit. This is all the more difficult because, in practice, vendors include standard clauses such as “displayed mileage = estimated mileage, actual mileage not known” in sales’ contracts.
Criminally, fraudsters are no worried in Germany. Only the successful modification of the meter can be considered as a fraud offense, punishable by a year imprisonment or a fine, compared to 3 years of imprisonment and 300 000 euros under French Law. The best solution is therefore to verify the actual mileage of the vehicle before buying it.
An already existing solution in Europe: Car-Pass
To fight against tampering with used car odometers, certain European countries implemented a certificate called “Car-Pass” to be given to the buyer at the time of the sale.
Benefits of implementing a unified Car-Pass across the EU
- Provide equal protection to consumers purchasing used vehicles in any EU Member State
- Strengthen trust in the internal market and the broader European market
- Showcase tangible measures and the advantages of a Europe responsive to its citizens
