The Billion-Dollar Scam in the Car Market Grows with Odometer Tampering, Understand

Written by Bruno Teles

Published on 19/12/2023 at 16:52

Foto: Divulgação/Quilometragem

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The Tampering of Odometers Is a Serious Problem in the Used Car Market, Impacting Not Only Brazil but Also Other Countries.

In the current economic scenario, the Brazilian automotive market is facing an impressive increase in car prices. Since 2018, the average price of new cars has risen by 90%, jumping from R$74 thousand to R$141 thousand, according to the country’s leading news outlets. This rise, driven by the pandemic and the scarcity of components, has led many consumers to opt for used vehicles, generating a 32% growth in sales in March 2023 compared to the previous year. However, this boom has brought to light an old but still effective scam: tampering with vehicle odometers, a scheme that deceives buyers and unfairly inflates car values.

About 30% of used vehicles for sale in Brazil have their odometer tampered, meaning that 3 out of 10 cars show a lower mileage count than the actual one. With tools and apps readily available online, even modern digital odometers are subject to this fraud. As a result, cars are sold for a price above market value, based on the Fipe table, generating a billion-dollar loss for consumers.

Global Impact of the Scam

This is not a problem exclusive to Brazil. In the United States, over 450,000 vehicles are sold annually with tampered odometers, resulting in a loss of about US$1 billion per year. Even small variations in mileage can significantly affect the value of a vehicle. FedEx, for example, has been accused of selling vehicles with modified odometers, a case still under litigation that could become the largest odometer tampering scheme in the U.S.

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How to Identify and Avoid the Scam

To escape this scam, it is vital that buyers pay attention to signs of wear that are inconsistent with the presented mileage. For example, a car with low mileage but signs of wear on the seats, steering wheel, or pedals may indicate fraud. And of course, checking the Fipe table and conducting detailed mechanical inspections can help identify irregularities. In cases of suspicion, it is recommended that the buyer conducts a new inspection by a reliable company.

Consumers must remain vigilant and conduct thorough checks to avoid falling for this scheme. The Fipe table can be a useful reference point, but attention to details and consulting trusted professionals are essential for a safe purchase. It is crucial to be aware of this scam when looking for used cars, ensuring a fair and transparent transaction.

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The Billion-Dollar Scam in the Car Market Grows with Odometer Tampering, Understand

The Tampering of Odometers Is a Serious Problem in the Used Car Market, Impacting Not Only Brazil but Also Other Countries.

Global Impact of the Scam

How to Identify and Avoid the Scam

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The Billion-Dollar Scam in the Car Market Grows with Odometer Tampering, Understand

The Tampering of Odometers Is a Serious Problem in the Used Car Market, Impacting Not Only Brazil but Also Other Countries.

Global Impact of the Scam

How to Identify and Avoid the Scam

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Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

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