Cars are expensive, and these days, buyers are more than incentivized to find a good deal wherever and whenever they find them.
According to the latest data from Cox Automotive, the price of the average new car sits at an eyewatering $49,740 as of December 2024; a level that leaves many buyers scrambling to the used market for their next vehicle.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
Though used prices are slightly lower, with Cars.com data showing average prices dipping 4.9% to $28,819 in 2024, they denote that market conditions such as a tighter inventory of 0-6-year-old cars may cause the value of used cars to climb this year.
However, as buyers scour for deals, the trusted auto history reporting service CarFax warns that one form of vehicle fraud is rising and could make the best bargain an expensive mistake.
Turning back the numbers on the odometer
Odometer rollback—the deliberate act of physically or digitally manipulating a car's odometer to make it look like it has fewer miles—is something we may have seen in movies like the 1996 film Matilda.
In the movie, Danny DeVito's character—a used car salesman, nonetheless—demonstrated to the titular character and her brother how it was done using a power drill. Although methods have changed, unfortunately, this thing that seems like fiction is all too real and way too common.
According to CarFax, about 2.14 million vehicles out on the road in 2024 had rolled-back odometers, a figure that has increased by about 82,000 vehicles from the prior year and has jumped 18% since 2021.
CarFax researchers have also found that some used car buyers in certain states are much more affected than others. According to them, used buyers in California have it the worst, as they estimate that over 484,500 vehicles have messed with their mileage.
Following the Golden State is the Lone Star State, Texas, with 294,200 vehicles, and New York, with 97,400 vehicles. Other states, however, have seen dramatic increases; cases in Virginia jumped 11.7%, while Arizona and Florida have seen respective jumps of 8% and 6.4%.
More Automotive:
- Mitsubishi considers an exit from Honda-Nissan merger
- U.S. tariff plan won't work for the auto industry
- Subaru mistake exposed many owners to big risk
In today's digital age, odometer fraud is much more involved than simply "rolling back the numbers by hand." Today's fraudsters could "turn back the clock" in seconds by using easily accessible technology that interacts with modern cars' on-board computers.
"Odometer rollbacks can occur when an unscrupulous owner or seller of a car alters the miles that display on a car’s gauge cluster," CARFAX Vice President of Data and Public Policy Faisal Hasan said in a statement.
"This might be done as a way to avoid mileage charges in a vehicle lease or to dramatically increase the value of a car. Today’s technology makes rolling an odometer back easier than ever."
Related: Your car dealership experience is about to get much, much worse
Scammers have an incentive to roll back the miles
The odometer, which shows a car's mileage, is often used as a reference to dictate the vehicle's value. A car with a higher mileage indicates that it has been used more often and often commands lower prices on the used market due to potential maintenance.
False information from a rolled-back odometer can cost owners an average of $4,000 off their cars' value. however, the issue can have devastating effects on some in-demand models.
For example, CarFax compared the values of a 2018 Ford F-150 with only 50,000 miles to one with 150,000 miles. Although both were 1-owner cars that had not been in accidents, the difference in value between the two is roughly $10,000– a huge incentive for a scammer to change the odometer.
Besides using the vehicle history reporting service that it is known for, CarFax advises used car buyers to exercise caution when buying a car; be attentive to any flaws any car may have, resist any sales pressure from sellers, and walk away if a deal seems to be too good to be true.
Additionally, they note that an inspection from a trusted mechanic can tell if a vehicle looks older than its odometer suggests.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
