A warning has been issued to consumers about a surge in odometer tampering, following a four-fold increase of the offence in NSW.

As used motor vehicle sales have risen during the COVID-19 pandemic, so have incidents of odometer fraud, according to Minister for Fair Trading Eleni Petinos.

Odometer fraud is defined as perpetrators reducing the mileage on a vehicle’s odometer in order to deceive potential buyers.

“NSW Fair Trading Investigators dished out $112,200 in fines and 76 penalty notices in 2021 and 2022 - a huge jump from 22 total penalties in 2020,” Ms Petinos tells.

“In one case a seller shaved more than 400,000km off a 2012 Subaru XV, reducing the odometer from 470,000km down to $52,709km. The vehicle was then sold for $32,000, an $11,000 increase on the original sale price.”

“In another example, a 2009 Toyota Hilux was resold for $30,980, more than five times its sale price of $6,000, after the odometer reading was lowered by about 280,000km.”

Shifty sellers on notice

Ms Petinos has a warning for anybody considering attempting odometer fraud.

“Anyone considering conning a potential buyer by odometer tampering should know that when you are caught, it is going to cost you,” she says.

“To intentionally rip off a fellow everyday Australian just trying to buy a second-hand car is abhorrent and our NSW Fair Trading Inspectors will continue to go after the crooks who think this type of behaviour is okay.”

This bad behaviour is unlikely to be your friendly local car dealer.

The majority of investigations conducted by NSW Fair Trading found that the sellers did not have motor dealer licenses, and had been advertising on sites such as Facebook Marketplace and Gumtree where normal standards do not apply.

Regional buyers at risk?

Local used car seller Mick Evans of Carco Coonamble says that the issue is not new but suspects it is less prevalent in western NSW.

"Certain areas in the city are like certain parts of a beach where you shouldn't swim," Mr Evans said.

"There are thousands of people who survive by buying cars and winding back the kilometres."

According to Mr Evans, the car sales market has conservatively expanded around 30% since pre-covid levels thanks to millions of people seeking to avoid public transport and covid-related supply delays with new imported vehicles.

However the access to keen buyers through online platforms - regardless of where they live - has potentially pushed the existing issue into regional areas.

"Your single car seller in the bush probably doesn't have the means to spin the speedo," he said.

"A lot of readings are controlled through the car's computer and that's a pretty good safeguard."

"I don't think it's alarm bells out here yet," he said. "Although the shady guys could all be moving further west, especially with your social media."

Buyer beware

In order for consumers to avoid odometer fraud, Ms Petinos has provided a few tips.

“If it seems too good to be true, it just might be, so it’s worth taking extra measures to make sure you don’t end up with an expensive mistake,” she says.

“It is important to see the registration paperwork and proof of ownership of the vehicle, as well as meet the owner and sight their identification.

“Have the vehicle inspected by a licensed repairer and conduct a Personal Property Securities Register check (PPSR) or buy a vehicle history check.”

Mr Evans also suggests a few red flags to look out for.

"Always ask if it's got books and check for wear and tear in the seats, the tightness to drive, or if the engine is noisy, any whines or grinds through the gearbox," he said.

"That way you'll know it hasn't done 143,000 kilometres - it's more like 443,000."

If you believe that you may have been a victim of odometer fraud, visit here