NCJ Number
62120
Date Published
1978
Length
22 pages
Annotation
THE CAUSES AND INCIDENCE OF TAMPERING WITH USED CAR MILEAGE READINGS IN AUSTRALIA WERE EXAMINED BY COMPARING ACTUAL READINGS WITH PRIOR OWNERS' REPORTS AND BY INTERVIEWING USED CAR DEALERS.
Abstract
A RANDOM SAMPLE OF 103 CARS FROM 12 BRISBANE, AUSTRALIA, CAR DEALERS WAS SELECTED. THE 43 PRIOR OWNERS WERE CONTACTED BY MAILED QUESTIONNAIRE OR FOLLOWUP INTERVIEW. COMPARISONS WERE OBTAINED FOR 35 OF THE CARS. THIRTEEN CARS HAD A MILEAGE READING AT LEAST 1,000 MILES HIGHER AT THE TIME OF THE SALE THAN WHEN OBSERVED IN THE USED CAR LOT. THE AVERAGE MILEAGE DISCREPANCY WAS 10,000 MILES; THE LARGEST, 53,000 MILES. MILEAGE FRAUD WAS FOUND FOR 10 OF THE 12 DEALERS. EXTRAPOLATION OF THIS DATA INDICATED THAT MORE THAN 70,000 USED CAR SALES IN QUEENSLAND IN THE STUDY YEAR INVOLVED A MILEAGE FRAUD. IN THE SAME YEAR, REPORTED CRIMES OF ALL KINDS TOTALED 80,811. INTERVIEWS WITH 20 OTHER USED CAR DEALERS REVEALED THAT MOST MILEAGE FRAUDS ARE INITIATED BY THE MANAGEMENT AND THAT LOW PROFIT MARGINS ON NEW CARS, RESULTING FROM EXPLOITATION BY MANUFACTURERS, PROMPT THESE ATTEMPTS TO MAKE HIGHER PROFITS ON USED CARS. RESULTS ALSO INDICATED THAT HONEST USED CAR DEALERS CANNOT COMPETE WITH DISHONEST ONES; MARKET FORCES THUS PROMOTED CRIME. THE STIGMA ATTACHED TO USED CAR DEALERS MAY FURTHER PROMOTE THEIR ILLEGAL BEHAVIOR. POTENTIAL POLICY SOLUTIONS INCLUDE (1) FINING OFFENDERS, (2) ENFORCING LEGISLATION REQUIRING WRITTEN MILEAGE RECORDS, (3) SELF-POLICING BY USED CAR DEALERS, (4) PUBLICIZING NAMES OF FIRMS WHICH CONSISTENTLY DEFRAUD CUSTOMERS, (5) CONSUMER EDUCATION, (6) MAKING ODOMETERS LESS SUSCEPTIBLE TO TAMPERING, AND (7) CHANGING THE ECONOMIC AND SOCIAL STRUCTURE WHICH PROMOTES THIS KIND OF FRAUD. INTERVIEWS WITH POLICE AND DEALERS AND FOOTNOTES WHICH INCLUDE REFERENCES ARE INCLUDED. FOR RELATED ARTICLES, SEE NCJ 62118, 62119, AND 62121-62126. (CFW)