Urgent warning for any Australian buying a used car – that could end up costing you thousands
Odometer fraud is on the rise as an undercover investigation reveals potential used car sellers can rack up thousands of miles for as little as $150.
Used car buyers are encouraged to visit websites such as Bell catcher to check the odometer of their potential car from the time it was last sold.
Buyers in NSW can use the government’s Service NSW website to check the last three odometer readings of a vehicle for free. The feature is available under the Check a vehicle registration section.
Odometer tampering was a huge problem in the 1980s and 1990s and saw sellers risking buyer safety by altering the display of how many miles a car has driven, but it appears to be on the rise again.
A low odometer means a used car can sell for a higher price, but the new owner won’t be wary of dangerous wear and tear, such as used suspension or brakes.
A journalist from 7News in Brisbane went undercover to discover first-hand how easy it is for sellers to commit the crime.
The reporter discovered that they could travel 100,000 miles in a 1997 Mercedes for just $150.
Used car buyers have been warned to be wary of odometer tampering amid a rise in fraud crimes
When they asked a mechanic how many miles they could clear on the car, they replied, “Whatever numbers you want, I can put it in.”
Peter Dever of the Motor Trades Association described the problem as ‘frightening’ and an ‘absolute plague’.
“What you buy on Facebook Marketplace and Gumtree may not be all it seems,” he said.
“The last thing you want is to buy a car that you think has low mileage, and then the transmission falls out.”
In May, Queensland police charged a 38-year-old man in Logan, west Brisbane, with 26 offenses linked to a “fraudulent used car syndicate”.
Police accused him of “rolling back the odometers and reselling the cars to unsuspecting people through websites and social media platforms.”
He is charged with fraud and attempted fraud, forgery, driving unregistered and uninsured vehicles and driving an unregistered vehicle.
In 2021-2022, the number of mileage fraud cases in New South Wales (NSW) has increased dramatically, quadrupling compared to previous years.
During this period, NSW Fair Trading took action by imposing fines of $113,000 and issuing 103 penalty notices.
This is in stark contrast to the only 38 penalties imposed in the previous period 2019-2020.
David from NSW (pictured) and his son realized the odometer on the 2008 Toyota Hilux they recently purchased for $26,000 had been tampered with after using the new check
In one case, a salesman manipulated the mileage of a Subaru XV, reducing it by as much as 250,000 miles.
The deceptive act allowed them to sell the vehicle for $32,000, which was $11,000 higher than its original market value.
In another alarming incident, a 2009 Toyota HiLux was resold for as much as five times its original retail price of $6,000, netting the seller a total of $30,980.
The exorbitant price was achieved through fraudulent tampering with the odometer, which reduced the displayed mileage by 280,000 kilometers.
NSW resident David and his son realized the odometer of the 2008 Toyota Hilux they bought for $26,000 had been tampered with after using the Service NSW cheque.
The Hilux’s odometer showed that it had traveled 188,000 kilometers during its lifespan.
However, when David searched the license plate via the Service NSW app, he discovered the car had been rolled back more than 250,000 kilometres.
The father said the discovery devastated his son, who was buying a car for the first time.
‘He’s a young guy, he works hard. He’s just an honest kid who got ripped off,” he told Nine News.
“I tried to contact (the seller). I sent him messages saying, “Look, can we please fix this?”
“I gave him a chance to be a man about it because he clearly did the wrong thing and I haven’t heard from him yet.”
NSW Roads Minister John Graham said the free check will help buyers “take back some of the power” from fraudsters. (Pictured: the Hilux that David and his son bought)
NSW Minister for Better Regulation and Fair Trade Anoulack Chanthivong urged buyers to take extra care when looking at used cars online.
“Most of the cases investigated involve sellers operating through online platforms such as Facebook Marketplace or Gumtree, usually using fake profiles and often through third parties,” he said.
“Buyers need to be cautious and this initiative will give them better access to good information to help them make the best decisions.”