NHTSA odometer disclosure rule revisions effective JAN. 1

As of Jan. 1, dealers in every state must provide odometer disclosures for MY 2011 vehicles.

The primary focus of a rule the National Highway Traffic Safety Administration (NHTSA) announced in 2019 was how to electronically make the odometer disclosures federal law requires in conjunction with most used-vehicle transfers (sales, leases, auctions, etc.). The rule set out minimum e-odometer security and authentication criteria consistent with state-issued paper odometer disclosure documents. To date, only a few titling jurisdictions have conformed with NHTSA’s e-odometer requirements.

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The rule also amended the “older vehicle” odometer disclosure exemption. In 2020, used motor vehicles 10 model years (MYs) and older are exempt from the federal odometer disclosure mandates. Starting Jan. 1, 2021, an additional MY will become subject to the disclosure mandates each year until a full 20 MYs are covered. In other words, starting on Jan. 1, 2021, MY 2011 motor vehicles are no longer exempt and, in 2031, only motor vehicles 20 years old or older will be exempt. 

Unfortunately, not every jurisdiction has changed its laws, documents and procedures to meet the Jan. 1, 2021, deadline. NADA understands that the following states will not conform to the revised older-motor-vehicle exemption on Jan. 1 (all intend to do so by Jan. 1, 2022):

  • Alaska
  • Delaware
  • Oregon
  • Missouri
  • Montana
  • Vermont
  • Washington State

Nonetheless, it is important for dealers in every state to obtain and provide odometer disclosures for MY 2011 motor vehicles starting on Jan. 1, 2021. 

Of concern is whether odometer readings will be recorded on the face of new titles issued by the above seven states for MY 2011 motor vehicles; and if not, and if those MY 2011 motor vehicles are subsequently transferred out of state, what their new titles will reflect on their face. For example, will new titles to be issued with “true mileage unknown (TMU)” in lieu of actual odometer readings? 

Detailed information regarding the federal odometer law is found in a newly issued revision to NADA’s Dealer Guide to the Federal Odometer LawQuestions on the federal odometer law and NHTSA’s rules can be directed to regulatoryaffairs@nada.org.

Sourced from: nada.org