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by Marsh Finance on Dec 14, 2022 12:09:06 PM
Mileage clocking is the deliberate alteration of a vehicle’s recorded mileage to make it appear less used, often to increase resale value or avoid finance and lease mileage charges.
Mileage clocking, also known as odometer fraud, is the act of intentionally altering a vehicle’s recorded mileage to make it appear less used than it really is. This is typically done to increase resale value or avoid excess mileage charges on finance or lease agreements. A practice once famously shown in Matilda, mileage clocking has become a major part of the used car industry, with an estimated 2.5 million cars having an altered mileage as of 2020.
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How Mileage Clocking Works
Mileage clocking can be carried out through digital tampering via the car’s OBD port, the use of mileage blockers, or manually winding back analogue odometers on older vehicles.
There are a few ways mileage clocking can occur.
- Digital tampering with the car’s OBD port (on-board diagnostics).
- Mileage blockers that stop the car recording miles whilst it’s moving.
- Analogue manipulation. On older cars, you can actually manually turn back the mileage (you might have seen this in Matilda!).
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Car Finance And Its Effect On Mileage Clocking
Mileage limits on PCP and PCH agreements can motivate some drivers to clock cars to avoid excess mileage charges, which constitutes finance fraud and can lead to cancellation of the agreement.
With the rise of car finance, car mileage has come under the microscope even more. Both personal contract purchase (PCP) and personal contract hire (PCH) deals have mileage limits agreed upon with the customer for a set period. Any miles driven past this limit will result in an increased charge. For those wanting to save money and still be able to go as far as they wish, car clocking provides an option to do this. We must stress that this practice is illegal and, if caught, will result in a minimum cancellation of the agreement. Car finance is on the rise, and mileage is a massive part of this means that some see car clocking as a chance to trick financers illegally.
The Negatives Of Car Clocking
Clocking can cause buyers to overpay for vehicles and unknowingly drive unsafe cars due to missed servicing, unreported defects, and inaccurate maintenance records.
According to Admiral, clocking costs motorists more than £800 million annually. Paying more for a car than you should is illegal and morally wrong, tricking someone into paying more for their dream car. At a time when the UK is in a cost-of-living crisis, tricking motorists into paying more is even more dangerous given the current climate. Car clocking can also be hazardous. Whenever a car is serviced or worked on, mileage is taken to keep track of any work on a vehicle. This is then kept on file and presented to any buyers. If mileage is tampered with, servicings and any issues may be missed or misreported, leaving a future buyer in a position where they are unaware of any problems on the car. This could result in a potentially catastrophic incident and is another reason mileage clocking should never happen. Removing the very measure of when a vehicle has been worked on will leave any future owners driving a car that may have missed MOTs, services, or worse, have significant defects that aren’t reported.
How To Spot A Clocked Car
Buyers can identify potential mileage clocking by checking MOT mileage history, reviewing service records, assessing interior wear, and using vehicle history checks.
You can check if a car has been illegally tampered with by:
- Checking MOT mileage history. Every time an MOT occurs, mileage is recorded.
- Interior wear. Does the car have interior wear that suggests it’s completed more miles than it says it has?
- Service records.
- Vehicle history checks.
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The Law On Mileage Clocking
Selling a clocked car without declaring the true mileage is a criminal offence, and mileage clocking linked to finance agreements is treated as fraud and subject to prosecution.
It is a criminal offence to sell a clocked car without declaring the true mileage.
Altering a vehicle’s mileage is not automatically illegal, but it becomes a criminal offence if the car is sold without disclosure or if it is done to commit fraud, such as avoiding finance mileage limits. If you are thinking about altering your car’s mileage, we advise you don’t. The practice is morally wrong and can place any future buyer of your vehicle in danger. If you are on finance, mileage clocking will actually count as finance fraud.
To summarise, mileage clocking is an illegal practice that can leave owners of tampered cars in danger and cost motorists over £800 million a year. Anyone caught selling a vehicle with an altered mileage will face prosecution. If you want to buy a car, always do your due diligence and check the Vehicle Identification Number (VIN) to see if it has been altered. Never buy a car without knowing the exact mileage, and make sure the seller declares it before any agreement is made.
By following these steps, you can avoid being caught out if your car has been clocked and you don’t even realise it.