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The Silent Threat: Mileage Fraud And Its Impact On Your Dealership

Written by Marsh Finance | Nov 5, 2024 12:14:54 PM

Mileage fraud, a practice as old as the automobile itself, continues to plague the UK's used car market. This insidious act, often referred to as "clocking," involves tampering with a vehicle's odometer to conceal its true mileage. While it may seem like a minor issue, its consequences can be far-reaching, impacting your dealership's reputation, customer trust, and bottom line.

With an estimated 1.9 million used cars changing hands quarterly in the UK, data reveals that 2.1% of these vehicles have clocked mileage, which can increase a car's resale value by up to 25%. For buyers, this translates to the risk of overpaying and inheriting unexpected maintenance costs. Even nearly new vehicles aren’t immune: CarVertical’s analysis highlights that 1.89% of cars under five years old have been clocked, with certain brands showing higher incidences. KIAs, for example, lead with 9% of nearly new models affected, followed by Nissan and Dacia.

Popular models like Ford Transits and Skoda Octavias are frequent targets for odometer rollbacks, sometimes as high as 76,000 miles. Surprisingly, vehicles with higher mileages are even more susceptible, with nearly 5% of clocked cars exceeding 155,000 miles.

The High Cost of Mileage Fraud

  • Damaged Reputation: A single instance of mileage fraud can tarnish your dealership's reputation, leading to a loss of customer trust and future business.
  • Legal Liability: In the UK, knowingly selling a vehicle with a tampered odometer is a serious offense, punishable by hefty fines and potential imprisonment.
  • Financial Loss: Repurchasing a vehicle with a hidden history, dealing with warranty claims, and facing legal battles can drain your dealership's resources.

Safeguarding Your Dealership: A Proactive Approach

To protect your dealership from the risks of mileage fraud, consider these strategies

1. Partner With Reputable Vehicle History Check Providers: Utilise services like CarVertical to obtain comprehensive vehicle histories, including mileage discrepancies and accident reports.

2. Invest In Professional Vehicle Inspections: Conduct thorough inspections to identify signs of tampering, such as excessive wear and tear on specific components.

3. Train Your Staff: Equip your sales and service staff with the knowledge and skills to recognise potential signs of mileage fraud.

4. Implement Robust Quality Control Measures: Establish stringent quality control protocols to ensure that all vehicles undergo rigorous checks before being offered for sale.

5. Build Strong Relationships With Suppliers: Source vehicles from trusted suppliers with a proven track record of honesty and transparency.

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