Buying or selling a vehicle privately is something that many people will do at least once in their lives. Most people understand the need to complete an auto bill of sale when buying a vehicle, it is also also necessary to protect yourself when you are selling your car privately.
The term odometer fraud refers to the practice of rolling back the odometer so that the vehicle appears to have covered fewer miles than it truly has. This is done to obtain a higher price for the vehicle on resale. It is estimated that over half a million automobiles are sold each year in the US with odometer readings that are falsified.
An all too common scenario is as follows. A vehicle is purchased privately and an auto bill of sale form is not used. The new owner rolls back the odometer and then re-sells the car for a higher price than they bought it for. At a later time the fraud is discovered and all previous owners of the vehicle are questioned to discover at what point the crime occurred.
The easiest way to record the odometer reading at the time of sale is to use an auto bill of sale. Without one, the original owner, even though they may know what the odometer reading was at the time of sale, will have a difficult time proving that was the case.
It is highly recommended that anyone offering their car for sale privately should utilize an auto bill of sale form with the following details. It must have both names of the buyer and seller. It must have the year, make and model of the vehicle being sold. It must include the price at which the vehicle was sold. It needs to state the odometer reading and the VIN. Lastly it should be dated and signed by both parties.
In order to avoid any problems and to protect yourself from becoming involved in odometer fraud, always complete a bill of sale form when you plan to sell your vehicle privately.