What Are the Penalties for Car Dealership Odometer Fraud in Mississippi?

When shopping for a used car, one of the most important factors is the vehicle’s mileage. Lower miles generally mean less wear and tear, better condition, and a higher value. But what happens when those miles aren’t accurate? What if the odometer has been deliberately rolled back to deceive buyers?

This illegal practice is known as odometer fraud—and it’s a bigger problem than many realize. The National Highway Traffic Safety Administration (NHTSA) estimates that odometer tampering costs American car buyers more than $1 billion annually. And unfortunately, some car dealerships are among the worst offenders.

Understanding Odometer Fraud

Odometer fraud is the illegal practice of altering a vehicle’s odometer to show fewer miles than the car has actually traveled. This is usually done to make the vehicle appear more valuable and sell it at a higher price to unsuspecting buyers.

Some common odometer fraud tactics include:

• Physically rolling back the digits on a mechanical odometer
• Hacking a digital odometer to change the mileage readout
• Replacing the instrument cluster entirely with one showing lower miles
• Falsifying service records and vehicle history reports to hide actual mileage

Odometer tampering is prohibited under both federal and state laws. The Federal Odometer Act requires sellers to disclose a vehicle’s actual mileage in writing at the time of sale. Any person or business who violates this law with intent to defraud faces serious criminal penalties.

Odometer Fraud Penalties in Mississippi

In Mississippi, odometer fraud is a felony offense. Under state law, it is illegal to:

1. Disconnect, reset, or alter the odometer of any motor vehicle with intent to change the mileage registered by the odometer
2. Operate a motor vehicle on any street or highway knowing that the odometer is disconnected or nonfunctional (except while getting it repaired)
3. Sell or use any device that causes an odometer to register miles that the vehicle has not actually traveled

Violating these laws is punishable by up to 5 years in prison and/or a fine of up to $5,000 per offense. And if the fraud impacts multiple vehicles, each one can be charged as a separate violation—quickly multiplying potential jail time and monetary penalties.

Additionally, anyone who commits odometer fraud may also face federal charges under the Odometer Act. Federal odometer tampering is punishable by up to 3 years in prison and/or fines of up to $10,000 per offense.

Enforcement Against Odometer Fraud in Mississippi

The state of Mississippi takes odometer fraud very seriously, with both state and federal authorities actively pursuing cases. Instead of focusing on individual incidents, here’s how enforcement efforts work:

• The Mississippi Attorney General’s Consumer Protection Division coordinates with federal agencies to investigate suspected odometer tampering schemes.
• Multi-vehicle fraud operations typically trigger joint investigations between state prosecutors and the National Highway Traffic Safety Administration’s Odometer Fraud Unit.
• When dealerships are implicated, investigations often expand to uncover title washing, warranty fraud, and financing misrepresentations that frequently accompany odometer schemes.
• Law enforcement uses sophisticated forensic techniques to detect digital tampering, including analysis of electronic control modules that independently record mileage data.

How Dealership Fraud Schemes Typically Work

Most organized odometer fraud operations follow similar patterns:

• Dealers purchase high-mileage vehicles (typically with 150,000+ miles) at wholesale auctions at prices reflecting their worn condition.
• They arrange for the digital odometer displays to be reprogrammed or have the instrument clusters physically replaced.
• Title documents are falsified or “washed” through multiple states to obtain clean titles showing the fraudulent lower mileage.
• The vehicles are reconditioned cosmetically but rarely receive proper mechanical refurbishment appropriate for their actual mileage.
• The tampered vehicles are then sold at substantial markups, often to buyers with limited financial resources who can least afford unexpected repair costs.

When detected, these schemes often implicate multiple employees and sometimes span several dealership locations, reflecting the organized nature of this form of fraud.

If you suspect you’ve purchased a vehicle with a tampered odometer, contact an attorney familiar with consumer protection laws to understand your options for seeking compensation.

Protecting Yourself from Odometer Fraud

Odometer fraud is a serious crime that leaves many victims in its wake. Consumers end up overpaying for worn out cars, while dealerships pocket ill-gotten profits. So how can you avoid becoming a victim? Some tips:

• Get a vehicle history report. While not foolproof, services like Carfax can reveal odometer discrepancies and past ownership concerns.
• Look for odometer tampering signs. Missing screws, scratches near the gauge cluster, or mismatched digital and mechanical odometer readings are red flags.
• Compare the mileage to the condition. A vehicle with suspiciously low miles but significant interior wear or a tired suspension may be a rollback.
• Beware prices that seem “too good to be true.” If one dealer’s price is thousands less than comparable cars, there may be odometer shenanigans involved.
• Trust your gut. If something feels “off” about the dealer, vehicle history, or odometer reading, walk away. Your instincts are often right.

Consult an Auto Fraud Lawyer

Unfortunately, even the most diligent used car buyers can still fall victim to odometer fraud by unscrupulous dealers. If you suspect you’ve purchased a vehicle with a rolled-back odometer in Mississippi, know that you have legal recourse.

The auto fraud attorneys at Ware Law Firm have deep experience handling auto fraud and odometer rollback claims. We work tirelessly to hold dishonest car dealers accountable and fight for the compensation victims deserve.

If you believe you have an odometer fraud case, contact us for a free consultation. We’ll listen to your story, advise you of your rights, and help you explore your options for seeking justice. With skill and determination, our team will work to make you whole again. Don’t let odometer fraud crooks get away with their crimes—call Ware Law Firm and take a stand today.