A study conducted across 22 European countries and the United States by carVertical, an automotive data provider, examined how local governments and authorities tackle odometer fraud and the legislative measures they implement to combat this practice.

Countries vary significantly in their approach to dealing with odometer rollback fraud: some lack any relevant legislation, while others, like France, can impose fines up to 300,000 euros on perpetrators. In Croatia, offenders can face up to 8 years in prison for such violations.

For instance, in Latvia, the fine for tampering with mileage whether increasing or decreasing it is a mere 100 euros for individuals and 1,000 euros for legal entities.

Despite Being a Crime, It Does Not Deter Fraudsters

Regarding the legal regulations against odometer fraud in Hungary, culprits can receive up to a year in prison. However, the final court decision depends on many factors, often resulting in culprits evading severe punishment. This issue is not unique to Hungary but is common in other countries as well.

In neighboring Slovakia, local authorities can impose fines ranging between 5,000 and 50,000 euros on anyone dealing in odometer fraud. Moreover, violators could face up to two years in prison.

Although Croatian law does not explicitly mention odometer manipulation, it is considered fraud in practice, with perpetrators receiving six months to five years in prison.

Despite these regulations, they fail to prevent offenders from committing these crimes: odometer rollback affects 6.1% of cars in Hungary, 4.5% in Slovakia, and 3.5% in Croatia, indicating that current regulations do not deter criminals from committing mileage fraud. Latvia tops the list with 12.9% of checked cars showing manipulated mileage, with no legal actions initiated since 2020.

Assuming authorities impose a 3,000-euro fine for every case of odometer rollback and successfully prosecute the owners of the affected vehicles, Hungary could collect up to 151 million euros annually, according to the vehicle history report company.

"A successful precedent would likely reduce the fraud rate, which is crucial for the used car market. Every country needs to set an example in matters affecting the transparency of the used car market," Matas Buzelis, an auto industry expert and communications director at carVertical, told Index.

Odometer fraud not only harms the state but also unsuspecting buyers. Those who purchase cars with manipulated mileage usually pay at least 20% more than the vehicle's real value. According to the study, financial losses for deceived buyers in Hungary could surpass 129.4 million euros.

Need for Uniform Legislation

Although most of the countries surveyed impose fines or even prison sentences for odometer fraud, they do not always take this crime seriously. In Poland, fraudsters can receive up to 5 years, whereas in the Czech Republic, Lithuania, France, Spain, Italy, and Germany, sentences can range from one to three and a half years.

However, these are maximum penalties often not enforced fines are much more common. Stricter laws do not necessarily equate to fewer cases of fraud, as mileage tampering is also a regional issue: it is more prevalent in Eastern Europe due to lower incomes and a higher number of imported cars.

"There is no uniform legislation against odometer fraud. A long-term solution would be to apply uniform laws to all EU member states' citizens in cases of fraud. Currently, some countries do not take the issue as seriously as others, facing a paradox that global organizations must confront," Buzelis stated.

Tracking and Stopping Fraud is Not Easy

While odometer tampering is technically illegal in many countries, proving such cases can be challenging. Cross-border transactions create an environment with information asymmetry between car buyers and sellers, allowing vehicles to be registered in one country and then sold with falsified mileage in another.

In Hungary, for example, a violator was fined 630 euros for decreasing a vehicle's mileage by 500,000 kilometers a sum incomparable to the financial loss suffered when purchasing a car with such falsified mileage.

The Czech Republic tightened its legislation in 2018, but has yet to convict a single fraudster.

Since national laws often do not protect citizens' rights adequately, buyers are advised to always check a vehicle's history before purchasing a used car. Otherwise, they risk becoming one of the thousands of victims of odometer fraud across Europe.