What's the news?
The EU is working on legislation that would see the process of 'clocking', or turning back the mileage of a car to sell it for more money, criminalised across the Union. It's already a criminal offence in Ireland (but only in five other EU countries), thanks in part to the work of Cartell.ie, which was welcomed the news coming from Brussels.
"The findings by the MEPs confirm Cartell's recent results that vehicle's imported carry a higher likelihood of having been clocked. At 11 per cent in Ireland our domestic clocking rate is at the higher end of the scale in respect of European standards - across Europe 5 to 12 per cent of vehicle's are clocked at home. Cartell lobbied successfully for introduction of legislation criminalising this practice so we are keenly aware of its importance" said John Byrne of Cartell.
"50% of second-hand cars traded in the EU have had their mileage rolled back on, with the price of vehicles fraudulently increasing by €2,000-€5,000 on average," said Brian Hayes, Fine Gael MEP for Dublin. "This practice has impacted particularly on sales of imported used cars, with a staggering 30% to 50% of these vehicles presenting with odometers which have been tampered with. Within individual countries around the EU member states, 5% to 12% of second hand vehicles sold have altered mileage readings. I think most Irish motorists would be shocked at these figures, particularly as cross-border car purchases are now so popular.
"This fraud is costing an estimated €5.6-€9.6 billion a year to consumers, second-hand car dealers, leasing companies, insurers and manufacturers. Consumers not only pay too much for their vehicles, but are often faced with unexpected maintenance and repair expenses for overused cars. There are also harmful environmental consequences as these cars are often more polluting and road safety is compromised by potentially hazardous vehicles."
If the MEPs' proposals are accepted and enacted by the EU Commission (and that's very likely) then not only will clocking be a criminal offence in all 27 member states (or 28, depending on what happens with brexit) but the legislation will also contain a requirement for national mileage data registers, to be made accessible across borders. Buyers of a used car should be able to verify the accuracy of its odometer reading, regardless of the EU country in which it was previously registered. On top of which, registering the odometer readings should be mandatory at each periodic technical inspection, each inspection, service, maintenance operation and repair carried out, and at every other garage visit, starting with the vehicle's first registration, MEPs say.
According to research presented during the debate on the matter in the European Parliament, in Belgium and the Netherlands, where readings are collected more frequently than elsewhere, odometer fraud has been almost eradicated.
German MEP Ismail Ertug said that: "We had broad agreement on this report and in particular on the need for national odometer databases with cross-border data exchange and for manufacturers to step up their efforts on odometer security. If the EU Commission turns our recommendations into draft laws, it could provide an annual benefit of six to nine billion euros and restore consumers' trust in the used car market, while also contributing to road safety. This is a great opportunity to demonstrate true European added value by protecting consumers."