Introduction
You are ready to sell your vehicle, but you have a problem – your odometer is broken. You might think it’s a minor issue, but in Canada, a broken odometer can lead to serious legal complications. A broken odometer does not just impact your car’s perceived value; it also creates ethical and legal issues. In provinces like Ontario, failing to inform a buyer of a broken odometer can have dramatic legal consequences.
There is a legal obligation that you must give odometer readings. Buyers rely heavily on accurate mileage to assess a car’s value and condition. Without that information, trust is gone, and sales will decrease. In addition, odometer tampering is still a concern, and tampering cases lead to massive fines and lawsuits. Therefore, you need to know your obligations and what happens when you sell a vehicle that has an odometer reading that is broken. Today, in this article, we are going to determine how to sell a car that has a broken odometer.
Legal Requirements for Selling a Car with a Broken Odometer
It is not illegal to sell a car with a faulty odometer in Canada, but there must be openness. For example, in Ontario, sellers are obliged under the Highway Traffic Act to reveal if they know anything is wrong with the odometer. Bypassing the disclosure of an inoperative odometer amounts to fraud, and the seller will face legal repercussions. This applies to any province, focusing on the need for candor in car sales.
Also Read: Scrap Car Removal Laws Across Canadian Provinces: What to Expect
How Does Odometer Condition Affect Vehicle Value?
If your car’s odometer is broken, it may greatly affect its resale value. Unknown mileage seems like a huge risk to buyers, and it will compel them to give you lower offers or reject the vehicle entirely. It is difficult to assess wear and tear without the mileage, and it is even more difficult to justify your asking price without accurate mileage.
If you are selling your vehicle to a scrap yard, then the condition of the odometer is much less important because for a scrap yard, the value comes from the weight of the vehicle and the parts, not the mileage. If repairing the odometer isn’t worth it, consider selling your vehicle for scrap. In this case, the odometer’s condition doesn’t significantly impact the value.
Steps to Take Before Selling
Before you put your car on the market, it’s a good idea to do a few things if the odometer is malfunctioning. By doing this, you can shield yourself from legal issues and make the buyer more at ease with the transaction. It also provides an equitable opportunity to clarify the car’s real condition and history. Here is what you need to do before selling a car with a faulty odometer.
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- Get Maintenance Records: Obtain all maintenance and service records that indicate the mileage of the vehicle at various points. The mileage can be used to estimate, thus can help buyers get a clearer understanding of your car’s history.
- Obtain a Vehicle History Report: Companies such as CARFAX Canada will provide a complete history of your vehicle, including historical odometer readings. This report can act as documentation of vehicle condition over time.
- Record the Odometer Problem: If you put on all ads and statements, in writing, that the odometer does not work, you may have done your due diligence. Make sure you note this on the bill of sale to protect yourself.
- Think About Fixing the Odometer: If you can, repairing the odometer will let you add that component of value to your vehicle and potentially add worth for your buyers. Get an estimate from a certified mechanic for fixing costs and the potential value increase.
Also Read: Should You Fix Your Car Before Scrapping It?
Selling Your Nearby Car Scrapyard
If it is not cost-effective to repair the odometer, selling your vehicle to your nearby car scrapyard is a viable option. Most car scrapyards determine the value of vehicles based on weight and the worth of recyclable content, not mileage. In Canada, several scrap yards take vehicles with shattered odometers. Before selling, remove personal items and have ownership documents ready.
Conclusion
Selling a car with a faulty odometer needs caution and honesty. Though it is legal, a lack of disclosure might result in severe penalties. Through the provision of maintenance records, getting a vehicle history report, and verbally informing the buyer of the odometer problem, you can ensure that your customers trust you. If repairing the odometer is not an option, selling the vehicle to a scrap yard provides an alternative avenue.
At Greenway Auto Recycling, we offer fair quotes and free same-day scrap car removal. Give our team a call at (416) 783-9026 to book your pickup and get paid without delay.
