NHTSA Odometer Exemption Rule Change Now in Effect

A NHTSA rule issued in 2019 has now taken full effect; one noteworthy part of the rule is an amendment to the definition of an “older vehicle” as it applies to exemptions from the federal odometer disclosure mandate. Over the next decade, the exemption will eventually only apply to vehicles 20 years or older, as opposed to the prior 10-year rule.

Beginning on January 1, vehicles from model year 2011 are no longer exempt from this mandate; over the next 10 years, an additional model year will lose exemption, through 2031. This means vehicles from MY2011 will not be exempt until 2031.

Our friends at NADA have updated their helpful guide to the federal odometer law, which has been updated with NHTSA’s now-implemented rule. Please note that the rule also makes it much easier for states to implement electronic reporting options for dealers to comply with the odometer law.

Please direct questions on the federal odometer law to NADA’s regulatory affairs department at regulatoryaffairs@nada.org.

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