Reducing odometer fraud in the EU second-hand passenger car market through technical solution

Przemysław Borkowski


One of the key issues while purchasing used car is viability of its odometer reading. Mileage incurred is basis for consumer decisions. European Union second-hand car markets score low in surveys in regard to their honesty and reliability. Evidence from around the world as well as from the EU suggests that odometer tampering is quite frequent practice. Thus dishonest sellers intercept difference in monetary value between odometer tampered and non-tampered car. For buyer there are hidden costs of depreciation and maintenance incurred but not revealed. In this paper the economic viability of one of the possible solutions to fight odometer fraud in regard to passenger cars is discussed. This solution is based on introduction of tamper-proof odometers into the market. The costs and benefits of such a move are estimated and pros and cons of the proposal are discussed. The estimates are produced for different scenarios of assumed odometer fraud levels. Regardless of the fraud level scenario considered the straight monetary benefits outweigh costs. However there are other issues which influence possible introduction of tamper-proof odometers like lasting of their effects or social and technical barriers to their adoption.
Author Przemysław Borkowski (FE/ChTE)
Przemysław Borkowski,,
- Deparment of Transport Economics
Publication size in sheets0.50
Book Sierpiński Grzegorz (eds.): Integration as solution for advanced smart urban transport systems: 15th Scientific and Technical Conference "Transport systems. Theory & practice 2018": selected papers, Advances in Intelligent Systems and Computing, no. 844, 2019, Springer, ISBN 978-3-319-99476-5, [978-3-319-99477-2], 279 p., DOI:10.1007/978-3-319-99477-2
Keywords in EnglishOdometer tampering, costs and benefits of tampering-proof odometers, reducing odometer fraud in the EU
Languageen angielski
Score (nominal)20
Score sourcepublisherList
ScoreMinisterial score = 20.0, 28-01-2020, ChapterFromConference
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