Suspected odometer fraud- insurance issue

[red1994]

Hi, I bought a 1994 Celica ZR for $4600. I'm pretty sure the odometer has been tampered with (only realised after purchasing, my bad). I would like to chance it and keep the car so what I would like to ask you guys is, if the odometer has been tampered with and I get into an accident, will I have problems with the claims? How bout in the case of a serious accident/hail etc and the car is damaged really bad- will I be able to get a write-off? Other than if I sell it off, what are the situations that a wound-down odometer can affect me adversely?

Any particular insurance companies to suggest in this case too?

Thank you! First time (dumb) car owner.

hmmm for curiosity's sake, how much is a manual 1994 celica worth if say it has done 350000-400000km? That's my rough true estimate. The exterior looks really good, runs well so far but then I've only got it for a few days so who knows right.

[Guest]

What makes you think the ODO was changed?

Don't take this as gospel, but the ODO reading has never been a factor in any insurance claim I have ever made.

redbook.com.au is a good place to find used car values.

[Steven]

Your best bet is to let your insurance company know if you're concerned.

On the other hand, you only have to disclose information to you would be expected to know - you don't know for sure it has been altered, and if it were ever raised the insurance company would have to prove on the balance of probabilities that you were aware of it and did not inform them. If you changed it yourself its pretty easy to prove as the reading at time of claim would be lower than at the time you bought it (I believe it's recorded on the change of ownership forms)

[red1994]

Thank you for the replies. The logbook entries show much higher mileage than what the odometer shows. Is there another possibility that can result in that, e.g. engine change? Still looking around for comprehensive insurance covers, thinking of SGIO cos heard it is easier to claim. Just in case. I hope to keep the car for as long as possible though, so hoping even if it has really done a lot of mileage it will still last.

The mileage was not written in the transfer form Steven.

Edited July 6, 2012 by red1994

[Steven]

All vehicles I have ever bought the odometer was on the form (ie receipt, statement of ownership etc) I received from the seller. Obviously that's not a universal thing, but it's also possible the seller has tried to trick you.

Changing the engine or anything is not grounds for changing the odometer- the only legal method is to change the entire cluster, but even then I think there might be a legal requirement to have the cluster corrected to show the true reading.

Have you tried contacting the seller to query this difference?

[u54mot]

The car may have been serviced at time intervals, as opposed to odometer readings. If so, the log book would have been stamped every time it was serviced, which I would think would be at yearly intervals, hence it is most likely that your log book was stamped at least 18 times (if serviced every 6 months, then could've been stamped 36 times) When a log book is stamped, the next page is stamped regardless of what that page reads.

If it was stamped 36 times, it may lead you to think the car has done 360 000kms.

If it was serviced at time intervals, then you have nothing to worry about.

[red1994]

I asked the seller he said he changed the odometer together with the engine as there was a problem with it. The log book was not very 'well-filled-up' actually, only stamps for the first 100,000km and then random stamps for 200,000+ after that.

[Ozzcaddy]

If your so concerned and want peace of mind, use the Freedom of Information, see if you can obtain copies of the previous inspection reports for that vehicle from the respective State Government Department that registers motor vehicles. Inspection reports will have the odometer reading.