EU-wide study identifies mileage fraud as major threat to consumers Belgian Car-Pass model seen as best practice
CAR-PASS welcomes the publication of the European Commission’s “Study on the functioning of the market for second hand cars from a consumer perspective” in the European Union. This comprehensive EU-wide report was long overdue given that the second hand cars market has consistently scored the lowest in terms of consumer trust in the EU’s annual Consumer Markets Scoreboard. And one key reason for this lack of trust is the widespread problem of mileage fraud.
The new study looks at various deficiencies of the second hand cars market: after-sales problems, unfair commercial practices, limited information provided, etc. But mileage fraud was the second most commonly cited problem in the stakeholder survey conducted as part of the report, particularly in Eastern European countries. This is reflected also in the findings of the consumer survey, where reported cases of mileage fraud were much more prevalent in the new EU Member States or EU13 (14%) than in the old EU15 members (4%). However, the percentages could be under-reported as it might be the case that respondents might not be aware that the odometer of their car was tampered with.
Recent news
Annual report 2018 - Number of imported pre owned cars increases, so does the risk for odometer fraud.
In 2018, 819,345 Car-Pass documents were issued, 1 out of 10 for imported vehicles. The number of Car-Passes issued for imported vehicles has increased by 50% over the past 3 years. To counter odometer fraud with those vehicles, as from 1 January 2020, the manufacturers and importers must share the odometer readings registered in their central database with Car-Pass when a pre-owned vehicle is imported into Belgium.
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Buyers of used cars will be much better informed thanks to the new Car-Pass.
The Belgian Parliament has approved a modification of “the Car-Pass law”. Extra information will be added on the Car-Pass, to better inform buyers of used cars.
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European Parliament calls Commission to tackle odometer manipulation
The European Parliament approved with a vast majority a set of recommendations to the European Commission to crack down on odometer tampering of used vehicles. It pleads for technical requirements for vehicles to prevent odometers from being easily manipulated, but it also emphasises that all Member States should have national mileage registers and engage in cross-border exchange of data from those registers.
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Car-Pass annual report 2017
The figures in the annual report 2017 prove the efficiency of the Car-Pass system.
When buying a Belgian used car, the probability that the odometer has been rolled back is less than one out of 500. Since Car-Pass and the Dutch RDW have been exchanging mileage information, the number of fraud cases with imported cars from Holland, dropped with 42%. According to the EP, the introduction of a Car-Pass system in all EU Member States is the most efficient solution to deal with odometer fraud and could save European consumers EUR 8,51 billion per year.
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