Aug 282015
 

hpi - EU to Outlaw Mileage Correction FirmsCar buyers have to wait until 2018 before they are protected from criminal behaviour. HPI, provider of the HPI Check®, reports that dealers firmly back proposals by the EU to introduce legislation to outlaw mileage correction firms by May 2018. The findings of a survey to HPI’s dealer community reported that 71% support the EU decision.

A further 92% of those surveyed went on to declare that dealers, who are actively adjusting odometers without declaring the act to buyers, should be sought out and prosecuted. The rising support by used car traders to address the issue of clocking follows industry calls to the Government to regulate the registering of mileages adjustments, as well as introducing more mandated occurrences of when mileage information should be collected and recorded.

Neil Hodson, Managing Director for HPI, explains, “It’s clear from our survey, that most dealers are eager to see stricter measures be put in place to tackle clocking, beyond outlawing mileage correction firms. Interestingly, 93% of dealers we surveyed said they have never had cause to adjust or correct a car’s mileage, confirming that fraud is driving this activity. The risks to traders and consumers alike are significant. A dealer who unwittingly buys and sells on a clocked car could face hefty fines and prosecution, not to mention damaging their reputation.”

Sue Robinson of the RMI adds, “We completely agree that there is a need for legislation to tackle the issue of mileage adjustment, better known as ‘clocking’. This issue is detrimental to reputable vehicle dealers and consumers alike. The Government needs to send a clear message that this behaviour is unacceptable and legislation must be changed to prevent clocking.”

Concludes Neil Hodson: “Currently, criminals out to make a fast profit can hide behind the label of legitimacy that mileage correction firms provide. Closing these firms down will ultimately reduce the number of clocked vehicles on the UK’s roads, but the changes in law are some way off and more needs to be done now to send a clear message to fraudsters that the net is closing in on them.”

Mar 252015
 

odometerReducing the mileage of a Ford Fiesta, the bestselling vehicle in the UK in 2014, from 90,000 to 30,000 adds £1,875 to the price tag, up 35%*

Range Rover Evoque sees the price tag increase by £4,250 after clocking, an increase of nearly 20%*

The popular VW Golf rises by nearly 40% and the Nissan Leaf electric car sees a rise of 36%*

Sportier models, such as the Mazda MX 5 convertible see their values increase by 36% after clocking, whilst the prestigious Audi A3 could see its price tag rise by 30%*

*all of the above figures are based on reducing its mileage from 90,000 to 30,000 miles

Clocking continues to pose a real threat for used car buyers, including dealers and their customers, warns HPI. To highlight this, HPI has joined forces with CAP Automotive, the premier provider of vehicle values, to lift the lid on just how much dodgy sellers stand to make from a clocked car, conning dealers out of profit and risking both their reputation and legal repercussions.

Neil Hodson, Managing Director of HPI comments, “According to the latest SMMT figures, the Ford Fiesta was the bestselling vehicle in the UK in 2014, with 131,254 new car sales made. However, according to CAP figures, fraudsters are increasingly cashing in on the popularity of the family car, with clocked models potentially earning them up to 35% on the price tag. That means unsuspecting used car buyers could lose £1,875 on a vehicle with an altered mileage.

“The CAP figures show that, perhaps surprisingly, it is the lower value vehicles that see the biggest percentage increase from mileage correction, making them more attractive to fraudsters. For example, hatchbacks like the VW Golf can garner a whopping 40% profit for clockers who fraudulently take 60,000 miles off the clock. The result is an extra £3,000 which comes straight out of an unlucky buyer’s wallet.”

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