car with incorrect mileage

[vgrant]

Hi, I am thinking about buying a used car with 60k miles on the odometer but when the seller registered the car a couple years ago there was a clerical error and the mileage on the registration is 66K (instead of 56K). If I am to transfer the title to myself I will have to go with the incorrect mileage on my title (66K). It's not a problem with transferring the title nor with obtaining auto insurance for it, and I think I will be able to put on the miles in about a year to make the discrepancy go away. I'm not planning to sell or transfer the title any time soon. I don't think it's worth the hassle of going through the DMV to fix it.

But the one thing I think about is, what if god forbid before that time my car got totaled and I have to sign over the title and give it up to the insurance company? Would the discrepancy in mileage on the title be a problem then? I checked with the insurance agent and she assures me it's not a problem with coverage but I am not sure she's knowledgeable in the case of total loss.

I live in Florida and my auto insurance is with Allstate.

Any insight is highly appreciated!

 

[adjusterjack]

If I am to transfer the title to myself I will have to go with the incorrect mileage on my title (66K).

Not necessarily. You can insist that the seller get the error corrected and a new title issued before you hand over any money.

If he balks you have the option of walking away from the deal or accepting the erroneous title and whatever consequences that might befall you.

I know that a correction can be done by the seller because I was in the same situation a few years ago. I bought a car with 18,000 some miles on the odometer. When I examined the title, the title said 25,000 miles. The Carfax showed 15,875 miles in August 2007, 25,000 miles in December 2007, and 17,917 miles in 2012.

The seller explained that he sent his wife to the DMV to transfer the title into their trust in August 2007. She didn't have the car with her and when asked the then current mileage she took a wild guess and said 25,000.

I said no problem, just get the title corrected so we can conclude my purchase. He got it corrected, I bought the car, and I was even able to get Carfax to delete the 25,000 entry based on the corrected title.

A correction can be done and it's best you throw the problem back to the seller and let him "hassle" with it while he still owns the car. Otherwise, you're right, there could be a problem for you at some point.

 

[InsCommentary]

“I checked with the insurance agent and she assures me it's not a problem with coverage but I am not sure she's knowledgeable in the case of total loss.”

Get her assurance in writing.

 

[adjusterjack]

An odometer discrepancy would immediately be flagged as a suspicious claim and be referred to the Special Investigations Unit (SIU). Think Spanish Inquisition. SIU would run a background check on the insured, conduct an examination under oath (like a deposition) and carefully examine the insured's financials. Guaranteed to be a very unpleasant month for the insured while we ruled out a fraudulent claim.

Word to the wise. Seller gets the title fixed or walk away and let the seller find a fool willing to take the risk.