“How can we ensure we accurately disclose the true distance a vehicle has travelled?”

Go get the number!

The Motor Vehicle Dealers Act requires dealers to disclose the true distance a vehicle has travelled in writing on the bill of sale. The margin of error allowed is the lesser of 5% or 1,000 kilometres.

The Best Practice

Establish a policy that requires staff to visually inspect a vehicle’s odometer when completing retail (and wholesale) contracts. Simply copying an odometer reading from the deal jacket or trade-in disclosure document will often provide inaccurate information. Remember, inaccurate odometer readings (false representations of the true distance travelled) can trigger a customer’s right to rescission and a full refund within 90 days of delivery.

Similarly, when drafting a new vehicle bill of sale for a vehicle that is in stock, copy the odometer reading from the actual vehicle. Do not use a standard mileage that is preprogrammed into the DMS.

Click here to learn more about rescission and the “Six Deadly Sins.”