Experts Weigh in on Odometer Disclosure
Recently, some members contacted TIADA over their concerns when a few dealer management software systems eliminated the odometer disclosure form. Dealers were accustomed to having their customers sign the form as well as sign the title when delivering a vehicle.
The Texas Department of Motor Vehicles stopped publishing the odometer disclosure (form VTR 40) in 2011 and maintains the odometer disclosure must take place on the title unless a secure dealer reassignment form (VTR 41-A) is permitted. However, that is a secure numbered form and can only be obtained from the VTR regional service center. You should not load that form in your DMS and it cannot be download from the DMV website.
So, to address the questions from dealers, TIADA reached out to two attorneys who represent auto dealers; Susan White of Shackelford, Bowen, McKinley & Norton, LLP and Don Goud II with Johnson, Deluca, Kurisky & Gould, P.C. to ask if they recommend an odometer disclosure form be signed at the time of sale / transfer.
“The mileage is noted on the back of the title when the dealer takes assignment of the title. said White, Additionally, the mileage is noted on the title application when the vehicle is sold/transferred to the new owner. We are not aware of any requirement to maintain a separate odometer statement in the deal jacket, it is not a bad practice, as it can add an extra layer of protection in the event of a discrepancy over mileage.”
Don Gould confirmed, “Dealers are no longer required to use a separate odometer disclosure statement. Dealers can just use the odometer certification on the reverse side of the title when the dealer has possession of the title at the time of sale. When the title is in the hand of a lienholder, the dealer can use the secure power of attorney form and the secure dealer assignment for the odometer disclosure.”
So, it's a business decision. Dealers are not required to maintain an odometer disclosure form but if you are looking for an extra layer of protection you can always create one and have your customers sign the form. No matter what you decide, TIADA recommends you stay consistent with every customer transaction.