An odometer disclosure statement is an essential requirement in selling a used vehicle when an owner decides to transfer a vehicle title and change ownership, according to DMV.org. Vehicle owners typically use the Odometer Disclosure Statement form provided by a state motor vehicle agency.
Before transferring a vehicle title, a person should first determine if the state requires an odometer disclosure document, states DMV.org. In some states, owners of vehicles age 10 years and above or weight below 16,000 pounds do not need to provide odometer disclosure statements. Besides using the state-provided form, a person may opt to create his own odometer disclosure statement or enter the mileage in the odometer reading part of the certificate of title.
The purpose of an odometer disclosure statement generally involves certifying the accurate odometer reading of a vehicle at the time of sale and identifying whether the mileage increases after several years or surpasses its mechanical limits, according to DMV.org. It also prevents vehicle owners from providing false mileage information and helps keep the car's genuine retail value once someone buys it.
Both the seller and buyer must sign an odometer disclosure document, notes DMV.org. Additionally, the buyer should send a copy of the statement to the state motor vehicle agency when submitting a title transfer application.