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Federal Odometer Disclosure Regulation Change

Legislative News

Federal Odometer Disclosure Regulation Change

On October 2, 2019, the National Highway Traffic Safety Administration (NHTSA) issued a final rule on Odometer Disclosure Requirements.

The final rule amends 49 CFR 580.17. This means that a transferor or lessee must disclose odometer mileage for an expanded number of years for vehicles required to disclose milage upon the transfer of ownership. This extends beyond the previous exemption for vehicles with a model year of ten years to twenty years.

Federal Timeline
While the original final rule included a 2020 implementation deadline, NHTSA adjusted that date to January 1, 2021. This will not affect Montana immediately in January.

Staggered Implementation
Montana MVD will propose legislation to change the 10-year exemption to the updated 20-year exemption. Until proposed legislation is passed and implemented, an interim process will be used and is outlined below. 

Moving Forward
Interim Odometer Collection Process:

  • Business Partners: If you get an Odometer Disclosure for a vehicle greater than 10 years and less than 20 years old, record it in MERLIN, if you do not get a reading for vehicles that greater than 10 years and less than 20 years old do not reject.
  • Montana Licensed Dealers: To prepare for the upcoming change Odometer Disclosures should be obtained for all vehicles less than 20 years old. Getting in the habit early will decrease rejections when the statute is revised and implemented.
  • Continue to require Odometer Disclosures for vehicles less than 10 years old.

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