As much as possible: why do sellers have to adjust the mileage

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Buying a used car is always the main goal is to understand how "twisted" the mileage on the car. From the mileage depends on the condition of many components and assemblies of the car, representing the spending on maintenance and residual values car. Unfortunately, most of the cars sold twisted mileage. The law currently leaves it to the conscience of the owner not handling the moment. Although it depends on your car, cause a lot of car parts ranging from brake discs, pads and ending with units of ABS, have a certain resource that depends on the mileage.

They have

In other countries, the attitude to this question is much harder: for example, in Germany or Belgium, you can obtain the criminal term for a twisting run and a fine. Of course, some of this does not stop, but in General mileage cars in these countries is real.

In the USA there is no single register of insurance services, which recorded any operation of the car's registration and mileage data on accidents and injuries. Enterprising Americans have done in this business: for a small fee you can get this information "first hand". For twisting the mileage provides for liability as for forgery.

Why is everyone so

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The situation in the market of used cars is well illustrated by the "theory of the market for lemons" by George Akerlof. Completely this theory is called: "the Market for "lemons": quality uncertainty and the market mechanism". In short, the essence of the theory is that the buyer may not know the real quality of the product and is unable to define it in a short test, this information has only the seller, the price of goods in poor condition are much lower, but over time, a bad product will completely replace a good from the market.

Sellers of high quality goods will be in a situation when sales of the commodity "market price" simply will not have to make any sense of them, and sell bad goods much cheaper. In the end the whole market will move to trade a bad item and a new stage will begin already confrontation of "lemons" and "bitter lemons."

In my opinion, the analogy to the face. Those who sell car is in excellent condition and true mileage, just can't compete with those who "rigged "bucket" and twisted mileage. Moreover, cars with twisted mileage and in bad shape yourself in the eyes of the buyer better than a really good car, just because of the low qualification of the buyer and the eternal craving of mankind to be attached to objective numerical data for comparison.

The average car buyer a little versed in the technical features and the list of things it checks when buying, is extremely small.

First the buyer looks at the external condition, no visible damage, clean interior, Shine paint. Then the ability of a car to go without a smoke, extra sounds, beats and other clearly negative "effects". Then the year of release and mileage.

If you have ever been on a car, then you'll remember the rows of clean, shiny cars, "othersystem" salon, slightly polished, with paper mats "we will maintain the purity of your salon, and installed a cheap (but new) Chinese optics, grated "carnitines" rubber. And, of course, with small mileage, with stories of grandparents, who never went on the car, year of manufacture, which is sometimes at odds with those listed in the title for a year.

This is the essence of any system attempting to maximize profits: nice packaging bad product and try to adjust the data for which the buyer can hold on to. It doesn't matter in that serious defects are not even hidden body parts are not "family", uneven gaps, the traces of bad welds, oil streaks, etc.

The sellers of "lemons" are disguised as ordinary people who sell their cars. The situation comes to the absurd: the person selling the car in really good condition with real mileage, and reasonable, the appropriate year of production cars, can't sell it for a reasonable price. Buyers expect their deceived, and do not encourage honest sellers.

Analysis of the secondary market of cars

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If we analyze currently available in the sale of cars in the secondary market, it is possible to identify an interesting trend. Cars, released recently, have a maximum and minimum runs is much higher than the cars year of issue older. And, if you take a sample and analyze it, you will notice that this trend applies to all vehicles of the sample.

The reason is simple: the odometer shall be adjusted to a medium (according to seller) indicator. I usually try not to allow mileage above 60 thousand km for 3-year-old car and 100 thousand km in 5 year old cars – a kind of upper bound, which is clearly noticeable that the mileage corrected. But in the sample there are always cars with less mileage, sometimes unlikely at first glance and obviously adjusted the car as in these cases does not meet the stated mileage.

It gets worse: cars aged 10 – 20 years stubbornly kept runs about numbers 200 thousand km, in extreme cases - 250 thousand km. Those who have run the above, look in the "black sheep".

Why the sellers do

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Everything is simple, for many years the sellers are so used to cheating that seem to have forgotten that a modern car can "run" more than 200 thousand km without major repairs, they just do not want to take cars with mileage above 200k km.

5 year old car with mileage 150 thousand km is doomed – it will not buy, even in perfect condition. But the car of the same age with twisted mileage of 30 thousand km, they will leave instantly. If the mileage 350 thousand km of 10-year-old car, casual buyers will call or will lovers model, or bought that will cut the mileage and sell the car half as much.

No reasonable arguments on buyers not apply. Doesn't help that the average mileage in Russia no less than 15 thousand km per year, nor the fact that first and foremost you need to look at the condition of the car than the numbers on the odometer. Check in all services (although of these tests, you can write a memoir), the service book will not be able to convince the buyer. Magic numbers are stronger.

Even stronger is the fact that timely serviced and well maintained car with a mileage of 200 km, much safer than same with mileage less than half, but the repair of which no one seemed to care, focusing on the saying "goes, okay."

In this situation, even an honest seller look at the situation on the market, to spit on everything and will cut mileage because there is no way, adequate buyers are very few.

The operation pays for itself many times: a car with low mileage "flies" much faster. As for the guilt... what's the point to sell quality products cheap if others sell for this amount "corpse"? As a result, according to expert estimates, about 90% of the cars on the Russian secondary market are twisted, on average, 30% mileage.

What the law says

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It would seem that the most interested party in the elimination of a mechanism that spoils the market of secondhand cars, is the state itself and its controllers responsible for traffic safety and the Central Bank responsible for the insurance companies.

Car with a "rolled" the mileage in the assessment of road traffic accidents has a higher residual value component, which means for "twisting" run to the detriment of the insurance company. However, insurance companies don't seem to care – they only think about raising rates.

Why cut costs when you can just increase the flow of cash to the cashier?

However, the government on this issue is still working. So, the planned introduction of e-TCP, which can improve the situation with twisting runs. According to preliminary data, the number of parameters that will be required, will be information about the timing of IT – most likely, the data will be taken from UAIS diagnostic card. The system now contains information about the run.

In addition, in the electronic title can be included data on mileage at the time of the transaction of purchase and sale with the communication with the database of automobile dealers. Those, in turn, have long advocated for a single database supported cars as "lemons" undermine their business cars with a small mileage and is not visible to the eye problems take at least a small share of the market of new cars.

Author: Artem Grigorov

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