When you sell a car, one of the most important details the law and buyers care about is the mileage it has run. This is precisely why federal law requires an official odometer disclosure at the time of title transfer. And attaching it to your Bill of Sale offers additional clarity.
It’s a brief statement that’s typically paired with your Bill of Sale, confirming the validity of vehicle’s mileage at the time of sale. In 2021, the federal rules around these disclosures underwent a major update to protect consumers from odometer fraud involving older vehicles.
So if you’re selling a car today, it’s important to know what documents and disclosures you must include and how to do it correctly.
The 2021 Rule Change for Odometer Disclosures Explained
Before 2021, odometer disclosure was required only for vehicles less than 10 years old at the time of transfer. In January 2021, the National Highway Traffic Safety Administration (NHTSA) updated this rule, extending the requirement to 20 model years to help reduce fraud on older vehicles.
By this rule, vehicles are exempt from presenting a federal odometer disclosure at the time of transfer based on model year, calculated on a rolling January 1 basis. Effective January 1, 2021, vehicles that are 20 model years old or older are exempt.
For example, Model Year 2011 vehicles will require an odometer disclosure until January 1, 2031, while Model Year 2010 and older vehicles were governed by the prior 10-year rule and may already be exempt depending on the year of transfer.
So if you’re selling your car from 2011 or later today, you’re required by federal law to provide an odometer disclosure to the new owner. NHTSA allows states to use electronic odometer disclosures in addition to the traditional paper forms.
Who Must Disclose Vs. Who is Exempt
Federal law 49 CFR § 580.5 states that certain vehicles must include an odometer disclosure at the time of transfer, while others are exempt.
Here’s a quick breakdown:
Disclosure required
All passenger cars and light trucks, transferors or lessees, that are under 20 model years old at the time of sale must include an odometer statement. This applies starting with vehicles from model year 2011 and newer.
No disclosure required (exempt vehicles)
Annual transferors or lessees of the following vehicles do not have to provide an odometer disclosure statement:
- Vehicles with a Gross Vehicle Weight Rating (GVWR) over 16,000 pounds.
- Non-self-propelled vehicles, such as trailers or equipment lacking a motor.
- Vehicles that fall outside the 20-year window:
- Model year 2010 or older, sold at least 10 years after January 1 of that model year (e.g., in 2025, a 2010 car is exempt).
- Model year 2011 or newer, sold 20 years later (e.g., a 2011 vehicle becomes exempt starting January 1, 2031).
- A vehicle sold directly by the manufacturer to a U.S. government agency under contractual terms.
- A new vehicle that hasn’t had its first transfer yet.
Exemption timeline – the roll-off rule
The exemption roll-off is basically how exemptions kick in year by year after the 2021 law change. So instead of all older cars suddenly being exempt at once, there’s a gradual roll-off:
Let me explain;
Every January 1, one additional model year crosses the 20-year line and “ages out”, becoming exempt from disclosure requirements. This gradual roll-off continues indefinitely, meaning you can easily figure out your vehicle’s exemption year by simply adding 20 to your model year.
This checks the federal age rule. Heavy vehicles >16,000 lbs GVWR or non self-propelled can be exempt for other reasons. State handling varies.
Bill of Sale Odometer Clause Vs. Odometer Disclosure Statement
The odometer clause in a vehicle bill of sale is just to record the mileage of the vehicle at the time of sale, for clarity of both buyer and seller. It’s not mandatory by law and doesn’t replace the required official disclosure, just complements it. By contrast, an Odometer Disclosure is a federally required statement that must be signed on the title or electronic reassignment (submission method depends on state procedures).
What to Write in Your Bill of Sale
To stay clear and compliant, your Bill of Sale should include an Odometer Clause or section. You can simply add the following block:
Odometer: At the time of transfer, the odometer reads ____ miles “no tenths”.
Check one that applies:
- Actual mileage to the best of the seller’s knowledge
- Mileage exceeds mechanical limits (older 5-digit odometer rolled over)
- Not actual mileage – WARNING: ODOMETER DISCREPANCY
If you’re drafting a bill of sale yourself, include the section above as a separate “Odometer” clause.
OR, you can download our free Vehicle Bill of Sale Template and use its pre-made Odometer Disclosure Statement to make things easy and quick.
What to Write in Your Odometer Disclosure Statement
Odometer disclosure forms are integrated into a vehicle’s title in many jurisdictions. If not, you can get it from the state’s Department of Motor Vehicles (DMV) or equivalent agency.
Filling out the Odometer Disclosure statement is mostly about being precise and following the federal format. Here’s how you do it:
Carefully record the odometer reading
Accurately write the mileage as it appears on the odometer – no tenths. Disclosing the actual reading is just as important as declaring the true sale price on a Bill of Sale.
Pick the right checkbox
Choose one of the required mileage statements:
- Actual mileage: Tick when reading matches the true miles to the best of the seller’s knowledge.
- Exceeds mechanical limits: Check this if the odometer is a 5-digit unit that rolled over its maximum count.
- Not actual mileage: Use if the reading is wrong due to tampering, a broken odometer, a cluster swap without proper set-forward, or if a km→mi conversion loses accuracy. The disclosure must include a warning.
If you’re in doubt about these, select Not actual and add a one-line explanation.
Sign and date
You, the seller, must sign and date the disclosure. The buyer only signs the odometer disclosure if the title or state form requires it, as signature rules vary by jurisdiction.
File electronically if required
After completing and signing the odometer disclosure statement, it must be submitted to the state’s DMV or equivalent agency as an integral part of the vehicle title transfer process. This is commonly done by mailing the documents, presenting them in person at a local office, or using an online portal.
If your state uses an e-title transfer system, follow the outline prompts. Federal rule §580.6 allows electronic odometer disclosures and e-signatures as long as:
- The system is secure and keeps records for at least five years
- Converted paper titles are kept on file or properly invalidated with proof
- Signatures clearly identify the individual signing (not a business)
- Paper copies are retained according to jurisdiction requirements
Keep a copy
Jurisdictions retain odometer disclosures for five years, including in e-title sales. Dealers and private sellers should follow state rules and keep copies for the record.
Common Pitfalls to Avoid
Some real-world mistakes to watch out for:
- Guessing or “rounding” mileage: Avoid writing the reading as “about 100k” or rounding off instead of the exact reading from the odometer. Both the federal and state rules require a precise number at the time of transfer.
- Leaving it blank: Some sellers skip the clause entirely, assuming that the separate odometer disclosure form covers it. But if the bill of sale has space, leaving it blank may cause suspicion or invalidate the document in some states.
- Not disclosing odometer issues: If your odometer is replaced, broken, or has “rolled over” (meaning it’s past 99,999 miles), state that clearly. If you don’t, it may be viewed as misrepresentation.
- Ticking the “Actual” checkbox after a cluster swap: If your odometer was replaced or tampered with, mark it “Not Actual – Odometer Discrepancy” in both the bill of sale and the disclosure.
- Marking a 2011+ car “exempt”: Vehicles from 2011 and newer will be exempt after 20 years. Don’t mark a 2011 vehicle as exempt in 2025.
Frequently Asked Questions
Are There Penalties for Lying on an Odometer Disclosure?
Yes. Federal law treats odometer fraud very seriously, with potential fines and even jail time. Buyers can also sue for damages if they later discover the mileage was misrepresented.
What if I’m Gifting a Vehicle Instead of Selling it?
You need an odometer disclosure even if the vehicle is within the covered model years and is a gift. The disclosure applies to transfers of ownership, not just sales.
Do Leased Vehicles Also Need Odometer Disclosures when Returned?
Yes! When a lease ends and ownership changes hands, the odometer disclosure rules apply, just as they do with a regular sale.
Summing Up What Changed and What to Write
Odometer disclosure rules may feel technical, but the new update actually made things easier to follow. The 2021 rule update stretched odometer disclosure rules to 20 years, with exemptions rolling off one model year at a time.
All you have to check is what your car’s model year is and its age to know if you’re exempt from an odometer disclosure or legally bound.
If you’re selling your car, remember that an odometer clause will add clarity to the sale but will never replace the official federal or state disclosure form. Both documents will protect the buyer, seller, and future title transfers.
