Odometer Fraud Hits Canada’s Used Car Market as More Than 20,000 Vehicles Flagged

By Tahani Elghazaly
Published May 15, 2026

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A new CARFAX Canada report has raised concerns about odometer fraud in the country’s used car market, after identifying more than 20,000 vehicles in 2025 with signs of rolled back or inconsistent mileage readings.

According to CARFAX Canada, 20,642 vehicles were flagged through Vehicle History Reports ordered in 2025. These reports showed odometer rollbacks or mileage patterns that may indicate the vehicle had been made to appear as if it had travelled less than it actually had.

The risk for buyers is serious. Odometer fraud does not simply change a number on the dashboard. It can make a vehicle appear newer, less worn and more valuable than it really is. A buyer may end up paying too much for a car and later face unexpected repairs, maintenance costs or safety concerns.

CARFAX Canada advises used car buyers to review the pattern of odometer readings in a vehicle history report and to have the vehicle inspected by a licensed mechanic. The condition of the tires, brakes, engine, interior and general wear should match the mileage shown on the dashboard.

The Government of Alberta explains that odometer fraud occurs when a vehicle’s current mileage reading is lower than a previous reading reported by a prior registered owner. While some discrepancies can result from data entry errors, they can also point to actual tampering, making record checks essential before purchase.

The warning is especially important for private online sales, where buyers may have less protection than they would when buying from a licensed dealer. Before purchasing a used vehicle, buyers should request the VIN, review ownership and service records, check for accident history and compare previous odometer readings.

Red flags include mileage that seems unusually low for the age of the vehicle, missing service records, or wear on the steering wheel, seats, pedals and interior that does not match the reported distance. CARFAX Canada notes that the average Canadian drives about 20,000 kilometres per year, which can help buyers judge whether a reading appears realistic.

The practical message is simple: do not rely on the odometer alone. Before buying a used car, get a vehicle history report, arrange an independent inspection, compare the vehicle’s condition with the reported mileage and walk away if the records do not make sense.

In a market where vehicle prices, insurance and repair costs remain high, a used car that looks like a bargain can become an expensive mistake if the mileage has been manipulated.