Twist and turn: a third of used cars are sold with modified mileage

Russian dealers have taken the initiative to introduce a complete digital history of each car. This will protect customers from purchasing a car with technical or legal problems. These and other measures to whitewash the Russian automotive market were discussed at a round table in the Public Chamber. Details can be found in the Izvestia article.

The "gray" zone of the car market

Currently, about 30% of cars on the secondary market have a "twisted" mileage, and about 35% of sellers hide from buyers that the car has been in an accident or has some technical problems. This was announced by Alexey Podshchekoldin, President of the Association of Russian Automobile Dealers (ROAD), at a round table held at the Civic Chamber of the Russian Federation. According to the association's calculations, the annual damage to buyers from such frauds in the form of overpayments for the problematic cars they purchase amounts to more than 635 billion rubles. The introduction of a digital vehicle history would make the used car market more open and civilized, according to ROAD.

— Over the course of its life, a car in Russia changes, as a rule, 3-5 owners. However, none of them reliably knows the entire history of the car. Moreover, even dealers often do not know this. There are examples of car dealerships putting up for sale a used car, which, as it turned out later, was under arrest for the debts of the previous owner. According to our data, about 5% of cars on the secondary market have some kind of legal restrictions: they are on bail or under arrest, they are wanted, etc., — said Alexey Podshchekoldin.

Photo: IZVESTIA/Anna Selina

ROAD offers to digitally trace the entire history of both domestic and imported cars, from production to recycling. To do this, the association considers it necessary to supplement the electronic passport of the vehicle (EPTS) with a number of additional parameters and data.

In particular, we are talking about the odometer readings at each visit to the technical center, the work that was performed at the service station, and the price for each purchase and sale agreement. The ROAD also proposes to record in the EPTS the accidents in which the car was involved, indicating the nature of the damage received, information about the date of introduction and removal of various restrictions and encumbrances (bail, arrest, search, prohibition of registration actions, etc.). The final records in this document should be data on the disposal of the car, indicating the organization that processed the vehicle.

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Your passport is ready

The electronic PTC replaced the paper one in 2020. At the moment, about 15 million of these digital documents have been issued, said Ilya Minkin, CEO of Electronic Passport JSC. Thus, about a quarter of all cars in our country have EPTS, he noted.

According to him, the advent of EPTS has significantly reduced the severity of the problems associated with the supply of so—called saws and "constructors" to Russia - disassembled machines imported under the guise of spare parts. It also helps to combat fraud in vehicle certification, especially in terms of underestimating engine power or vehicle weight. The EPTS also makes the payment of customs duties and disposal fees more transparent, the head of the Electronic Passport noted.

Photo: IZVESTIA/Dmitry Korotaev

"We support the initiative to create an electronic history of each car, and we are ready for further cooperation and modifications of the digital system," Ilya Minkin said during the round table.

Data for the state

The appearance of a complete digital history of all vehicles will not only make the purchase of a used car more transparent and safer, but will also provide the state with the data necessary for developing and making decisions in the field of transport policy and improving road safety, Alexey Podshchekoldin believes.

— Now no one can reliably say how many trucks in Russia, for example, with a mileage of more than a million kilometers. If the odometer data is indicated in the EPTS, it will not be difficult to find out. Thus, with the availability of data on all cars in the country and their parameters, the state will receive full information about which segments of the fleet are in urgent need of updating, how much gasoline and diesel fuel are needed in a particular region, and what capacities are required for the development of electric charging stations," said the head of the ROAD.

Photo: IZVESTIA/Sergey Lantyukhov

The aging fleet is one of the problems affecting road safety, the head of the Scientific Center for Road Safety said at the round table Russian Interior Ministry Police Colonel Dmitry Mitroshin. He noted that cars older than 15 years make up about 40% of the Russian fleet. At the same time, "age-related" models, due to their design, are less safe than modern cars, which are equipped with various active and passive safety systems, said the head of the NC BDD.

Current data on the mileage and technical condition of the car will also be useful to insurance companies, according to the Russian Union of Motor Insurers (RSA). According to Ekaterina Grineva, head of the RSA's Loss Settlement Methodology department, insurers will be able to generate more up-to-date cost of CTP and CASCO policies based on them.

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Car Market Civilization

The development of EPTS capabilities and the formation of a transparent digital history of the car is the foundation for a civilized car market in our country, said Valery Soldunov, a member of the Public Board, a member of the Public Council under the Ministry of Transport of the Russian Federation, Chairman of the All—Russian Society of Motorists. In his opinion, these measures will increase confidence in transactions when buying a used car, force sellers to be more conscientious and will contribute to the renewal of the fleet.

Photo: IZVESTIA/Dmitry Korneev

— For the consumer, these measures primarily provide additional protection and transparency of the transaction. For businesses, equal opportunities and the opportunity to build good—faith relationships with customers. The government gets an accurate picture of the market and additional tools to improve road safety. After all, the more transparent the vehicle's history is, the easier and more effective it is to monitor the technical condition of the car and remove cars from the roads in time, the further operation of which poses a threat to road users," said Valery Soldunov.