Question

True or False

If a dealer knows the odometer of a vehicle is inaccurate, and cannot provide any indication of what the true milage might be, they must write on the contract "TMU" (Which stands for "true milage unknown"

Answer 1

In the automotive sales industry, it is indeed true that a dealer must write "TMU" for "true mileage unknown" on the contract if the odometer reading is inaccurate and the true mileage cannot be determined. This affects the selling price of the vehicle.

Step-by-step explanation:

The question about whether a dealer must write "TMU" on a contract if they know the vehicle's odometer is inaccurate is related to the practices within the automotive sales industry, which falls under Business. The statement is True. If a dealer is aware that the odometer is not reflecting the true mileage of the vehicle and cannot ascertain the actual miles traveled, they are required to indicate "TMU" for "true mileage unknown". This disclosure is critical as it affects the valuation and the selling price of the vehicle. The more problems the sellers disclose, typically, the lower the car's selling price. Marvin should be aware that overall, the price of a used car incorporates the information about its condition and history, even when some of that information reflects imperfections or uncertainties.