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The Belgian Car-Pass system EReg Topic Group XIII Brussels – June 13, 2012

The Belgian Car-Pass system EReg Topic Group XIII Brussels – June 13, 2012. Content. Possible solutions to mileage fraud The Belgian CAR-PASS system Legal framework In practice Recording mileages only during PTI is not sufficient. Possible solutions. Technical solutions

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The Belgian Car-Pass system EReg Topic Group XIII Brussels – June 13, 2012

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  1. The Belgian Car-Pass systemEReg Topic Group XIII Brussels – June 13, 2012

  2. Content • Possible solutions to mileage fraud • The Belgian CAR-PASS system • Legal framework • In practice • Recording mileages only during PTI is not sufficient

  3. Possible solutions • Technical solutions • Non-existent today • Wide access to technical information (wanted by EU legislator) • Odometer fraud = hacking software • Very doubtful if technical solutions will ever be sufficient • Law enforcement • Mileage fraud is not considered a crime in every member state of the EU • Mileage fraud is difficult to prove, especially when the car has been imported • Also difficult to trace -> car has often been sold several times -> who did it? • Collecting mileages in a central database • Giving certainty to buyers • Adding transparency to the market • Discourages fraud

  4. The Belgian CAR-PASS system: legal framework • Legal framework (federal law of 11.6.2004) • Mileage fraud is considered a serious crime sanctioned with severe penalties (up to 1 year imprisonment) • Creation of a central database containing the odometer readings of all vehicles registered in Belgium • All professional car dealers and repair shops are required to transfer VIN number, mileage and date when repairing or maintaining a vehicle or replacing parts (ex. tyres, windscreens,…) • The seller of a second hand vehicle is obliged by law to deliver a certificate showing the mileage history of the vehicle to the buyer. If he fails to do so the transaction is void. • Supported by all stakeholders: consumers, automotive sector and government

  5. The Belgian CAR-PASS system: in practice • CAR-PASS is a non-profit organisation authorised by Royal Decree, to manage the central database with the mileage recordings • All stakeholders are represented in the CAR-PASS board: • Association of the car importers (FEBIAC) • Association of the dealers, repair shops, … (FEDERAUTO) • Association of the companies performing the technical inspection (GOCA) • Associations of motor car users (Touring, VAB) • Ministry of Economic Affairs • Ministry of Transport • Cost-efficient and self supporting. Sale of this mileage certificate (€ 6.70) is the only revenue for CAR-PASS. No public funding. • Almost no extra administrative burden since recording mileages is common practice in the automotive business

  6. MoT : Ministry of Transport PTI : Periodical Technical Inspection MoT First registrations Professionals 77 stations PTI VIN + km + date File transfer CAR-PASS certificates web CAR-PASS requests fax/mail New companies Min.Economy

  7. Unique ID No personal data shown on the document General data about the vehicle Mileage history In bold: date of issue and actual mileage

  8. The Belgian Car-Pass system : Facts & Figures • Database contains 6 million registered vehicles and 120 million odometer readings • Data inflow: >1 million new odometers readings per month • Monthly data providers: > 8.000 companies • CAR-PASS production: average 60.000 certificates issued per month • Staff: 8 As a result: • The Car-Pass model has proven it’s necessity in an effective way! • In 2011 only new 1312 cases of mileage fraud took place (< 0,20% of used cars registered in B). Before the introduction of the CAR-PASS system, 60.000 cases were observed (conservative estimation) • However, CAR-PASS does not cover imported/exported vehicles

  9. Recording mileages only during PTI is not sufficient to deal with mileage fraud • EU directive 2010/48 - frequency of the test: 3 - 4 years after the date of first use, then every two years • This is largely insufficient to deal effectively with mileage fraud: • Large majority of leasing cars are end of contract before the first PTI and can easily be sold with a manipulated odometer • the date of the PTI is known in advance; the odometer could have been manipulated in the run-up to a vehicle’s presentation to PTI • In Belgium only 33% of all mileage readings come from PTI • hard to check PTI data in the case of imports – buyer has no access to PTI information from country of previous registration • An effective system should be based on frequent odometer readings recorded by many independent sources

  10. CAR-PASS has received on average 8 mileage readings before a car has reached the age of 4 year (before the first PTI in Belgium )

  11. Typical mileage history Peugeot 807 – date first use : 19 November 2007

  12. Conclusions • Car-Pass system has proven to be very effective against mileage fraud and also very cost efficient • Success Factors • Consensus model between all stakeholders (authorities, industry and motorists • Legal framework making date transmission and delivering of the mileage certificate compulsory • Focus on keeping the administrative burden as low as possible • Reliability is based on frequent communication of mileages from a great number of independent sources

  13. More info: Michel Peelman CEO CAR-PASS asbl +32 27 73 50 59 mp@car-pass.be www.car-pass.be Boulevard de la Woluwe 46/2 BE- 1200 Brussels BELGIUM

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