A “not actual mileage” brand on a vehicle’s title means the exact mileage of the vehicle is unknown.
Odometers are often key in determining the value of used cars, as they indicate how many miles the car has traveled—and help potential buyers determine how many miles more the vehicle might last. When shopping for used vehicles, you may notice certain cars come with titles that feature a “not actual mileage” brand under the odometer reading. But what exactly does this indicate, and it is a sign you should walk away?
The short answer is—it depends. Below, the trusted broker
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gets into detail on what a “not actual mileage” title means, and whether or not this branded title is worth the risk. We’ll cover reasons for a “not actual mileage” brand, go over the risks and benefits, and throw out tips to help you save money on car insurance
for a used vehicle. What does it mean for a title to say “not actual mileage?”
There are a number of different odometer designations that may be found on the back of a used vehicle’s title, one of which is “not actual mileage.” The Not Actual Mileage designation—sometimes written as (N) or NAM—indicates that the vehicle’s odometer reading cannot be relied upon to determine its actual mileage.
In other words, “not actual mileage” means that the vehicle’s exact mileage is unknown and the odometer reading may be misrepresenting its true mileage.
How does this happen? There are a couple of circumstances that could result in a “not actual mileage” designation appearing on a used vehicle’s title:
The odometer was formerly replaced and now incorrectly displays the vehicle’s mileage
The odometer broke, maxed out, or returned to zero, and remained broken for a period of time (or still remains broken)
The odometer was intentionally rolled back to deceive buyers (if proven, this is a felony level crime)
It’s also possible that the mileage was incorrectly recorded due to human error. It’s more common than you’d think for a service provider or dealership to accidentally read the odometer wrong and record incorrect mileage, or check the wrong box on the title—thus marring the mileage history of the vehicle.
If you notice a “not actual mileage” brand on the back of a used vehicle’s title, you should know that it’s a permanent brand that cannot be changed and it could have consequences for the vehicle’s resale value.
“Not actual mileage” versus “true mileage unknown”
How does a “not actual mileage” brand differ from a “true mileage unknown” one? The truth is, they’re not all that different.
The designation of “true mileage unknown” (sometimes abbreviated as TMU) is essentially just a nicer way of saying that the vehicle’s mileage history is inaccurate. Both terms are used to describe vehicles where the mileage is misrepresented or when there’s evidence that a vehicle’s odometer was possibly tampered with or replaced.
How a not actual mileage title affects the value of a used car
In most cases, a “not actual mileage” brand reduces the value of a vehicle.
Many buyers look to a vehicle’s odometer to determine its longevity—but there are factors outside of mileage that may actually be more indicative of a vehicle’s expected lifespan.
Doing your due diligence on a used vehicle by requesting a CARFAX report
and having a pre-purchase inspection done can help you make a more accurate estimate of a vehicle’s authentic mileage—and better determine its true value. MORE: 7 things to look for when buying a used car
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Risks and benefits of buying a car with true miles unknown or not actual miles
The question remains—should you buy a vehicle with a title that says “true miles unknown” or “not actual mileage?” As with any used vehicle purchase, it’s a bit of a gamble, so it’s important to take a look at the risks and benefits associated with buying a vehicle with unknown mileage.
Benefits
A “not actual mileage” designation is often the consequence of human error—maybe the mileage was misrecorded during an emissions test or a dealer checked the wrong box during the transfer of its title. The good news is, it’s often easy to catch where these mistakes occurred by looking into the vehicle’s history.
If you’re able to, it’s worthwhile to get a vehicle history report—chances are, you just might notice an odometer recording that drastically mismatches the rest of the vehicle’s record, making it easier for you to estimate where things went wrong (and what the vehicle’s true mileage is).
In addition to scoping out a vehicle’s history, you should also have a pre-purchase inspection done beforehand to identify any possible problems or necessary maintenance that its odometer reading (or lack thereof) may otherwise not reveal. Because vehicles with “not actual mileage” or “true mileage unknown” titles are undervalued, you can often end up getting a great deal on a valuable car.
Risks
Not every “not actual mileage” vehicle is a winner—which is why it’s important to do your research before making any irreversible investments. If you wind up purchasing a vehicle that you believe was misrepresented by the seller, you’ll have a tough time proving your case in court, since most states require solid proof of damage.
Even if you’re comfortable with the vehicle as it is, you could face other challenges when it comes to finding insurance or financing the vehicle. Branded titles often come with associated risks that cause insurance companies to raise their rates, and loan providers are loath to offer financing on vehicles that lack a clean title.
Another con? If you ever decide to resell the vehicle in the future, you’ll also face a lower resale value—and may even have difficulties finding a buyer.
Key Takeaway You may be able to get a not actual mileage vehicle for a cheap price, but the vehicle could be seen as risky to finance or insure.
Find hassle-free car insurance
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