How long must records of vehicle transfers and odometer statements be retained by the dealer?

The correct answer is that records of vehicle transfers and odometer statements must be retained by the dealer for five years. This retention period aligns with regulatory requirements that ensure transparency and accountability in motor vehicle transactions. Keeping these records for five years allows for sufficient time to address any potential issues that may arise, such as disputes regarding the sale, odometer discrepancies, or compliance audits.

The five-year period is considered a balance between ensuring that the dealer has enough historical data to support their transactions while not retaining documents for an excessively long time that may lead to outdated information being held unnecessarily. This practice aids in protecting both the dealer and the consumer, as it maintains a proper trail of vehicle ownership and mileage, which are critical aspects in the sales process.