CAR-PASS IS YOUR GUARANTEE OF AN ACCURATE ODOMETER.

The Car-Pass not-for-profit association is the entity that has been charged with registering vehicle odometer readings to implement the Act of 11 June 2004 to curb fraud with the odometer readings of vehicles. The not-for-profit

association has been approved for this purpose by the Royal Decree of 4 May 2006.

This report implements the provisions of Section 2 (2) of the Royal Decree of 21 February 2005 regarding the approval of and the audit of the association that is charged with the registration of the odometer readings of vehicles.

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Dear Reader,

2016 saw the celebration of Car-Pass’ 10th anniversary. The PwC report ‘the impact of 10 years of Car-Pass on the Belgian used car market’ looks back on those 10 years. The conclusion is as follows: ‘Mission accomplished’! Odometer fraud, or clocking, has basically fully disappeared in Belgium and therefore consumer confidence and fair competition on the used market have received a boost.

Does this mean that our work is done? Certainly not. The professionals of the sector have the clear opinion that if the Car-Pass system should be stopped, the fraud would rear its ugly head again as it used to in the past. Car-Pass must therefore continue down the taken path. This means that attention must be paid permanently to the sensitisation and information provision of the general public through the well-known information campaigns in different media. We also want to noticeably improve the quality of the received data. Far too often errors are made when reporting odometer readings. The connected car will undoubtedly offer interesting possibilities to prevent errors when registering odometer readings. This will not only improve accuracy, but will also further reduce the work load of the companies operating in the car sector.

Unfortunately, Car-Pass cannot currently offer a solution for fraud involving imported vehicles. An analysis of the odometer readings of the cars and light vans that were imported in 2015 from the Netherlands has shown that there are serious suspicions of odometer fraud in 15% of these vehicles. It can be logically assumed that this also applies to the import from other countries and especially from Germany. There is therefore an urgent need for a European approach to this problem. Belgium and the Netherlands are setting the right example and have started to exchange odometer readings since November 2016. Despite the fact that odometer fraud costs European consumers billions of euros each year, the European Commission and a number of large member states keep ignoring the problem. The time has really come to take

a legislative initiative inspired on Belgian legislation regarding which success has been clearly proven. We are counting on our Belgian representatives in the Council and the European Parliament to keep this theme under the attention of the Commission.

The report from PwC has also shown that there are still quite some needs amongst both professionals and consumers that Car-Pass can fulfil. The Car-Pass certificate offers the significant advantage that it is a document that the seller must hand over immediately to the buyer when the sales agreement is signed. We believe that the Car-Pass certificate must evolve from being a document with which the buyer can check the correctness of the odometer reading to a system that informs the buyer in a transparent and clear manner about all relevant objective elements that are the determining factors for the further use of the vehicle. There is already an agreement about the first specific details of this principle. Deputy Prime Minister Kris Peeters, Febiac and Traxio have together singed recommendations for transparent information to the customer about software updates and recall actions of vehicles. The car importers will inform vehicle owners that, if they do not respond to an invitation for a recall action with the purpose to guarantee safety or compliance of the vehicle, this will be mentionned on the Car-Pass of the vehicle.

The Car-Pass system has clearly proven its efficiency and maturity the past ten years. I am convinced that Car-Pass will meet the new challenges head on successfully and that we will again, in ten years’ time, reflect with suitable pride on the delivered work.

Please discover all the details of the past year of activities on the following pages and I hope you enjoy reading this interesting report.

Philippe MertensChairman

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1 CAR-PASS CERTIFICATES

1a number of certificates issued in 2016 804,053

1b number of certificates issued upon import 63,214

1c number of (highly) probable cases of fraud 1,795

1d average size of the fraud (km) 73,974

2 MILEAGE READINGS

2a number of mileage readings in the database on 31.12.2016 185,216,906

2b number of mileage readings that are linked to active vehicles (*) 105,488,864

2c number of mileage readings received in 2016 15,330,829

2d number of companies who have provided at least one mileage reading 11,255

3 VEHICLES

3a number of vehicles in the database on 31.12.2016 21,424,555

3b number of active vehicles on 31.12.2016 7,161,441

3c number of vehicles for which at least one mileage reading was received in 2016 6,062,981

3d average mileage reading upon issuing the Car-Pass 117,382

3e average age of the vehicle upon issuing the Car-Pass (in years) 8.53

3f number of vehicles for which a Car-Pass OK label status was granted 210,619

(*) vehicles registered as of 31.12.2016 or for which an odometer reading has been received after 30.6.2015

WHAT IS CAR-PASS?

Are you buying a used vehicle or light van in Belgium? The seller is legally required to give you a Car-Pass. It doesn’t matter whether the car is being sold commercially or privately. The Car-Pass shows the odometer reading on different dates. The document may not be more than two months old. If you do not receive a Car-Pass, the sale is invalid and you can request to cancel the contract and receive a full refund. The odometer reading on the Car-Pass comes from reliable sources: garages, body shops, fast fit service centres, tyre companies, technical inspections, etc. After maintenance, repair, assembly or inspection, they forward the current odometer reading to Car-Pass non-profit. They have to by law. All of those odometer readings are stored in the Car-Pass database. The data can only be used for the Car-Pass itself − not for commercial purposes. The database does not contain the license plate number or any data related to the owner of the vehicle.Car-Pass non-profit was certified by royal decree to manage the database and issue the mileage certificates. It was founded by the associations representing the automotive industry and the motorists in Belgium. Car-Pass certificates are issued at vehicle inspection stations at the time of the compulsory inspection before the new owner registers a used vehicle. The non-profit doesn’t receive subsidies and is fully funded by Car-Pass sales at the price set by royal decree.The Car-Pass model has been a real success. Since the Car-Pass system was introduced, the number of new cases of tampered odometers has fallen dramatically: from over 60,000 per year to only 1,795 in 2016. Several factors account for this success:• A simple legal framework with clear and effective sanctions • The Car-Pass creates more transparency for buyers and fraud is clearly

apparent on the certificate. • The automotive sector was in favour of cleaning up the used vehicle

market from the start, which is why the system immediately received its widespread support.

• The system is based on a common practice in the sector: that is, whenever a vehicle is brought in for service, its mileage is recorded.

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MANAGEMENT SUMMARY

2006… the year in which the Car-Pass system saw the light of day and Car-Pass non-profit was baptised. The first steps were taken many years before, with initiatives from the sector and the long-awaited introduction of the Car-Pass legislation in 2004. Today, we are ten years down the line and look back at the past decade. Has Car-Pass non-profit achieved what it had in mind? How has the introduction of Car-Pass affected the sector? And what opportunities still await us in the future? Those are the key questions underlying this study.In order to answer these questions, an inclusive approach was used whereby the opinions of consumers and stakeholders from the sector were gathered and, where possible, underpinned by quantitative data analysis. The conclusions from the various interviews and analyses make at least one important conclusion crystal clear: thanks to the Car-Pass system, mileage fraud in Belgium has to all intents and purposes disappeared. Consumers have undergone a major psychological development during the past ten years: they no longer doubt the mileage of used cars, and consider the Car-Pass certificate and the underlying control system to be a natural part of the market. Ten years ago, the sector could only dream about such a result... What’s more, consumers and stakeholders alike said that they have gained more trust in the second-hand market since the introduction of the Car-Pass certificate, and that competition is much fairer. So this means that Car-Pass non-profit has already achieved its most important goal!

THE BELGIAN SECOND-HAND MARKET

The basic premise underlying this study was to evaluate the impact that Car-Pass may have had on the market for second-hand vehicles in Belgium during the past decade. Last year, Car-Pass non-profit celebrated its tenth anniversary: this is the perfect time to take stock and to have a closer look at developments in the market and the impact that Car-Pass may have had on it.

Car-Pass non-profit was officially founded in 2006, with a clear mission: to curb mileage fraud in the second-hand market for passenger vehicles and light commercial vehicles. Passenger vehicles and light commercial vehicles together are good for around 85% of the entire Belgian fleet. The vast majority of these vehicles are owned by consumers. What’s more, in two out of three cases, they choose a used vehicle when purchasing a car, and this choice is driven by price. The second-hand car market in Belgium is estimated at more than 1.1 million sales transactions. This is an important business, one that can only function properly if consumers

have confidence that vehicles are being traded in an honest and transparent way, and if there is also a legal safety net if one is cheated. The Car-Pass system and the so-called Car-Pass Act are therefore principally aimed at securing consumer confidence.

The Belgian fleet and the market in second-hand vehicles have very specific features:• Because of its significant lease market, there is a considerable turnover in new, well-

equipped cars that are offered for sale on the second-hand market once their lease period expires. These are often diesel vehicles that have relatively high mileage on the clock on completion of the lease agreement.

• Consumers mainly base their choice for a specific vehicle on attributes such as price/quality ratio, safety and the mileage on the vehicle’s clock. For instance, they look for new cars with a mileage of around 120,000 kilometres, and in recent years there has once again been a surge in interest in petrol vehicles. Needless to say, this preference is also partly influenced by the tax climate driving this demand.

As a result, supply and demand on the domestic market are not always fully aligned. Prior to 2006, the domestic market as well as the markets in the surrounding countries have been confronted with a major problem in the form of mileage fraud. This type of fraud was typically extremely lucrative for sellers, who were at liberty to apply artificial price increases for vehicles for which they could manipulate the mileage to a lower level due to the absence of a watertight monitoring system and a lack of expertise among consumers. There are various indications that this type of fraud constituted a widespread phenomenon in the second-hand market. Case law has shown, for instance, that taxis with several hundreds of thousands of kilometres on the odometer were offered to consumers as new vehicles with limited kilometres on the clock.

Thanks to the Car-Pass system, mileage fraud in Belgium has to all intents

and purposes disappeared.

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The intention behind Car-Pass was to contain this kind of fraud, and to do so based on regular recordings of odometer readings and the mandatory issuing of a certificate in combination with a preventative and responsive control system. A detailed overview of the vehicle’s history is accumulated by recording the mileage during every intervention carried out on the vehicle from the first year of its life.

MILEAGE FRAUD HAS BEEN ERADICATED AND CONSUMERS’ CONFIDENCE HAS INCREASED

This way of working has clearly paid off as it stands today: consumers and stakeholders unanimously agree that mileage fraud in the second-hand market for Belgian cars has been virtually eradicated thanks to the Car-Pass system. Consumers have more confidence in the second-hand market and notice an obvious professionalisation of the sector. They mentioned the advantages of the Car-Pass as a sign of transparency and credibility, and recognise that the presence of a Car-Pass certificate is likely to make them more satisfied with the purchase they have made.

The Car-Pass gives me full transparency about the car’s mileage history

Thanks to the Car-Pass, I have more confidence in the second-hand car market

The Car-Pass increases the dealer’s credibility

The Car-Pass increases my sense of satisfaction regarding the purchase of the car

The introduction of Car-Pass

Reasons:

According to 71% less fraud is committed with second-hand vehicles now than ten years ago

It is more difficult technically to adjust odometer readings*

Consumers have become more assertive

The chances of getting caught are bigger

Greater control by the authoritiesI don’t think a seller is professional if they can’t provide a Car-Pass

Agree completely More inclined to agree Consumers recognise the advantages of Car-Pass (results of 1,045 consumer interviews)

Consumers have more confidence in the second-hand market and notice an obvious

professionalisation of the sector.

*This is in fact a misunderstanding by consumers

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The impact of Car-Pass on used car market: average scores

Trends in actual sales prices in the Belgian second-hand market, segmentation by mileage (average age = 4 years)

02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

108642

12,000

10,000

8,000

6,000

4,000

2,000

0

Sale

s pr

ice

in e

uro

Year of sale of the vehicle

BE < 100,000kmBE > 100,000kmResults interviews of 282 Traxio members

(score 0 – 10, whereby 0 = do not agree at all and 10 = completely agree with the statement)

Customers no longer doubt odometer readings on cars

Competition in Belgium is fairer

Mileage fraud in Belgium has been virtually eradicated thanks to Car-Pass

When purchasing, I demand a Car-Pass and/or a good service history

I explain the Car-Pass when selling cars

Mileage fraud is a problem in imported vehicles

Customers know about the Car-Pass and know how the information is accumulated

I use the Car-Pass as a sales pitch

7.63

7.49

7.47

7.07

6.91

6.90

6.80

6.77

The Traxio members (car professionals) interviewed concurred with these observations, and are moreover convinced that the Car-Pass is responsible for fairer competition in the second-hand car market. An important observation that they make in this respect is the significance that the Car-Pass system has for maintaining this situation. They believe that the curtailment of mileage fraud is mainly sustained thanks to the Car-Pass system, and that without this system the fraudulent practices from the past would surface once more. As a result, Car-Pass plays a crucial role in ensuring that the positive impact on reducing mileage fraud that we can see today continues in the future.

Apart from the impact that Car-Pass has had on curbing odometer fraud, this study revealed several other significant trends in the market that were achieved mainly thanks to Car-Pass:

• Thanks to Car-Pass, prices on the domestic market are a better reflection of the actual value of the vehicle. This trend has been prompted by the fact that sellers no longer charge artificial price increases based on manipulated odometer readings, and consumers no longer have to keep a risk premium in reserve when purchasing a vehicle. The analyses of the price levels of new and used cars on the market showed that the price correction occurred slowly following the implementation of Car-Pass certificates. The Car-Pass system did not trigger a shock effect in the market. After 2006, a slightly deviating curve arises for the cars with mileages of fewer than 100,000 km compared to the curve of those with more than 100,000 km on the clock. Prior to 2006, sales prices for each group were virtually at the same level; in the period from 2001 to 2004, it seems as though vehicles with higher mileage were even more expensive. Whether this differentiation in prices based on odometer readings after 2006 is attributable to the implementation of the Car-Pass cannot be stated with any certainty, but when it comes to setting prices for this sample of vehicles, it is as though mileage has begun to gain in importance since 2006.

The Car-Pass is responsible for fairer competition in the

second-hand car market.

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• Car-Pass has made the biggest difference to sales to consumers, which was precisely the intention. In addition, Car-Pass is also an important factor when dealers buy from consumers. For instance, dealers said that they also often demand to see Car-Pass certificates when they purchase a car as a source of information about the car’s history.

• Car-Pass also indirectly affects other kinds of fraud (social fraud, VAT fraud and so on), and creates growth opportunities for the sector, thanks to increased consumer confidence.

WHAT NEXT? ADDITIONAL INFORMATION ON THE CAR-PASS

This leads us to the conclusion that Car-Pass has managed to achieve its original objective as far as the domestic market is concerned. As it stands now, however, the impact of the Car-Pass system is unfortunately restricted to Belgium. Given the large proportion of imported and exported cars within the EU, and the increasing globalisation of the market, mileage fraud can only really be curtailed if a European cross-border system can be set up. Car-Pass has been working hard on such a system for many years, and needs to continue to do so in the future, so that it can have an impact on a large scale.

Apart from this potential improvement on a European scale, there is also certainly room for improvement within the context of the Belgian system. The interviews with consumers and stakeholders that were part of this study and interviews with Car-Pass non-profit led to a set of recommendations. These are measures that can contribute tangibly to the improvement of the effectiveness and efficiency of the existing system:• The effectiveness of the Car-Pass certificate can be improved by focusing on raising

awareness of the Car-Pass system, in particular when it comes to how the information on the certificate is accumulated. Raising awareness in this respect may contribute to encouraging consumers to take their vehicles to recognised companies for servicing and repairs. This would result indirectly in a reduction of undeclared work and an increase in safety.

• As it stands now, Car-Pass certificates are handed over during the pre-purchase inspection for used cars. Often the sales transaction has already taken place. Making Car-Pass information available sooner would ensure that consumers can consult this information earlier on in the purchasing process, and as a consequence they would be better informed when making a decision.

• Imported vehicles do not have any history in the Car-Pass system; consumers are often not sufficiently aware of this fact and the risk that they run. At present, the Car-Pass states that it is an imported vehicle for which no history is available. This statement could, however, be given an even more prominent place on the Car-Pass certificate.

In addition, consumers and stakeholders also see opportunities for expanding the available information that Car-Pass offers to consumers. Needless to say, it is important that objective information should always be sought that serves to protect consumers. Here we have in mind, for instance, information about serious damage to the vehicle, recalls not carried out or the vehicle’s environmental features.

These improvements would require amendments to the legal framework that regulates the Car-Pass system, but stakeholders and consumers alike believe that they would offer real benefits for consumers as well as the sector.

Consumers and stakeholders also see opportunities

for expanding the available information on the Car-Pass

certificate.

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Belgium and the Netherlands are the only countries in Europe that have a central database with odometer readings. It was therefore obvious that Car-Pass and RDW (the Dutch Government Road Transport Agency) would exchange data to make fraud involving imported vehicles more difficult. An analysis involving 8,102 used cars imported from the Netherlands proves the need for this project.

An initial remarkable finding is the average age of the cars imported in the year 2015. This was 19.44 years. 27% of imported vehicles date from the 1976-1990 period and are therefore old timers in accordance with current Belgian legislation. This is undoubtedly related to the difference of the old timer status in both countries. Since 1 January 2014 the Dutch Tax Authorities regard a car as being an old timer when it is at least 40 years old. On the contrary, the status of old timer was recently relaxed in Belgium. The average odometer reading of the imported vehicles was also fairly high and amounted to nearly 164,000 km. In total, 20% turned out to have a lower odometer reading than the last known one in the RDW database during the import inspection in Belgium. The average deviation amounted to nearly 110,000 km. It might happen that older vehicles have a 5 digit odometer or that the odometer has been replaced or repaired during restoration work. This can partly explain the high percentages in the deviation from the trend. An analysis was therefore performed involving 2,602 cars that were 10 years old at most. This also, however, showed that 15% was also rolled back by an average of 100,000 km.

If we limit ourselves to cars that are ten years old at most and if we calculate with a fraudulent additional value of 3,000 euros per car, Belgian consumers have paid nearly 1.2 million euros too much in 2015 when buying these cars. Previous studies have shown that the additional maintenance and repair costs that vehicle owners had to deal with afterwards can easily be half of the loss upon purchase, therefore, more than half a million euros. This fraud therefore costs the Belgian consumer 1.75 million euros, whithout even including all possible losses involving cars that are older than ten years.

A number of legal conditions had to be fulfilled for the neighbouring countries to start exchanging odometer readings. The exchange of odometer readings with RDW is supported by 3 texts.

• The declaration of intent to have a joint approach to fighting odometer fraud: the competent ministers, Ms Melanie Schultz van Haegen, Mr Kris Peeters and Mr François Bellot, have instructed RDW, the Federal Public Service Economy, the Federal Public Service Mobility and Transport and the Car-Pass not-for-profit association to mutually exchange data regarding vehicles that are traded between both countries to thus fight odometer fraud.

• The Memorandum of Understanding between the Belgian Federal Public Service Mobility and Transport and the Dutch RDW arranges the exchange of the odometer readings between the Crossroads Bank for Vehicles and the not-for-profit Car-Pass association.

• To conclude, Car-Pass and RDW have entered into an agreement in which the practical modalities of their partnership are described. This agreement was signed during the conference held on 19 October.

After a test period of a few weeks, Car-Pass and RDW effectively exchanged the first odometer readings on 18 November 2016. This data effectively appears on the Car-Pass certificates on the Belgian side. Quite some fraud cases have come to light in this way. The initial results confirm the figures from 2015 as described above. We hope that fraudsters will now come to realise quickly that odometer fraud with vehicles imported from the Netherlands really serves no purpose.

Michel Peelman and Philippe Mertens (Car-Pass) and Ab van Ravestein (RDW) were clearly delighted after signing the agreement between Car-Pass and RDW.

Fraud with imported cars from the Netherlands costs the Belgian consumer

1,75 million euros every year.

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TEN YEARS OF CAR-PASS INTERNATIONAL CONFERENCE

Car-Pass celebrated its tenth anniversary on 19 October 2016 by organising a conference at Autoworld that had the following theme: ‘International Conference on Policies Against Odometer Fraud’.

The goal of this conference was to put the issue of odometer fraud higher on the European agenda and to show the benefits of the Car-Pass system to policy makers and representatives of the automotive industry all over Europe. Car-Pass had invited 20 international speakers including Federal Minister François Bellot, 2 members of the European Parliament and 2 members of the European Commission. This conference was a great success with 220 participants. 41% of the participants came from abroad from 17 different countries in total. 14% worked for European institutions or organisations. The voting held during the conference showed that nearly 90% of those present believe that odometer fraud is a serious problem, 78% is of the opinion that this problem must be tackled by the EU and 72% believes that a database (such as the Car-Pass one) offers the most efficient solution. Unfortunately, the representatives of the European Commission who were present could not make any specific promises. Car-Pass will therefore have to continue to insist that the fraud needs to be fought on a European level.

Nearly 90% of the participants believe that odometer fraud is a serious problem, 78% is of the opinion that this problem must be tackled by the EU and 72% believes that a database (such as the Car-Pass one) offers the most efficient solution.

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EUROPEAN PARLIAMENT

Under the impetus of T. Zdechovský, 9 members of the European Parliament have drew up a written declaration in the spring of 2016 in which they call upon the Commission to tackle the odometer fraud problem. To adopt this written declaration, it had to be signed by a majority of MEPs. The managing director of Car-Pass visited a large number of Parliament members in Strasbourg to convince them to co-sign the document. In the end, 147 MEPs signed. Too few therefore to approve the text. This high number, however, does prove that the topic is deemed important within the European Parliament and is therefore an incentive to continue the battle.

GERMANY

A solution for odometer fraud continues to stumble against strict legislation that protects personal privacy in Germany. Nevertheless, our neighbours on the East are very interested in the Belgian approach. The popular consumer programme ‘Plusminus’, which is broadcasted by ARD, for example, gave ample attention to illegal clocking and the way in which Belgium resolves this problem. The Land Parliament of Niedersachsen approved a resolution on 16 November 2016 in which it calls on the Federal Government to stop odometer fraud. The text expressly refers to the Belgian Car-Pass system. Now we need to wait and see whether Berlin will run with it.

GRAND DUCHY OF LUXEMBOURG

The Minister for Transport of Luxembourg, Mr François Bausch, received a delegation from Car-Pass in February 2016. He wanted to be informed about the fight against odometer fraud in our country. Things seem to now be evolving in the Grand Duchy. In October 2016, all federations of the car sector united in the ‘House of Automobile’ signed a joint statement in which they affirm that odometer fraud negatively affects the image of the sector and makes fair competition extremely difficult. The signatories have pointed to the fact that the Belgian Car-Pass system can be a source of inspiration for the Grand Duchy of Luxembourg.

OTHER COUNTRIES

During the past year of activities, Car-Pass received delegations from Slovakia and Norway and the managing director was invited to attend a meeting in Paris with the director of the French administration competent for vehicle inspection. The managing director also co-chaired a workshop about odometer fraud that RDW organised in Brussels within the framework of the Dutch EU chairmanship. All these Car-Pass efforts focus on creating a growing awareness around odometer fraud both at the level of the European Union and in the member states. As long as the fraud is not sufficiently tackled on a European level, we will, after all, continue to be confronted with the import of rolled back vehicles in Belgium.

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SHARE OF THE IMPORT IS INCREASING

2015 was a record year for Car-Pass in which we exceeded for the first time the milestone of 800,000 issued certificates. 2016 scored nearly as well with 804,053 units (-0.41%). The share of paid for certificates (that at least specify 4 odometer readings) was 79.42%. 63,214 were applied for in relation to the import of used vehicles. This is a noticeable increase of 18.2% when compared with the previous year. The share of imports therefore is 7.86%. The increasing demand for petrol vehicles that are not available on the local market in sufficient numbers can be an explanation for this.

THE AVERAGE USED VEHICLE IS A VOLKSWAGEN THAT IS 8 YEARS AND 6 MONTHS OLD WITH 117,382 KM ON THE ODOMETER

If we closely examine the make for which a Car-Pass was printed, then we find that Volkswagen is the absolute forerunner with 96,410 supplied Car-Pass certificates and is ahead of Opel and Peugeot. The graph below shows the distribution of the number of certificates in accordance

with the make. The make that increased the most on an annual basis within the top 15 is Hyundai with + 8.56%.

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Mileage

30.2%

18.2%

11.4%

36.6%

3.6%

Age of the vehicles for which a Car-Pass was issued

< 2 years

2 to 4 years

5 to 9 years

10 to 24 years

≥ 25 years

BRAND MODEL MILEAGE YEAR OF 1ST REGISTRATION

1 MERCEDES SPRINTER 985,072 2007

2 MERCEDES 250 961,086 1991

3 CITROËN JUMPER 955,102 2011

4 MERCEDES E350CDI 944,447 2010

5 MERCEDES 300 905,514 1976

6 MERCEDES VITO 894,175 1999

7 MERCEDES VITO 859,957 2010

8 MERCEDES 250 852,562 1991

9 MERCEDES VITO 828,939 2012

10 CITROËN C5 824,568 2009

The Belgian used car or van is 8.53 years old on average. 29.6% is not older than 4 years as is shown on the related graph. 30.2% is older than 5 years but younger than 10 and 36.6% is older than 10 years. 28,630 vehicles were old timers (25 years old and older). This is a remarkable rise of 37% in 2 years time. The favourable taxation status of the old timer is probably the reason.

The graph below shows at which odometer reading the Car-Pass was issued. It has emerged that a used vehicle has an average of 117.382 km on the odometer when it is sold. This means that the average used vehicle has covered 13,756 km a year. 67.6% of the used vehicles has less than 150,000 km on the odometer. Nevertheless, more than 14,000 vehicles were sold last year that had driven more than 300,000 km.

HIGHEST ODOMETER READING ON A CAR-PASS: 985,072 KM

The vehicle with the highest odometer reading for which a Car-Pass was issued in 2016 was a Mercedes Sprinter van from 2007 with no fewer than 985,072 km on the odometer. The milestone of 1 million kilometres is quite close to this. Below we list the ten vehicles with the highest odometer readings that were brought in for a pre sales inspection regarding which five had driven more than 900,000 km.

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CAR-PASS RECEIVED 15,330,829 ODOMETER READINGS IN 2016.

This is a nice increase of 3.5% when compared to last year. The most important source are the professionals that pass on their data in structured data files. We have also seen a noticeable rise in the use of web services. Motor vehicle inspections are responsible for more than a third of the total data flow. The number of odometer readings that is sent in through a fax has dropped (considerably) to below 100,000 units for the first time. This in comparison with 2007, when the fax was used to pass on 380,000 odometer readings It is clear that this medium has now been surpassed. A nice finding is the doubling of the number of historical consultations. This, however, can mainly be ascribed to a limited number of actors who make intensive use of this facility. For the first time in these figures, the supply of data through the Eucaris network is present. This, of course, concerns the odometer readings coming from RDW in the Netherlands.

1,795 CASES OF ODOMETER FRAUD IN 2016

By comparing the odometer reading with the prior odometer reading(s) upon issue of the Car-Pass, you obtain a clear picture of the number of fraud cases since the odometer is generally rolled back just before the vehicle is sold.1,795 cases of odometer fraud came to light in this way in 2016 thanks to the Car-Pass. This is 0.24% of all Car-Pass certificates without taking into account the ones that are issued for import vehicles. We are miles away from the 60,000 to 100,000 rolled back odometers from the period before the introduction of the Car-Pass, which is clear proof of the success of the system. However, this figure is remarkably higher than in previous years. We must, therefore, stay vigilant and point out to buyers of used vehicles that they must demand the Car-Pass from the seller. The odometer was rolled back by 73,974 km on average in the aforementioned cases. We do not want to deny you the information about the most flagrant fraud cases and we have listed them in the table below. The most significant fraud involved a Mercedes Sprinter van from 2013 regarding which the odometer reading was rolled back with no fewer than 570,000 km. Fortunately, these are great exceptions.

2016 2015 2016 vs 2015

Technical inspection 5,333,571 34.8% 5,345,004 36.1% -0.2%

Data transmission via file transfer 8,688,053 56.7% 8,473,858 57.2% 2.5%

Input via website 879,902 5.7% 788,725 5.3% 11.6%

Input via fax or mail 80,083 0.5% 100,206 0.7% -20.1%

Input via web services 279,715 1.8% 74,712 0.5% 274.4%

Eucaris web services 16,613 0.1%

Vehicle history checks 52,892 0.4% 22,793 0.2% 132.1%

Total 15,330,829 100.0% 14,805,298 100.0% 3.5%

BRAND MODEL LATEST MILEAGE

PREVIOUS MILEAGE

DIFFERENCE YEAR OF 1ST REGISTRATION

1 MERCEDES SPRINTER 101,536 672,199 570,663 2013

2 IVECO DAILY 171,670 657,790 486,120 2011

3 VOLKSWAGEN CARAVELLE 200,110 657,683 457,573 2011

4 OPEL INSIGNIA 124,319 526,310 401,991 2012

5 RENAULT MASTER 30,293 381,854 351,561 2013

6 MERCEDES E220CDI 248,159 592,662 344,503 2005

7 AUDI A4 175,578 497,177 321,599 1999

8 PEUGEOT PARTNER 172,238 488,500 316,262 2011

9 GMC K2500 87,174 402,475 315,301 2008

10 VOLKSWAGEN TRANSPORTER 160,865 468,521 307,656 2007

15

34.36%

42.59%

18.80%

4.25%

less than 100 inputs

≥ 100 and < 1000

≥ 1,000 and < 5,000

≥ 5,000

11,255 COMPANIES REPORTED ODOMETER READINGS

We have noticed a rise of 1.2% of the number of companies that has at least passed on the information about one odometer reading last year. We have also noticed within this context the significant drop of fax users: by 23.2%. Fewer than 500 companies used the fax as communication resource last year. More than half (57.65%) of companies submits their odometer readings through the website. They are, naturally, smaller companies because they send in only 135 odometer readings per year on average when compared to 2,140 odometer readings per company that uses a software package. During the course of 2016, 223 companies switched to the use of web services.

THE 50 LARGEST COMPANIES ACCOUNT FOR 47.5% OF ALL DATA

Only 478 (4.25%) users supply more than 5,000 odometer readings per year. Fewer than a quarter exceeds the limit of 1,000 data items. 42.59% of companies are small suppliers with fewer than 100 odometer readings over the entire year. On average, 8,173 companies passed on data on a monthly basis. It is important with regard to the reliability of the system that the largest possible number of companies (large and small) cooperate to the best of their abilities and supply odometer readings. This remains an ongoing area of concern for Car-Pass.

2016 2015 2016 vs 2015

Users fax/mail 480 4.3% 625 5.6% -23.2%

Users file transfer 4,058 36.1% 4,241 38.1% -4.3%

Users file transfer 6,488 57.6% 6,252 56.2% 3.8%

Users web services 229 2.0% 6 0.1% 3716.7%

Total 11,255 100.0% 11,124 100.0% 1.2%

Companies grouped by volume of submitted data

16

THE DATABASE CONTAINS A TOTAL OF 185,216,906 ODOMETER READINGS AND 21.4 MILLION VEHICLES

The Car-Pass database contains all chassis numbers of passenger cars and light vans that were registered in Belgium during the last decades. These amount to 21.4 million registered vehicles. 7.16 million of these belong to the active fleet of vehicles, that is to say, the registered vehicles on 31.12.2016 plus the vehicles for which Car-Pass still received an odometer reading after 30.6.2015. 105.5 million odometer readings (57%) can be linked to this active fleet of vehicles. This is therefore 14.7 odometer readings per active vehicle on average. Below you will find the list of the makes classified in accordance with the average number of odometer readings per registered vehicle. (At least 10,000 registered vehicles on 31.12.2016.) The differences between the makes are becoming smaller year after year except for a few outliers (which can usually be explained by the average age of the fleet).

The companies that carry out the technical inspection are ahead in the ranking of the data suppliers. In addition, the top 50 contain the largest chains of fast fitters and tyre centres, motorists associations and large dealer groups.

1. Autosécurité 26. Ghistelinck Autobedrijven

2. Autoveiligheid 27. Mercedes-Benz Belgium Luxembourg

3. Studiebureel voor Automobieltransport 28. Inchcape Retail Belgium

4. AIBV 29. W.A. Pneu Vanhamme

5. Keuringsbureau Motorvoertuigen 30. Garage Don Bosco

6. Bureau Voor Technische Controle 31. Midas

7. AUTO 5 32. Etablissements Central Pneu

8. Carglass 33. WKA

9. Automobiel Controle en Techniek 34. Banden André Ninove

10. Touring Club Royal de Belgique 35. V.P. Pneus

11. La Sécurité Automobile 36. Vereenooghe

12. C.T.A. 37. Renault Retail Group Belgium

13. VAB 38. Jorssen

14. Peugeot Distribution Service 39. L. Louyet

15. D'Ieteren 40. ITAL Garage

16. Lambrecht (nummer één in banden) 41. Lambrecht (numéro un du pneu)

17. Bandenbedrijf Vandekerckhove 42. Afrima

18. Etablissementen Gonthier 43. Interpneu P. Boonen

19. Garage Valckenier 44. Garage P. Schyns Liège

20. Centrauto 45. Autobedrijf Jacobs

21. Garage Piret (Wavre) 46. Auto Satellites

22. SP Tyres 47. U.T.I.

23. By Lentz 48. Pashuysen

24. L M B C I 49. D'Hondt

25. Banden De Condé 50. Nieuwe Automobielmaatschappij

SAAB 27.65 SEAT 14.76

CHRYSLER 22.22 MAZDA 14.69

VOLVO 17.11 JAGUAR 14.63

ALFA ROMEO 16.42 CITROËN 14.51

MITSUBISHI 16.27 NISSAN 13.16

IVECO 16.14 LEXUS 13.10

MERCEDES 16.11 CHEVROLET/DAEWOO 13.01

VOLKSWAGEN 15.95 SMART 12.75

OPEL 15.93 FIAT 12.65

BMW 15.82 MINI 12.11

RENAULT 15.81 JEEP 12.03

TOYOTA 15.72 SUZUKI 11.89

LANCIA 15.67 SKODA 11.03

FORD 15.10 HYUNDAI 10.73

PEUGEOT 14.96 PORSCHE 10.66

HONDA 14.86 KIA 9.60

LANDROVER 14.82 DACIA 6.69

AUDI 14.78

17

2007

2011

2016

30

25

20

15

10

5

0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Age of the vehicle

Aver

age

num

ber o

f mile

ages

Car-Pass never received an odometer reading regarding more than a third of the vehicles older than 4 years (6.7 million). More than half of the other vehicles have not been taken to a garage or for a technical inspection since 2012. We can assume that the large majority of these vehicles has left the country. Except for the certificate of destruction, we do not, however, have an official deregistration procedure in Belgium. This makes it difficult to identify and file exported vehicles. The probability that a vehicle reappears regarding which Car-Pass has not received an odometer reading for at least 4 years is barely 1.6%.

We can also view the number of registered odometer readings in relation to the age of the vehicle. The graph shows the growth of the database for the registered fleet of vehicles since 2007. The maximum can be found with regard to the vehicles in their 18th service year regarding which Car-Pass has 26.9 odometer readings on average. For vehicles that are not older than 10 years, we have more than 2 odometer readings per service year on average and thereafter this number drops. This is logical because the Car-Pass system was only introduced in 2006.

18

GENERAL ASSEMBLY

Founding members• FEBIAC asbl

Boulevard de la Woluwe 46, boîte 6, 1200 Bruxelles

• TRAXIO asblAvenue Jules Bordet 164, 1140 Bruxelles

• AIBV saBoulevard Sylvain Dupuis 235, 1070 Bruxelles

• Auto Contrôle Technique sarue Colonel Bourg 118, 1140 Bruxelles

• Autosécurité saZoning Industriel de Petit Rechain, Avenue du Parc, 4800 Verviers

• Autoveiligheid nvBrusselsesteenweg 460, 2800 Mechelen

• Bureau voor Technische Controle nvSantvoortbeeklaan 34-36, 2100 Deurne

• CTA saAmbachtenlaan 10, 3001 Leuven

• Keuringsbureau Motorvoertuigen nvZandvoordestraat 442A, 8400 Oostende

• La Sécurité Automobile saRue Lieutenant Lotin 21, 1190 Bruxelles

• Studiebureel voor Automobieltransport nvPoortakkerstraat 129, 9051 Sint-Denijs-Westrem

Associated members• Royal Touring Club de Belgique asbl

Rue de la Loi 44, 1040 Bruxelles

• VAB nvPastoor Coplaan 100, 2070 Zwijndrecht

Observers of the federal government• Ministry of Economy, SMEs,

Self-Employed and EnergyBoulevard du Roi Albert II 16, 1000 Bruxelles

• Ministry of Mobility and TransportsCity Atrium, Rue du Progrès 56, 1210 Bruxelles

BOARD OF DIRECTORS

Chairman• Philippe Mertens

Treasurer FEBIAC asbl Member of the board Beherman Group

Vice chairmen• Katia De Geyter

Vice chairman GOCA Flanders asbl CEO SBAT sa

• Carl VeysChairman TRAXIO asbl CEO Garage Veys sa

Managing director• ir. Michel Peelman

Administrators• Philippe Decrock

Spokesperson/senior Company lawyer/new mobility TRAXIO asbl

• François-Xavier DuboisSecretary general FEBIAC asbl

• Olivier GoiesVice chairman GOCA Wallonia asbl Chairman of the board of directors Autosécurité sa

Observers of the federal government• Francis Deryckere

Counselor general Ministry of Economy, SMEs, Self-Employed and Energy

• Delphine HogenboomAttaché legal counselor Ministry of Mobility and Transports

Representatives of the associated members• Geert Popelier

Manager Legal and Public Affairs VAB sa

• Thierry WillemarckCEO Royal Touring Club de Belgique asbl

19

R.E.

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Car-Pass non-profit is an initiative from FEBIAC, TRAXIO and GOCA, supported by Touring and VAB and in collaboration with the Federal Ministry of Economy and with the Federal Ministry of Transport.

+32 (0)2 773 50 56 - info@car-pass.be - car-pass.be