For how many years must records of vehicle transfers and odometer statements be retained?

The correct answer reflects the requirement that records of vehicle transfers and odometer statements must be retained for five years. This retention period is set to ensure that dealerships maintain adequate documentation for legal and regulatory purposes.

Keeping these records for at least five years allows for easier tracking of ownership changes, verification of odometer readings, and compliance with federal and state regulations. In the event of audits, legal disputes, or inquiries regarding a specific vehicle, having accessible records from this period helps dealerships confirm the history and status of each vehicle transaction.

Longer retention periods beyond five years may be beneficial in certain contexts, but the law specifies five years as the minimum for the records in question, ensuring accountability without imposing excessive burdens on the dealership.