What is the purpose of the REG 262 form during vehicle sales?

The REG 262 form serves as an important tool in vehicle sales specifically for documenting odometer readings. This form collects crucial information about the vehicle's mileage at the time of sale, which helps to prevent fraud related to odometer tampering. By accurately noting the odometer readings, the REG 262 ensures that both the seller and buyer are transparent about the vehicle's usage history. This disclosure is vital to maintaining trust in the transaction and protecting both parties from potential disputes regarding the condition and value of the vehicle. Furthermore, the requirement for this disclosure is often mandated by law to safeguard consumers against misrepresentations of vehicle mileage.

The other options don't align with the primary purpose of the REG 262 form; for instance, while tax exemptions, registration fees, and insurance are relevant aspects of vehicle ownership and transactions, they do not pertain specifically to the odometer disclosure function that the REG 262 form addresses.