Truth in Mileage Act of 1986

Truth in Mileage Act of 1985 - Amends the Motor Vehicle Information and Cost Savings Act to prohibit the registration or licensing of motor vehicles when the ownership is transferred in interstate commerce unless: (1) the application for a new certificate of title is accompanied by the prior owner's most recent registration card and title; and (2) the new certificate of title is printed in a specified manner and indicates the odometer mileage.

Provides that each State shall require a motor vehicle to furnish the transferee with the transferor's registration card.

Prohibits State issuance of a registration card for a motor vehicle used in interstate commerce unless the application contains the mileage of the motor vehicle on the application date.

Authorizes States to submit alternative mileage disclosure requirements for the approval of the Secretary of Transportation.

Provides that auction companies selling motor vehicles must maintain records showing: (1) the name of the most recent owner; (2) vehicle identification number; and (3) the odometer reading on the date the auction company took possession of the vehicle.

Increases the civil penalty for violations of the odometer requirements from $1000 to $2000, and increases the criminal penalty for such violations from one to three years maximum imprisonment.