Speedometers are not totally accurate, and most speedometers have tolerances of some 10% plus or minus due to wear on tires as it occurs. Additional sources of error are tire diameter variations due to temperature, pressure, vehicle load, and nominal tire size.
Modern speedometers are said to be accurate within 10% but as this is legislated accuracy, this may not be entirely correct. This can make it difficult to accurately stay on the speed limits imposed; most countries allow for this known variance when using RADAR to measure speed, although levels of some 3 km/h or 3% are also used in areas of tough enforcement.

As of 1997, Federal standards in the United States allowed a maximum 5% error on speedometer readings (per "Auto Tutor", American Automobile Association of California magazine, Oct. 17, 1997). Aftermarket modifications, such as different tire and wheel sizes or different differential gearing, can cause speedometer inaccuracy.

GPS devices are capable of showing speed readings based on change in position between measurements (usually taken at one-second intervals). As the GPS is an independent* system, its speed calculations are not subject to the same sources of error as the vehicle's speedometer. Instead, the GPS's positional accuracy, and therefore the accuracy of its calculated speed, is dependent on the satellite signal quality at the time. Speed calculations will be more accurate at higher speeds, when the ratio of positional error to positional change is lower. The GPS software may also use a moving average calculation to reduce error.