What Is Curbstoning?
Photo by Łukasz Nieścioruk on Unsplash
Imagine this scenario. You find a car listing online and meet the seller in the mall parking lot. Everything seems fine, so you make the purchase, but a few weeks later, the engine throws a rod. Annoyed, you call the seller, only to find that they’ve disappeared. Now you’re stuck with a clunker, and a stranger has made off with your money in a curbstoning scam. So, what is curbstoning?
What is curbstoning, exactly?
Curbstoning is when a person who doesn’t have a dealer license behaves like a car dealer. But curbstoners don’t just set up a car dealership and hope the authorities don’t notice. Instead, they pretend to be private sellers, which helps them to fly under the radar.
Each state sets its own limit for how many cars a non-dealer can sell in a single year. Usually, this is between three and seven. Any additional sales require licensing. By circumventing the licensing process, curbstoners are able to sell as many cars as they want — as long as they don’t get caught.
When you’re dealing with a curbstoner, you’re dealing with a criminal. And sometimes, it can be tough to determine who you’re really dealing with.
Curbsoners usually list their vehicles on Craigslist and other similar online classified sites. They like to meet in public places that can’t be tied back to them, and they may not even use their real name. All of this is done for a purpose: to make them difficult to track down.
So far, this may sound like a minor bureaucratic violation. Who cares if your seller isn’t licensed, as long as you’re getting a good deal?
Unfortunately, it’s nearly impossible to tell whether you’re getting the deal you want. Curbstoners won’t offer a vehicle history report and will usually back out of the sale if you want to run one. They may even intentionally sell vehicles with serious mechanical issues. After all, it’s not like they’ll be held responsible if anything goes wrong.
What is curbstoning? It’s a dangerous, illegal practice that puts you and your family at risk.
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Why is curbstoning bad for customers?
It’s no secret that car salespeople don’t always have a glowing reputation. We all recognize the stereotype: they’ll tell you all about how they just changed the brake pads or how they just changed all the fluids. Meanwhile, the pads are clearly rusty, and the dipstick comes out black.
There’s some truth to this stereotype, so it makes sense that many people prefer to deal with a private seller. Not only are you cutting out the middleman, but you can do business with a relatable person.
Curbstoners take advantage of people’s natural aversion to car dealers by posing as a private seller. But there are a couple of reasons why buying from a licensed dealer is a wiser choice.
First off, curbstoners don’t have to meet the same standards as legitimate dealerships. Car dealers have to pay licensing fees, and they have to meet certain state standards. For example, most states have “lemon laws” that protect buyers whose cars fail within a certain period of time.
If a dealer doesn’t comply with the lemon law, they won’t just be facing civil penalties — they can also lose their license and be forced out of business. This gives legitimate dealerships a solid incentive to stay on the right side of the law.
Second, if you do get cheated by a licensed dealership, you have legal recourse. If a dealer refuses to perform a warrantied repair, you can take them to court. If they aren’t truthful about a vehicle’s condition, you can report them to the DMV.
Curbstoners, on the other hand, take elaborate measures to make themselves difficult to find. If you try to track them down after the sale, you’ll often find that you received a false address and a burner phone number.
Finally, curbstoners are also not being fair to legitimate dealers. Dealerships have to pay money for commercial retail space, licensing, labor law and environmental compliance, and a host of other costs.
This is all perfectly reasonable, as long as different dealers are all competing on a level playing field. Because curbstoners can avoid these costs, they can beat legitimate businesses on price. What is curbstoning to car dealers? Unfair and dishonest competition.
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What should I do if I suspect someone is curbstoning?
A curbstoner isn’t just going to tell you they’re curbstoning. If you ask them, they’ll either laugh at the suggestion or bail on the sale. But there are a few telltale signs that you might be dealing with a curbstoner. Here are a few of them:
The seller doesn’t want to meet at their home or business. Curbstoners don’t want you to be able to find them after the sale. They’ll usually try to meet in a public place, somewhere like a mall or public transport lot that can’t be traced back to them.
Be wary of these sellers. One exception is if your city or county has a police-designated location for safe online sales. If there’s one place a curbstoner does not want to do business, it’s right in front of the police!
The seller doesn’t want to give you a vehicle history report. Some private sellers may simply be unwilling to pay for a report themselves. In that case, ask them if you can see the VIN plate and run a report yourself.
A vehicle history report is cheap and can provide you with essential information like accident records. If the seller doesn’t even let you run your own report, walk away.
The title isn’t in the seller’s name. To avoid tax — and to have their business tracked — curbstoners will usually transfer a title to you directly from whoever sold it to them.
If asked, they’ll usually make up a story about how they’re selling the car for their mom or their brother. In this case, ask to see that person before you make the purchase. Never buy a car without at least seeing and speaking to the person whose name is on the title.
Look for multiple listings. If a seller is setting off your alarm bells and you’re not sure why look for their phone number or email address on Craigslist and other sites. If you see multiple vehicles listed by the same individual, you’re possibly dealing with a curbstoner.
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