
“Curbstoning” is the repeated, unlicensed “flipping” of used cars for profit.
Curbstoning is illegal in most cities. What’s more, curbstoners put
consumers at risk, release unsafe vehicles onto the streets, hurt local
businesses, and deny local governments the fees and tax revenue they
need to provide essential public services.
Because enforcement
resources are spread thin, it’s up to car buyers to be informed,
automotive dealers to be proactive, and municipalities to
be responsive.
Would you buy a used car from a dealer who had no license, no permits, no liability insurance, and not even a business address?
That’s what you’re doing when you buy a car from a curbstoner.
The
term “curbstoning” comes from the practice of parking automotive
“inventory” along the curb, although many curbstoners also use vacant
lots and unmonitored parking lots as temporary places of business.
Curbstoners
are car “flippers” – people who regularly buy cheap cars, fix them up
to look decent, and sell them for a quick profit. They often pose as the
car’s owner, but they’re not – so they can dodge limits on the number
of vehicles an individual can sell before having to register as a
dealer.
Curbstoned vehicles may be lemons, salvaged, or even
cobbled together from parts from the wrecking yard. They may have been
written off as total losses by insurance companies due to collision,
flood, or other damage.
Sometimes, unethical used car dealers use
curbstoning as a way to get rid of duds they can’t sell on their lots.
Once
you buy a curbstoned vehicle, you have nowhere to turn if the car
develops problems. If the problems are serious enough, the car may fail
inspection or be denied insurance coverage. And, the law requires you to
disclose the problems when you sell the car.
According to ABC
News, experts estimate that 80% of the used cars in classified ads are
not being advertised by individual owners. And, some state licensing
officials say that as many as one in five cars sold outside a commercial
automotive dealership are curbstoned.
It is up to you, as a
buyer, to make an informed purchase. We’re here to help!
