by Andrew Rohrlich
If you're in the market for a new car, purchasing a vehicle that is for sale by owner is a great option that's often significantly cheaper than buying from an auto dealership. But it's important to approach private sales safely to avoid certain risks that can come with buying from a private seller.
One such risk is curbstoning. It's a term that most people have never heard but one that's crucial to know if you're planning to buy a car. This guide will help you understand curbstoning so you can buy from a private seller with confidence.
What Is Curbstoning?
Curbstoning is a form of car fraud that mainly targets inexperienced buyers. It involves an unlicensed dealer disguising themselves as a private seller, buying a vehicle, and then reselling it at an artificially inflated price without disclosing any existing problems.
The seller often takes steps such as repair work to make the vehicle appear more presentable. This makes it difficult for unsuspecting buyers to detect this type of fraud.
These unscrupulous dealers often buy cars with severe water damage, mechanical issues, salvaged titles, or rolled-back odometer readings. They may even go so far as to repair the vehicle just enough to pass cursory inspection standards to convince unwary buyers that it is in good condition.
They sell these cars without adhering to state laws or regulations —such as lemon laws, which protect consumers from purchasing defective vehicles.
Is Curbstoning Even That Common Today?
Unfortunately, curbstoning is prevalent today. The number of cases involving vehicle fraud through curbstoning has increased substantially in recent years as people often turn to private sales for more affordable vehicles.
Despite the potential for fraud, buying a car from a private seller can still be a great option and can be perfectly safe if you know what to look out for. With the right tools and knowledge, you can easily spot the signs of a curbstoner.
How To Avoid Curbstoning Scams
Most lemon laws safeguard consumers from auto dealers and non-private sellers. Unfortunately, some dealers try to sidestep these laws using a curbstoning system because many people don't know how to report it.
The good news is that you can prevent yourself from becoming a victim of curbstoning by taking the proper steps to protect yourself from such schemes.
Here are some tips on how to stop curbstoning:
Know and Look for Any Red Flags
Consider this scenario: You're in the market for a used vehicle and you spot a decent-looking car for sale in a parking lot. You pull into the lot and call the phone number written on the car.
The owner comes to meet you almost immediately. They're extremely personable and all seems well. Eventually, you settle on a price for the car and begin the process of paying. But one of these strange situations happens:
- The seller pulls out the title but it bears another person's name.
- The title denotes the dealership as "seller."
- The seller requests that you follow them to the adjacent dealership, where someone else will assist you with the paperwork.
- The seller declines your request to inspect the vehicle before completing the purchase.
If any of these situations happen, you're probably dealing with a curbstoner. Licensed dealers won't pose as normal sellers to sell you a car or conduct business from parking lots. Avoid such situations that facilitate curbstoning, and always ensure you're dealing directly with a legit car owner or a licensed dealer.
Verify the Seller's Identity
Verifying the seller's identity is important to make an informed decision and avoid being scammed. Therefore, you should conduct a background check before getting into business with them.
The internet provides a great way to do this, as it can give you access to details such as their phone number and email address that you can use to trace other relevant information.
Even if the seller appears legitimate, you should also ask to see their dealer's license if you are purchasing the car from a dealer. That way, you can confirm the person is authorized by the state to conduct this business, giving you peace of mind when making your payment.
Background checks don't just apply to vehicles that are for sale by owner. They apply to dealers too. You should always use independent sources to verify the reputation of any auto dealership, as well as seek out reviews from previous customers who have transacted there.
Also, make sure that whatever agreement you come to has some kind of protection against fraud or theft. For example, ask for copies of a driver's license or passport before sending the money to the account they give you, either in cash or through a service like PayPal or Venmo.
Inspect the Vehicle Yourself or Have It Inspected Before Purchasing
Inspecting the vehicle is a critical part of purchasing a used car. Unfortunately, curbstoners have a history of luring and pressuring unaware buyers to complete their purchase without an inspection. You can avoid being curbstoned by requesting an inspection before you purchase a vehicle from a private seller.
A pre-purchase inspection conducted by a trusted mechanic can uncover any hidden issues the seller does not disclose and protect buyers from purchasing a lemon.
A pre-purchase vehicle inspection usually costs around $200, but this fee can be higher or lower depending on the type of car and the technician doing the inspection. Regardless, have an experienced mechanic inspect the vehicle before signing any paperwork with the seller. This can provide valuable insight into possible problems and help you make an informed decision about whether or not to purchase the car.
During a pre-purchase inspection, the mechanic will check for any signs of physical damage or rust and inspect all mechanical components, such as brakes, tires, suspension systems, engine and transmission fluids, hoses, and belts. The technician will also look at safety features like airbags and seatbelts to ensure they are working properly. Furthermore, they may conduct a diagnostic test on all electronic systems, including audio equipment and navigation systems, to verify they are functioning correctly.
A reliable mechanic can also estimate the vehicle's value based on its current condition. This will allow you to negotiate or walk away if necessary. Always find a technician with experience inspecting used cars so they can adequately assess their worth compared to similar models in good condition.
Avoid any seller who demands you buy their vehicle without conducting an inspection. Reputable sellers understand that potential buyers need to feel comfortable in their purchase decision by having all the necessary information before signing anything and finalizing their purchase agreement.
Review the Car's History and Maintenance Records
One of the simplest ways to avoid a curbstoning scam is to review the car's history using a vehicle identification number (VIN). Check to review your prospective car's history to ensure that each aspect of the car meets proper standards. A background vehicle history report on your potential car helps you know the state of the car you're planning to buy and whether it meets the required standards.
Websites such as AutoCheck and CARFAX offer insightful vehicle history checks at a fee. You should check the vehicle's detailed history report to get information and facts about different aspects of the car, such as rolled-back odometers, title liens or salvage titles, the maintenance schedule, and past owners.
If a seller claims that the vehicle they're selling has a clean title or they were the only owner of the car, but the report states otherwise — walk away.
Ask the Seller the Right Questions
When buying a used car from a legit car owner or licensed dealer, asking questions is essential to ensure you make the right choice. Here are some important questions:
- How long has the seller used the vehicle in question?
- Does the seller have clear maintenance records?
- Why are they putting the car up for sale?
- Has the vehicle ever been involved in an accident?
- Is the owner or dealership's name on the title?
- Can a pre-purchase inspection be conducted?
- Will other third parties participate in the transaction besides the vehicle's owner?
These questions will help you gather crucial evidence about the car's ownership and history. Be careful when transacting with individuals who claim to be selling a car for a "close friend" or "family member." While some people may sell their cars through a close friend or relative who understands how the car business works, curbstoners also use this method.
If the seller claims to be selling the car for a family member, transact in the presence of the person in question and ensure that their details, including driving license, match the car's title.
A Safe and Secure Private Party Vehicle Checkout Solution
Curbstoning is a major issue that many car buyers must be aware of when purchasing a vehicle from a private party. Unfortunately, it is still quite common today, so it's important to take the necessary steps to avoid becoming a victim of this scam.
Knowing what to look for and verifying the seller's identity can help protect you from falling prey to an unscrupulous seller. Inspecting the vehicle yourself or having it inspected before purchase, reviewing its history and maintenance records, and asking the right questions about the car can also help ensure that you make an informed decision with your purchase.
This article was written by Andrew Rohrlich. As a brand and product marketing expert, Andrew Rohrlich has crafted products, experiences and communications for household names like Gap and for multiple automotive technology businesses. For nearly a decade Andrew has studied automotive retail in depth from a customer point of view and aggregated the industry’s best research, thought leadership and know how to provide credible and important information to auto shoppers and sellers.
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