Curbstoning In Maryland State

When you buy a used car from a private party, there is always the possibility that you are purchasing it from a "curbstoner," or someone who is in the business of selling used cars but does not want you to know. The curbstoner would like you to believe they are a private individual selling their vehicle. Why do street vendors try to pass themselves off as private sellers? A license is required for anyone who sells automobiles. Consumers are protected from fraud and abuse by licensing laws. Curbstoners do not have automobile sales licenses. They try to pass themselves off as private sellers, so you won't complain to consumer protection agencies or licensing authorities if you have problems with the car you bought. Learn more about how this scheme works to avoid curbstoning.

What Is Curbstoning?

Curbstoning occurs when an unlicensed dealer sells a used car while posing as a private party to avoid regulations such as inspecting the vehicle, paying taxes, and registering it. A curbstoner could get away with selling vehicles declared salvaged by insurance companies or involved in a flood to unsuspecting buyers. Even though it is illegal, an alarming number of people are victims yearly. Curbstoners sell cars without permits, a dealer's license, or a permanent location. Unscrupulous auto dealers may offer their used vehicles from a parking lot, curb, or in front of a residence to disguise their illegal transactions as private sales, a practice known as curbstoning. Car dealers who engage in curbstoning violate the buyer's right to use consumer protections such as federal warranties and state lemon laws. Curbsiders sell damaged or salvaged used cars to buyers and then disappear. Consumers who buy vehicles from curbstoners have no way of contacting the seller, leaving them with worthless or dangerous vehicles and problems.

The Issues With Buying From A Curbstoner

Curbstoners purchase vehicles at low prices from salvage yards, auctions, and private sellers. These vehicles could be wrecked SUVs, flooded used cars, or junked SUVs. The vehicles are unfit for public sale, and the unlicensed dealers who sell them perform little to no mechanical repairs or safety checks. These unsafe-to-drive used cars end up on eBay, Craigslist, pop-up lots, or by the side of the road with a "For Sale" sign after some cosmetic work. Authorities recently confiscated a curbstone SUV sold with misaligned doors, unsafe frame welding, and no airbags as an example of a curbstone purchase. You risk purchasing a used car with the odometer rolled back, undisclosed frame damage, a salvage title, or mechanics' or promissory liens if you do not buy from a reputable dealer. Illegal used car sales endanger you and the general public by putting dangerous motor vehicles on your neighborhood's streets and roads. Curbstoners rob honest, licensed dealers of sales and governments of tax revenue.

The Risk

Purchasing from a curbstoner increases the likelihood of being unable to transfer a title. A curbstoned sale might appear to be a "steal," but it could be a previously wrecked vehicle, one with a "rolled back" odometer, or even a stolen vehicle. Curbstoners violate state and federal laws, and any transactions with them are not protected. According to industry experts, curbstoners are responsible for many used car online classified ads. Curbstoners can sell several vehicles in a few weeks of illegal sales, which is why curbstoning is such a big problem. Look for red flags that the seller is a curbstoner before making an offer on a used vehicle. If used vehicles appear unexpectedly in unexpected places, such as parking lots or by the side of the road, this could be a big red flag of curbstoned vehicle sales in your area. When a phone number or contact information is provided on a "For Sale" sign, be cautious of matching the information with other used cars for sale in the area. Multiple used vehicles for sale without proper documentation raise a red flag and may be considered curbstoning. Popular used car selling sites that provide free advertising, such as Craigslist, may reveal the same phone number for several private party sellers; if this occurs, avoid the transaction as it is most likely a curbstoning scheme.

Curbstoning Prevention Tips

The following tips should help you avoid purchasing a curbstone vehicle before you buy a used car:

Do Not Purchase Off the Road

If you come across a car on the side of the road with a "Buy Me" or "For Sale" sign, don't expect the transaction to be perfect right away. It's possible that the car has been abandoned for a long time, and a curbstoner is attempting to make the transaction appear legal by using the shopping mall parking lot.

Be Wary of Online Classified Ads

Some classified ads feature curbstone vehicle sellers trying to sell quickly to get their money. The price is frequently exorbitant if an unlicensed seller advertises a car for sale. Look up the seller's phone number first, and if you find other vehicle ads with a similar number, it's a sign that the seller deals in curbstone cars.

Request the Car Title

Before you pay for a used car, get the title certificate and double-check that the name on the title matches the name on the seller's ID. The information on the title certificate should not be trusted because it could have been tampered with. If the names don't match, the vehicle could be a curbstone.

Find the Phone Number

Call the phone number that appears alongside the vehicle listing. If the receiver responds, "which of the cars?" "it means the seller is an unlicensed dealer evading taxes and selling multiple cars that may be severely damaged.

Inspect the Car

Typically, a curbstoner will not allow you to perform any checks on the vehicle. Before making any payments, try to have the vehicle inspected by a reputable mechanic. If you are dealing with a seller who lives far away, you can hire an agency to inspect the car and send you reports.

What To Do If You're A Victim Of Curbstoning

If you believe you have been a victim of curbstoning or that an auto dealer is pretending to be a private party seller to avoid legal obligations, seek legal counsel as soon as possible. You may be able to recover any money you lost by filing a civil claim against the seller or car dealership. Report the details of your transaction to your local law enforcement or the Department of Motor Vehicles (DMV), as they may want to look into potential criminal charges. Reporting a curbstoning scheme also aids in preventing other car buyers from making the same mistake.

Afterword

Curbstoning can happen to you, but don't let the prospect of being duped deter you from looking for a car. When buying a used car, look for a legitimate advertisement, whether online or in person. Many legitimate private party sellers are willing to negotiate their prices so that you get a good deal. Make sure to thoroughly research the make and model of the vehicle you want to buy, so you know what to look for when you see it in person. Read customer reviews and call your insurance company to determine how much it would cost to insure the vehicle monthly. Run a vehicle history report on your desired vehicle (VIN) using the vehicle identification number. A vehicle history report will notify you of any accidents, floods, or other circumstances that may dissuade you from purchasing that vehicle. Take a test drive and have an independent purchase inspection performed by a certified mechanic. If everything looks good, make your best offer, write the check, and drive away satisfied.