Avoiding Curbsiders

The majority of used cars in Ontario are sold privately by individuals. Most of these transactions are lawful and legitimate. But if you’re shopping for a used car, be careful to avoid being duped by a curbsider.

 

The curbsider sells from his home rather than from a dealership, giving used-car buyers the impression that he is putting the family car up for sale in a private deal. Buyers are acquiring the car without full awareness of its ownership or accident history.

Bogus reasons for selling:

A curbsider deceives unwary consumers by claiming to be selling his car for any of a variety of fictitious reasons:

●"I'm getting married and need the money."

●"I'm leaving the country."

●"I'm getting a company car."

●"It belonged to my uncle, but he died."

Curbsiders purchase used cars at low prices and then unload them almost immediately at a profit. This is illegal, since they are operating a used vehicle business without being registered under the Motor Vehicle Dealers Act—or have .used false information to become registered. (This allows them to buy vehicles from other dealers or at auctions).

A study done in 2008 by the Used Car Dealers Association of Ontario found that 16.6% of the used vehicle advertisements placed in newspapers and online sites were by curbsiders.

Curbsiding can be a big headache for car buyers. While unsuspecting consumers may believe they are dealing with a legitimate "private" seller who has taken good care of the car, that impression may be completely false.

The vehicle may have been damaged in an accident, badly repaired, sold with a fraudulent odometer reading, have a lien on it, or (worst case scenario) may be a stolen vehicle.

If any of these situations apply, the consumer can’t do much about it. Often, the curbsider will have changed cell phones and vanished well before the buyer discovers what’s amiss.

How to spot a curbsider:

Here are several ways in which to spot, and avoid, a possible curbsider:

● Check whether the name on the vehicle registration is different from that of the seller.

● Ask the seller for a landline number or a work number in order to confirm his identity.

● Compare the registration’s issue date against the seller's claim of how long he's owned the vehicle. If the dates are not in synch, you may be dealing with a curbsider.

● Meet the seller at their residence or their workplace.

● Ask for a Used Vehicle Information Package (UVIP).

● Have a licensed mechanic inspect the vehicle.

Consumers who buy a used car from an Ontario-registered dealer benefit from such protections as vehicle history disclosure and access to the Motor Vehicle Dealers Compensation Fund. But if consumers decide to buy privately, they should at least do their homework so they don’t get scammed by the con artists known as curbsiders. ●

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com