Auto Dealer Scams: Curbstoning Fraud

curbstoning fraud

Curbstoning is among car scams practiced by the fraudulent dealers who pretend to be private sellers.

How does this scam work?

Most likely you have a street or parking lot near your residence where there are several cars on sale. You might probably assume that these cars are put on sale by private sellers. But the fact is that “curbstoners”, auto dealers who could not sell it in their lots, place  place most of them in public view. Chances are high that many of these curbstone vehicles are lemons or junk cars.

Car dealers use this technique as a way to go around state laws. States have enacted legislation that defines how many cars a private individual may buy and sell in a certain period of time without having to be a licensed auto dealer. Curbstoners avoid getting licensed since they will have to meet certain requirements in order to stay in business.

Today curbstoners have developed a new way of selling cars illegally- the Internet that makes it easier for them to conceal their identity and location from buyers and government agencies. eBay, AutoTrader, AutoMart have become the preferred sites for sellers who are looking to scam unsuspecting buyers. These scammers use various scamming methods while conducting their online sales as affinity fraud. They use  low-resolution photos that can easily hide cracked windshields, dents, faded paint, rust, and scratches.

Simply remember that a buyer who purchases a used car from an unlicensed seller runs a risk that:

  1. The vehicle may be stolen, salvaged, reconditioned, or flood damaged.
  2. The vehicle may have been sold for export only.
  3. You may get a title-washed vehicle with a rolled-back odometer.

If you have come across car scams contact a The Margarian Law Firm at (818) 553-1000.