Crooks Don't Need a Curb to be a Curbstoner
Posted on Wed, Oct 13, 2010
A woman in Columbia, SC lost $1,500 to a man who claimed to be an auto dealer, right on the lot of a public auto auction.
A lot of things looked right about the deal – she had his business card, and, as the deal progressed, she received documentation including a contract, purchase agreement, and bill of sale. She even test-drove the car, a 2000 Toyota Camry, at the auction site. But, after she gave him $1,500 as a down payment, he said he needed to have her car serviced at his dealership, gave her a loaner vehicle, and vanished.
Despite the apparent paper trail, she was unable to track him down – as were police and news investigators.
Before you suggest that she simply keep the loaner vehicle, keep in mind that she holds no paperwork on it. Registering it in her name and securing the title may be all but impossible, assuming the title is clean to begin with. If the loaner vehicle turns out to have been stolen, she could even be held criminally liable.
This story illustrates the dangers of dealing with individuals selling used cars any place outside of a dealership setting. The consumer protections enjoyed when purchasing from a licensed used car dealer at an established business location simply vanish when buying a car on the street or in a parking lot.
It also reveals the dangers of attending public auto auctions in search of bargains. Here’s the inside scoop: most licensed used car dealers get their vehicles from wholesale auctions that are closed to the general public. These auctions get the cream of the crop: the executive lease returns, brand-name fleet sales, and factory-certified vehicles. The public auctions get the leftovers – the “as-is” sales, salvage titles, “lemon law” returns, and outright wrecks sold for parts.
In addition, access to public auctions is not tightly controlled – they are, after all, public. So, almost anyone can get in with little or no verification of his or her real identity.
The moral of the story: Be careful when buying a used vehicle. Curbstoners are everywhere – including places nowhere near a curb.
What about auto brokers – individuals who say they can locate the car of your dreams? In most states, licensed auto brokers arrange a transaction between a buyer and a licensed dealer – they’re prohibited from selling directly to buyers.