Small Business Owners in LA Fight Curbstoning and Win
Posted on Thu, Jul 14, 2011
Shopkeepers in parts of Los Angeles are finding it hard to combat "pop-up" car markets that take up parking spaces for days. Some of these unlicensed dealers dropped off vehicles two or three at a time. And when one vehicle goes out for a test drive, they quickly pull another vehicle into the space so as not to lose valuable turf. Meanwhile, customers for those shops can't find parking.
So the City of Los Angeles passed a law that bans parking any vehicle with a "For Sale" sign on specific streets that have been known to gather curbstoners. A similar law that attempted to ban "For Sale" signs city-wide was struck down, but the new law is narrower.
We applaud Los Angeles for taking firm steps to fight curbstoning. And, we think the city should also go after sales tax and business license revenue, especially focusing on those unlicensed dealers selling multiple vehicles. Curbstoners are often hard to track at the state DMV because they "jump title" - that is, they never take title so the vehicle is transferred directly from the previous owner to the new buyer with no trace of the curbstoner's involvement. Curbstoners pay no license fee, no rent, no tax, no insurance. They have no liabilities. Only profit.
Meanwhile, the local businesses - and not just used car dealerships - are losing customers and money, and the city is bleeding revenues that are owed but not collected. How much can one curbstoner cost a city? Read our special report.
Read: "Complaints Lead to Ban on Pop-Up Car Markets" from The New York Times