Stop Curbstoning News

Case Study Puts a Price Tag on Curbstoning

Posted on Tue, Dec 7, 2010

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Curbstoned cars are often cheap, but state and local governments pay a high price. A new case study from Stop Curbstoning reveals the true cost associated with a single curbstoner.

BIRMINGHAM, AL - December 7, 2010 - A recent California Department of Motor Vehicles (DMV) curbstoning investigation ended with a felony arrest on 12 counts of perjury and filing false documentation. But for StopCurbstoning.com, that was just the beginning.

The organization examined the financial impact of curbstoning, using this single real-life case as an example. It found that the cities in which the curbstoner operated lost over $56,000 in sales tax revenues alone, and the state of California lost $168,000. Other financial costs included lost license revenue, lost local business, and potentially increased emergency response burdens due to unsafe vehicles – all from just one curbstoner.

“Because there are so many curbstoners out there, even small things add up to a lot,” says Charles Redden, president of AutoTec, one of the companies behind the effort to stop curbstoning. “Take the annual state license fee for used car dealers. In California it’s $176 for the first year and $126 to renew. But for every thousand curbstoners, that’s over a quarter-million dollars every two years.”

“With local governments increasingly strapped for cash, enacting and enforcing anti-curbstoning laws can be a quick way to boost revenues and enhance their communities at the same time.”

The community enhancement and public safety aspects of enforcing anti-curbstoning laws are harder to quantify, but should not be underestimated, Redden says.

“Getting curbstoned vehicles off the streets frees up parking for local businesses, reduces obstacles to traffic, and eliminates eyesores,” Redden says. “It also eliminates a major source of unsafe vehicles – cars that look okay, but have major structural damage or missing safety equipment. How do you place a dollar value on all that? It’s priceless.”

For more information, see the full case study, How Much Can Just One Curbstoner Cost Your City? For further information about curbstoning and efforts to put a stop to this illegal practice, visit StopCurbstoning.com.

Topics: Stop Curbstoning, curbstoning, Municipalities, Case Study, Selling Private Party

NAAA Joins AutoTec in Push to Stop Curbstoning

Posted on Mon, Jun 28, 2010
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BIRMINGHAM, AL – April 28, 2010 - AutoTec, LLC announced today that the National Auto Auction Association (NAAA) became the latest industry organization to join its fight against curbstoning.national auto auction association supports stop curbstoning, naaa

Curbstoning is the repeated “flipping” of used cars for profit, by unlicensed dealers who often pose as private parties to attract sales. This illegal activity affects hundreds of thousands of consumers annually, defrauding them of value and putting them into unsafe motor vehicles.

“The way I see it, why buy from someone parking on the side of the road?” asks Frank Hackett, Executive Director of NAAA. “You don’t even know if that’s the owner.”

“Curbstoners are just out to make a quick buck,” Hackett says. “People who buy a car from them have nowhere to go if they have a complaint. The curbstoner just disappears. There’s no way to arbitrate.”

Chuck Redden, president of AutoTec, agrees. “Curbstoning isn’t the same thing as a private party sale,” Redden says. “With a genuine private party, you have a home phone number, or at least the seller’s address on the vehicle title. That’s information a curbstoner will either misrepresent, or won’t provide at all.”

“Our mission has always been to help licensed dealers do business more efficiently in the wholesale marketplace,” Redden says. “One big side benefit to our AuctionACCESS product is ensuring that everyone in the auction lanes holds a valid license. That requirement alone denies curbstoners a major potential supply source.”

“AuctionACCESS is the gatekeeper in identifying legitimate dealers,” Hackett adds. “I’m glad to see that the group at AutoTec is trying to educate consumers and others about the dangers posed by curbstoners and the cars they sell. We at the NAAA fully support that goal.”

For more information, or to join the effort to stop curbstoning, visit www.stopcurbstoning.com.


About NAAA
The National Auto Auction Association (NAAA) was founded in 1948. It represents more than 324 auto auctions both domestic and international, with more than 9.5 million units sold each year. The NAAA provides a unified voice for the auto auction industry, protects and promotes the interests of its members, and leads with the highest ethical standards.

Topics: Used Car Buying, curbstoning, NAAA, Press Release, News, Dealer, AuctionACCESS

NADA Supports Efforts to Protect Car Buyers by Stopping ‘Curbstoning’

Posted on Tue, Apr 13, 2010

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Curbstoning is the repeated, unlicensed ‘flipping’ of used cars for profit. It’s a nationwide scam that hurts used car buyers, cities and local businesses. AutoTec is at the forefront of a major effort to halt this fraud.

BIRMINGHAM, Ala. – April 13, 2010 – Caveat emptor – “let the buyer beware” – has long been a phrase associated with buying a used car. This advice is even more relevant today since vehicles are more complex than ever with thousands of electronic sensors, interconnected systems and computer-controlled drivetrains and brakes. nada supports stop curbstoning for consumers buying used cars

On top of that, the Internet provides a lucrative feeding ground for “curbstoners,” or used car sellers posing as private parties to sell cars that often have severe damage or defects hidden beneath a freshly polished exterior. Curbstoning is the repeated buying and selling of vehicles for profit by a person posing as a private seller who does not have a dealer license.

“It’s not the guy putting a ‘for sale’ sign on his own car. It’s the guy with different cars on Craigslist every week,” says Chuck Redden, president of AutoTec, who works closely with states and municipalities to track dealer licenses. “With a curbstoner, you don’t find out there’s a problem until it’s too late. Your money is gone and you have no recourse.”

The Washington, DC-based National Automobile Dealers Association (NADA) says many states limit the number of vehicles private parties can sell in a year before they have to register as used car dealers. In most states, that number is three to five cars or trucks a year.

“Curbstoners skirt the law by not taking title to the cars they sell,” says Redden. “Curbstoners may represent themselves as relatives or friends of the owner to explain a different name on the title.”

“No two used vehicles are alike. Hidden damage could be structural, mechanical or even electronic, which is often harder to detect,” says David Hyatt, NADA vice president of public affairs. “Nowadays, it’s not just a bent frame used car shoppers have to watch out for. It could be a flood-damaged vehicle, a faulty computer connection and sensor or an empty airbag module that pose safety hazards.”

stop curbstoning helps consumers be better educated when buying a car private partyStop Curbstoning” is a nationwide campaign to alert consumers about this fraudulent and potentially dangerous practice. For more information, including ways to detect curbstoned vehicles, visit www.stopcurbstoning.com

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About NADA
About NADA: The National Automobile Dealers Association, founded in 1917, is located just outside the nation’s capital. NADA represents nearly 17,000 new-car and -truck dealers, with about 37,500 franchises, both domestic and international.

Topics: Used Car Buying, curbstoning, Press Release, Private Party, News, NADA

AutoTec Launches Major Initiative to Stop Curbstoning

Posted on Mon, Mar 22, 2010

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Curbstoning is the repeated, unlicensed “flipping” of used cars for profit. It’s a nationwide scam that hurts consumers, cities, and local businesses. Automotive remarketing industry leader AutoTec is at the forefront of a major effort to halt this automotive fraud.

BIRMINGHAM, AL - March 22, 2010 – AutoTec, the company behind AuctionACCESS, has launched a major campaign to stop curbstoning, the unlicensed buying and selling of used cars for profit.Stop Curbstoning

AuctionACCESS already helps stop curbstoners by keeping unlicensed dealers out of the auctions,” says Chuck Redden, president of AutoTec. “The ‘Stop Curbstoning’ initiative is a natural spin-off from that.”

“For over ten years, we’ve been helping licensed dealers do business in the wholesale marketplace efficiently and securely,” Redden continues. “And for all that time, we’ve been hearing concerns about the effect curbstoners have on a retail level. We listened, and felt it was time to put forth a unified, coordinated call to action.”

It’s not just licensed dealers who suffer because of curbstoners. Consumers who buy from curbstoners may find themselves with unsafe, cobbled-together vehicles that can’t be registered or insured like normal vehicles. In addition, such vehicles are typically ineligible for repairs under manufacturer recalls.

“That makes sense, when you think about it,” Redden says. “After all, that particular used car wasn’t built by the manufacturer. It was put together by some salvage guy, using parts from two or three wrecked vehicles, duct tape, and chewing gum.”

“Of course,” Redden continues, “by the time the buyer finds out that their just-bought used car has serious problems, the seller is long gone – and so is the money.”

Redden points out that municipalities also lose out when curbstoners succeed. “Since curbstoners are unlicensed, they’re basically untraceable,” Redden says. “It’s all cash transactions, under the table, and it adds up to a lot of lost tax revenue for cities.”

“This isn’t about the guy selling his old car. It’s about a multi-million dollar business based on fraud. Curbstoners pose as private parties. But they’re not,” Redden says. “Stop Curbstoning is a nationwide campaign to alert consumers about this fraudulent and potentially dangerous practice.”

For more information, including things you can do to protect yourself when buying a used car from a private party, visit www.stopcurbstoning.com.

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Topics: Used Car Buying, curbstoning, Press Release, News, Consumer, Dealer, AuctionACCESS