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Dealer?s and consumer?s agree that ?curbsiding? is a major problem!
A ?curbsider? is a person or group who is in the business of buying and selling automobiles without being licensed and registered with OMVIC (Ontario Motor Vehicle Industry Council), the group that oversees and polices the automobile industry in Ontario.
The phrase ?curbsider? likely originated from individuals placing ?for sale? signs along the side of the roads (i.e. on ?curbs?) where they had ?set up shop.? Many ?curbsiders? disappear a few weeks or even a few days, after a sale has been made. A "curbsider" operates illegally without paying taxes and without licensed persons or premises.
It?s important to note that a "curbsider" is not a private citizen selling his or her own personal vehicle.
"Curbsiders" vehicles most often come from collision centers, impact auctions (auctions of damaged vehicles) or other provinces, and may even be stolen.
Many stolen vehicles have the VIN (Vehicle Identification Number) replaced by thieves with an identical VIN from a vehicle in another province. Several years ago, authorities discovered more than 50,000 vehicles with the same VIN registered in more than one province.
A new car dealer only deals with reputable sources. In Ontario, consumers purchasing a vehicle from a car dealer are also covered by the most comprehensive consumer protection legislation that exists anywhere in North America. This same protection is not afforded to a consumer who purchases a vehicle from a ?curbsider.?
In fact, even if you purchase your vehicle from a legitimate private seller, this protection does not apply. When buying privately, a vehicle could pass the required safety standards inspection, yet still have many problems that are not covered by that certification. If problems do occur, there is little recourse except perhaps through small claims court ? and that can involve a lot of time and expense.
If you were unfortunate enough to have purchased from a "curbsider" but were successful in obtaining a judgment, you may still have a real challenge trying to collect on it.
Many ?curbsiders? do business through automotive classified ads. These ads look like those used to sell a privately owned automobile. You might believe you can save money through this transaction, but the opposite is frequently the case. Unfortunately, the true costs of the transaction may end up far greater than the initial price tag on the vehicle?.BE CAUTIOUS!!
Studies show that as many as 28% of private-sale vehicle ads in Ontario are placed by ?curbsiders,? which means that you have a one in four chance of dealing with one.
Don MacAndrew has been an OMVIC investigator for the past six and a half years. A former detective with the Metro Police for 27 years and an investigator with the Ministry of Consumer and Corporate Relations for 11 years, he deals exclusively with finding and prosecuting ?curbsiders.? During that time, MacAndrew helped OMVIC lay over 6,000 charges involving more than 900 "curbsiders." In fact, all of OMVIC?s chief investigators are former police officers, which gives them a unique perspective and a wealth of experience in dealing with such matters.
?Most scams involve cars that have been in accidents,? says MacAndrew. ?They have been totally written off by the insurance company (approximately 90,000 vehicles in Ontario are written off each year) and are subsequently purchased at auctions by ?curbsiders.? The external visual damage is usually repaired at a body shop and then ads are placed in newspapers and magazines to sell these vehicles. These ads may claim that the vehicle for sale is a one-owner used car. However, the selling price is far beyond what that previously damaged vehicle is actually worth.?
Another major "curbsider" scam involves odometer roll-backs. This means, the odometer reading of a vehicle is ?rolled back,? thus increasing the perceived value of that vehicle. ?This usually involves individuals purchasing vehicles out of the province,? says MacAndrew. ?Let?s take a van that?s two years old as an example, but has a lot of kilometers on it, say 200,000. A normally driven van might accumulate 20,000 or 30,000 kilometers in one year. The "curbsider" purchases these heavily-driven vehicles quite cheaply. Then suddenly the vehicle re-appears in Ontario, the odometer is rolled back to a normal kilometer figure, and this bumps up the supposed value of the vehicle by $4,000 - $5,000. The "curbsider" makes a neat little profit,? states MacAndrew.
The unsuspecting consumer may only discover the repairs or odometer tampering when he or she has the vehicle inspected by a professional technician, or when it requires some warranty work by their new car dealer. At which time, it?s discovered that the 60,000-kilometer warranty expired and when in fact there were actually 200,000 kilometers on the van. Also, any remaining manufacturer warranties could be voided if the vehicle had been written off by the insurance company and subsequent repairs had been made.
These are just two of the more common scams (out there.) My advice- Insist that you get an official Used Vehicle Information Package (UVIP) before you buy. This tells you the vehicle?s history, lien registrations and ownership details. When purchasing privately always have your mechanic inspect the vehicle.
Finally, for your own protection and peace of mind, compare and shop at a car dealership when buying your next used vehicle. Take advantage of the built-in consumer protection that is only offered by a new car dealership.
?Curbsiders? beware . . . we?re all watching you!
Next week, I?ll tell you what to look for and how to protect yourself when purchasing a vehicle from a private individual.
Until next week, remember, YOU are in the driver?s seat.
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