Friday, May 23, 2008

Curbstoning Scams

Cubstoners are trying to get around the law by selling their cars on the street by pretending to be private sellers

Curbstoning is the practice of auto dealers masquerading as private parties when selling their cars. Curbstoning car dealers use the practice as a way to sell inferior cars to unsuspecting consumers. There is probably a street or parking area near your residence where there are numerous cars for sale. Many of these cars are placed in public view by "curbstoners", so named because they are parking the cars along a curb. Many of these curbstoned cars may very well be lemons car dealers can't sell on their lots.





Crooked auto dealers use curbstoning as a way to circumvent state laws regarding the sale of cars. States have limits regarding how many cars a person may buy and sell in a given period without having to be a licensed car dealer. Licensed car dealers have requirements that they have to meet to stay in business. Curbstoners do not.


The Internet is mass producing a new crop of curbstoners

The Internet is proving to be fertile ground for curbstoners. The Web makes it very easy for sellers to conceal both their identity and location from buyers and government agencies that try to track them. Auction giant eBay ( www.ebay.com ) has become the favorite stomping ground for people looking to scam unsuspecting buyers.


How curbstoning scams work

Before a curbstoner can scam a buyer, they must have a lousy car to sell. These cars are typically acquired at the low rent auto auctions held at wrecking yards and towing company impound lots. These cars are then "readied" for sale which is to say that they are made to look like a decent car despite numerous problems.

Many of the cars are placed on eBay ( www.ebay.com ), but they can also appear at autotrader.com ( www.autotrader.com ) and other similar sites. These scammers use many other scamming techniques while conducting their online sales with affinity fraud being one of the more popular methods. Another popular tactic is to use low-resolution photos. Poor quality photos easily hide cracked windshields, dents, rust, scratches, and faded paint.

No comments:

10 Most Popular Stories on Digg

Hot on Blinx