The calling cards of ‘curbsiders’
A curbsider is someone who misrepresents themselves in the private sale of an automobile.
In 2017, following an investigation by the Ontario Motor Vehicle Industry Council (OMVIC), an Ottawa man was convicted of illegally selling motor vehicles.
In this case, the man sold vehicles that had been written off by insurance companies to unsuspecting buyers. According to OMVIC, many of these vehicles’ airbags had been deployed and the seller did not replace them, nor did he inform the buyers that their airbag needed replacing.
The man was charged with “curbsiding” for operating as a dealer without registration. He pleaded guilty to 36 counts of curbsiding. He was fined $40,000 and sentenced to two years of probation.
This is not the only time OMVIC has charged an individual for curbsiding. OMVIC has laid hundreds of charges over the years, leading to dozens of convictions (including some prison sentences).
Curbsiding is an illegal activity in Ontario. A curbsider is someone who misrepresents themselves in the private sale of an automobile, often concealing key information about a vehicle to a potential buyer, such as odometer tampering, stolen vehicle status, undisclosed accident history and mechanical deficiencies.
It is estimated that up to 25 per cent of all “for sale by owner” ads online are placed by curbsiders. A curbsider advertisement is difficult to identify beside legitimate ads by “for sale by owner.” At first glance, these ads, and individuals posing as owners, may appear honest and trustworthy, but appearances can be deceiving.
Formed in 1997 (with help from the Trillium Automobile Dealers Association), OMVIC is a self-managed body that regulates and monitors the activities of registered motor vehicle dealers and protects the rights of consumers. OMVIC administers and enforces the Motor Vehicle Dealers Act (MVDA) on behalf of the Ministry of Government and Consumer Services.
To sell vehicles for a profit in Ontario, the seller must possess a valid Dealer Licence (issued by OMVIC) and hold a valid Vendor Permit (issued by the Ontario Ministry of Finance). This licence and permit are to ensure that sellers operate within legal guidelines and to protect consumers against fraudulent activities.
The risk for car buyers is the lack of consumer protections when purchasing a vehicle privately. However, when someone buys a pre-owned vehicle from a registered dealer, they are protected by Ontario’s consumer protection legislation and the Motor Vehicle Dealers Compensation Fund. On the OMVIC website (omvic.on.ca), there is information about curbsiders, and tips to reduce the odds of becoming the unwitting victim of one.
If you are planning to buy a vehicle privately, here are some indications that you may be dealing with a curbsider:
Seller insists on meeting in public, not at a private address;
The price of the vehicle appears too good to be true;
No vehicle history report is available;
Vehicle is unplated and/or uninsured (ruling out the opportunity for a test drive);
Refusal of vehicle inspection by purchaser’s mechanic;
Seller’s name doesn’t match ownership (ask to see seller’s driver’s licence and compare);
Refusal to provide receipt or proof of purchase;
Request for a deposit/payment in full via a wire transfer prior to delivery.
The retail automobile industry is one of the most heavily regulated industries in Canada.
Dealers invest considerable resources to ensure that their business activities are compliant, transparent and accountable, and that customers are treated fairly.
Consumer protection is just one of the many benefits in choosing a dealership when buying a pre-owned vehicle, as opposed to buying privately.
Don’t become a victim of a curbsider — understand the risks involved in buying from a private seller so that you can make an informed buying decision. This column represents the views and values of the TADA. Write to president@tada.ca or go to tada.ca.
The risk for car buyers is the lack of consumer protections when purchasing a vehicle privately