Curbstoning
Be proactive, educate the public, and help GIADA stomp out curbstoning.
The problem
What is a curbstoner?
Curbstoning is the sale of used vehicles by unlicensed dealers who pretend to be private sellers to get around the rules. Their customers often end up with damaged, dangerous or uninsurable vehicles, and by then the curbstoner is long gone with the cash. Curbstoning is illegal in many states, yet it cheats thousands of unwary buyers every year.
Curbstoners are scam artists. State laws prohibit private citizens from selling multiple cars, or vehicles not titled to them, to protect consumers from unlicensed, unscrupulous sellers. Curbstoners often sell vehicles reputable dealers won't touch: ones with hidden problems that affect both their safety and their value.
Every case is different. Some are easier to fix than you'd think; others are hard. Education and diplomacy play a big part, and what worked in one case may not work in the next, so it makes sense to have more than one way to pursue a remedy.
Georgia law
Our anti-curbstoning law
Georgia House Bill 144, GIADA's anti-curbstoning bill, became law on July 1, 2007 (O.C.G.A. § 40-2-39.1 (opens in a new tab)). It was a huge milestone, and every licensed dealer in Georgia has benefited. The law gives the guidelines and the teeth needed to fight curbstoning. GIADA has worked hard to educate the officers charged with enforcing it, and in the end the actions of law enforcement will decide how well we defeat curbstoning.
The law is part of Title 40 (motor vehicles and traffic), so any city, county or state law enforcement officer can enforce it. Officers can ticket the vehicle owner, the property owner and even the person leasing the property. Fines run from $100 to $1,000 for each violation, and/or up to 12 months in jail.
What you can do
Working with property owners and the police
A couple of things to consider
- Police departments aren't concerned that you, the dealer, collect and remit sales tax on every sale, or that you carry business insurance, a bond and signage and play by the rules.
- The law lets officers write tickets and have vehicles towed, but it doesn't make them do it. Walking into the police department and demanding they enforce the curbstoning law probably won't work. You don't want to be seen as a troublemaker in your community, especially in a smaller town. Treat your officers with respect: you need them to help fight curbstoning.
Visiting police departments around the state, we've found they have a lot in common. To get their attention, talk about what they care about: public safety and quality of life in their community. Curbstoning puts public safety at risk. In almost every community, vacant lots and private business parking lots fill with cars for sale, especially on weekends, and these are prime spots for crime: drug dealers and money launderers would rather buy a car from an individual than from a legitimate dealer, and stereos and wheels get stolen there.
When curbstoning happens on commercial property, the best approach is to talk to the property owner, or the business's owner or manager. For a chain store, like a parts store, start with the store manager, and if that doesn't work, the corporate office. GIADA can help draft a letter from us, and in some cases you may want to stay anonymous.
Digital pictures are very good evidence, especially when they capture the seller's phone number. Pictures don't lie.
Dealers who curbstone
Report a dealer involved in curbstoning
If you know of a dealer involved in curbstoning, call or email GIADA. It seems to happen more with newer dealers who can't afford a proper place of business with a display area. It's very serious when a dealer is caught curbstoning: it undermines everything GIADA did to get the anti-curbstoning laws passed. Get pictures, addresses and any other information you can, and GIADA will contact you and take it from there.