Curbstoning: A Problem for Consumers, Dealers, Law Enforcement and Free Enterprise.

The main purpose of this site is to disseminate valuable information to concerned citizens and the general public. Helping the public become better educated about the circumstances and problems created by curbstoning can only serve to protect the public and create a safer community. If for no other reason, let's just say, this information is placed here as a sincere effort to inform the general public so they can be better prepared to avoid a problem sale.

Curbstoners Park Cars at Gas Stations, Supermarkets, Convenience Stores, on State Right of Ways and Other High Traffic Locations.

Although there are many issues which may warrant more attention, there is none which has caused more grief to the consumer and cause more injury to the reputation of legitimate automobile dealers. This issue is known as the practice of "Curbstoning". "Curbstoning" is a term given to the practice of buying and selling automobiles on a regular basis, but without a dealer license and legally established place of business. Curbstoners" usually buy "low end" vehicles from new or used car dealers, public auctions or salvage and insurance liquidator auctions. They usually do little, if any, mechanical or safety reconditioning before parking them in high traffic locations. Often these locations are on State Right of Ways, Utility or Pipeline Easements, at Gas Stations, Convenience Stores, Supermarket Parking Lots, Public and Private Parking Lots, On the Roadside, on School Property, at Private Homes or any location they chose. To curtail the problem, frustrated absentee property owners will often erect No Parking Signs. In many locations,  the No Parking Signs are frequently stolen. Once this happens,  Curbstoning resumes. It should also be mentioned that Auto body repair shops and other industry personnel make up a large percentage of the violators.  In fact, many curbstoners may hold a dealer license, however, the since the practice of curbstoning violates the Texas Motor Dealer Law and is cause for suspension of said license, the scruples of such a violator should be questioned. 

Curbstoners Park Anywhere They Choose!

Are Curbstoners Criminals? In many cases, the answer is: Yes!

The most common crime committed by Curbstoning is Tax Fraud. When a Curbstoner purchases a vehicle, he or she will usually cause the title to be left blank or "open". This allows the Curbstoner to "skip" his or her name when selling the vehicle to an unsuspecting consumer. (Some States call this "Title Jumping"!) By not having his name on the title, the curbstoner is able to pocket the money (usually cash) and avoid State Sales Tax, Federal Income Tax and any other declarations that are legally required. This is a direct conflict with the American System of Taxation and Free Enterprise. Title Jumping/Skipping also makes it easier for the curbstoner to avoid prosecution in cases of Odometer and Title Fraud.

Curbstoners Do Not Usually Act in a Responsible Manner!

In many cases when the purchaser discovers a problem due to undisclosed errors on the title reassignment, the Curbstoner is usually long gone or doesn't act in a responsible manner when asked to straighten out the problem. If a consumer purchases a vehicle which will not comply with State and Federal Emissions Requirements they may not be able to get the vehicle registered without first spending hundreds of dollars on repairs. Further, serious injury or death could occur if a vehicle is sold with a defective or "removed" air bag. Click Here to learn more about these potentially deadly circumstances.

Curbstoners Commit Fraud!

Curbstoners Often Cause Others To Participate In Their Criminal Activity!

In general, the most common types of Fraud are Odometer Tampering, Undisclosed Salvage Rebuilt Vehicles, Undisclosed Frame Damage, Faulty or Non-existent Air Bags, Flood Damage, Faulty or Removed Emissions Components, Faulty Safety Devices, Faulty Anti-Lock Brake Systems, Mechanics Liens or Promissory Liens and other problems that were not truthfully disclosed at the time of sale. The State of Texas Department of Transportation provides a free database which contains a listing of vehicles which have been flood damaged. The Salvage Vehicles shown here are being curbstoned at a local Exxon gas station. It is common practice for a Curbstoner to pay Gas Station and Convenience Store Clerks for permission to park and, in some cases, keep custody of the vehicle keys in order that it may readily available to prospective customers. Our volunteers have been told that Clerks or Managers receive from $20.00 - $50.00 per day (for parking) plus a commission of as much as $300.00 if the vehicle sells. Such collusion makes Curbstoning an even bigger and heinous crime as often involves persons who are not in a position to say no. In other words, an otherwise innocent clerk may be fearful of losing their job if they do not participate in the illegal curbstoning activity. Curbstoppers would like to mention that it's likely that Exxon Officials had no knowledge that such illegal activity was taking place at this location. We feel  certain they do not approve of this type of offering nor would want a motor vehicle sale of any type to take place from their premises. These pictures are being shown to emphasize the fact that Gas Stations of all types are frequently being used by unscrupulous curbstoner types. For what's it's worth, we have pictures of curbstoner vehicles being offered from almost all types of stations. We chose these pictures because they were of better photographic quality.

Legitimate Dealers Operate From An Established Place of Business!

(Legitimate Dealers never operate from the side of the road.)

We strongly suggests that all consumers should make sure they know who they are dealing with, before, making a purchase. It should be pointed out that legitimate dealers operate only from an established and permanent place of business, always from a permanent location, and never from a parking lot or the side of the road. Any person who sells or offers for sale, more than five vehicles in a calendar year must have a Retail Dealer License. According to Section 503.021 of the Transportation Code, No Person may act as a dealer, either Directly or Indirectly unless they have a Dealer License. This is another way of saying, you can't sell a car which belongs to someone else such as a friend or relative.  In Texas, Dealers are required to secure a $25,000.00 Bond before they are granted a license. Licensed Dealers who offer financing must also have a License from the Office of the Consumer Credit Commission. To obtain such a license the Dealer must go through a lengthy process of identification and a background check which includes fingerprint identification. Legitimate dealers will have no problem in proving they are properly licensed and are likely to be eager to show proof of such license if asked. This is another way of saying; a Dealer who has made the effort to secure a legitimate dealer license should be proud and readily able to prove it.

Curbstoning Creates Problems for Law Enforcement!

Legitimate Dealers are required to verify a purchasers identity and make a timely transfer of vehicle ownership. The Texas Motor Vehicle Dealer Law requires most transfers to take place within 20 days from the date of purchase.  Further, the Dealer Law requires that accurate records are to be kept and be made available to law enforcement authorities upon demand. Legitimate Dealers help to protect the public by making sure that vehicles are properly registered at the time of sale and forward the appropriate amount of Sales Tax. Since Curbstoners usually "hand over" a title (as opposed to making the proper transfer of ownership) a large number of vehicles are being placed in the hands of criminals, uninsured parties, unknown parties such as those trying to avoid child support payments. Unlicensed or otherwise incompetent drivers can easily make a purchase from a curbstoner. Law Enforcement Investigators spend a lot of time tracking down Toll Road Violators and "Hit and Run" Drivers. Just ask any Hit and Run Investigator and they'll likely tell you "Unregistered Vehicles are a Major Problem for Law Enforcement".

All Parties Mentioned or Pictured In This Site Have a right To a Fair Trial and Shall Be Presumed Innocent Until Proven Guilty!