Chapter 11

AVOIDING CURBSIDERS
11.01 Learning Objectives 11.04 Steps to Avoid Selling
11.02 What Do You Know? to Curbsiders
11.03 Introduction 11.05 Summary
11.06 Test Yourself

11.01
Learning Objectives
After completing this chapter, you will understand:
1. The definition of “curbsiders”
2. Steps that can be taken to ensure dealers don’t sell
vehicles to curbsiders

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 11.02
What Do You Know?
Try answering these questions to test your knowledge:

1. What is a curbsider?
2. What are common problems with the vehicles curbsiders sell?
3. Studies have shown the percentage of “private” vehicle ads that are
actually placed by curbsiders is:
a) Five per cent
b) 10 per cent
c) 20 per cent
d) 25 per cent

Keep these questions in mind as you read through the following section.

11.03
Introduction
Curbsiders are illegal unlicensed dealers. They are in the business of selling
vehicles, but often pose as private sellers. Commonly, the vehicles curbsiders
sell are in someone else’s name, and curbsiders often misrepresent themselves
and the vehicles they sell. Regularly, some curbsiders buy insurance
“write-offs” and “fix” them up. Often, those repairs are substandard and the
SOME STUDIES vehicles remain unroadworthy, but a phony structural repair certificate and
have shown 25 per cent of all
Safety Standards Certificate (SSC) may hide this; the vehicles are then sold to
“private” classified vehicle
unsuspecting consumers, often with no disclosure of the vehicle’s true history.
ads are posted by curbsiders.
These vehicles may pose a danger to the purchaser and anyone who shares the
road with him or her.
Curbsiders tarnish the retail automotive industry, and consumers who unwittingly
buy from them are not protected by any consumer protection legislation. These
illegal sellers pose a very real risk to the car-buying public and OMVIC spends
a considerable portion of its resources investigating and prosecuting them.
Often curbsiders are dealers whose licences have been revoked or who have
been refused registration. Curbsiders have an unfair competitive advantage over
registered dealers because they ignore tax laws and avoid the overhead expenses
incurred by registered dealers and, in some instances, curbsiders compete
with dealers for the same customers. Unfortunately, many dealers willingly,
or with willful blindness, routinely provide curbsiders with inventory, selling
them vehicles they don’t want on their used lots. This is illegal. Regrettably,
the Ontario Motor Vehicle Industry Council’s (OMVIC’s) investigations have
revealed that most curbsiders obtain their inventory from dealers.

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 Chapter 11
AVOIDING CURBSIDERS

11.04
Steps to Avoid Selling to Curbsiders
There are a number of easy steps dealers can take to ensure they are not selling
vehicles to curbsiders.
Register the vehicle in the buyer’s name. Many curbsiders are able to escape
detection by not registering vehicles in their own name. They simply take the
signed vehicle permit from the seller and register it directly into a buyer’s name.
Dealers can stop this practice by ensuring all vehicles they sell are registered in
the name of the buyer before they release the vehicle. Dealers should also check
the identification of the buyer to ensure they are registering the vehicle in the
correct name.
Be cautious when selling to an unknown dealer or wholesaler. If a buyer claims
to be a dealer or wholesaler, ask to see their OMVIC registration certificate.
By law, they must present it to anyone asking to see it. If there are concerns
the registration certificate is not valid or is expired, dealers can check it on the
OMVIC website: https://www.omvic.on.ca/RegistrantSearch/index.aspx.
Check the garage register. Dealers should conduct periodic checks of their
garage register. Does the same purchaser’s name appear numerous times? Can
this be explained? Be vigilant.
Establish a zero-tolerance policy. A dealer should make it clear to the managers
and staff of their used car department that selling to curbsiders is forbidden.
The dealer may find himself or herself facing charges or a discipline hearing and
the possibility of significant fines for selling to a curbsider.

11.05
Summary
What is a Curbsider?
Curbsiders are in the business of selling vehicles, yet
they pose as private sellers. Very often the vehicles
they sell are seriously misrepresented.
It is illegal for registered dealers or
salespersons to supply vehicles
to curbsiders. Dealers can
help prevent this by ensuring
all vehicles are registered
in the buyer’s name and
periodically checking the
garage register.

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 11.06

Test Yourself
The first questions below are the same questions
asked in “What Do You Know?” at the beginning of
REMEMBER: this chapter. Try answering these questions again and
The questions on the
Automotive Certification
compare your results with your earlier answers.
Test are in multiple-choice Then, answer the additional questions.
format only. This manual,
however, contains a variety of
1. What is a curbsider?
question formats to help you
understand the content, such 2. What are common problems with the vehicles curbsiders sell?
as activities, assignments, 3. Studies have shown the percentage of “private” vehicle ads that are actually
multiple-choice questions, placed by curbsiders is:
true-false questions and a) Five per cent
fill-in-the-blank questions. b) 10 per cent
c) 20 per cent
d) 25 per cent
4. Curbsiders:
a) Ignore tax laws
b) Avoid overhead
c) Have an unfair advantage over registered dealers
d) All of the above
Refer to Appendix 1 for the
5. List three steps a dealer can take to avoid selling vehicles to curbsiders.
correct answers. Review the
relevant section of the
chapter for any question
you answered incorrectly.

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