What Is Curbstoning?

Curbstoning is one of the most widespread and least known scams in the used car market. It is illegal in every state. It costs buyers billions of dollars every year in hidden problems, undisclosed damage, and fraudulent titles. And it happens in plain view on Facebook Marketplace, Craigslist, and eBay Motors every single day.

If you have ever bought a used car from a private seller who seemed to be selling multiple vehicles, always had another car ready after the last one sold, or seemed unusually knowledgeable about the trade — you may have encountered a curbstoner.

WHAT IS CURBSTONING?

Curbstoning is the practice of unlicensed dealers posing as private sellers to sell vehicles without a dealer license, avoiding consumer protection laws, disclosure requirements, and tax obligations.

The name comes from the old practice of parking cars on the street curb — appearing to be a private seller while actually operating as an undisclosed dealer. Today it happens primarily online.

It is illegal in all 50 states. Most states define curbstoning as selling more than a specific number of vehicles per year without a dealer license — typically 3 to 5 vehicles, though this varies by state. Penalties range from fines to criminal charges.

WHY CURBSTONERS TARGET YOU

Licensed dealers must comply with the FTC Used Car Rule, which requires disclosure of known defects on a Buyers Guide. They must honor implied warranty laws in most states, disclose salvage, rebuilt, and flood titles, collect and remit sales tax, and maintain business records.

Curbstoners avoid all of this. They sell as-is with no disclosure requirements, pocket the sales tax, hide serious defects, and move on to the next vehicle before a buyer discovers problems. The financial advantage over a licensed dealer is significant — which is why the practice is so persistent.

HOW TO SPOT A CURBSTONER ONLINE

Same phone number appears across multiple vehicle listings. Seller has multiple active listings at the same time. Profile photo is a logo or generic image rather than a real person. Listing uses dealer-style language — clean CarFax, just serviced, fully reconditioned. Seller always seems to have another vehicle available after each sale. Meeting location is always a parking lot, never a home address. Seller is evasive about how many cars they sell per year.

HOW TO SPOT A CURBSTONER IN PERSON

Title is not in the seller's name — they are selling on behalf of someone else. Title is blank-signed — signed by the previous owner but not yet transferred. Seller cannot answer basic questions about the vehicle's history. Seller is at a commercial location or storage facility rather than a home. Seller is vague about where they acquired the vehicle. No bill of sale is offered and seller resists putting anything in writing.

WHY THIS MATTERS FOR YOUR WALLET

Curbstoners typically acquire vehicles at wholesale auction — the same source as licensed dealers. But they skip reconditioning, skip disclosure, and flip the vehicle quickly for maximum profit. The vehicles they sell most frequently are those with hidden problems that would be too expensive or legally complicated to disclose.

Common issues on curbstoner vehicles: undisclosed accident damage, salvage or rebuilt titles washed through state transfers, odometer rollbacks, flood damage masked with interior cleaning, and mechanical failures that emerge within days of purchase.

Because curbstoners present as private sellers, you have almost no legal recourse when problems emerge. Private sales are almost universally as-is in the eyes of the law.

HOW TO PROTECT YOURSELF

Check the title before you buy anything: the title must be in the seller's name. A blank-signed title or a title in a different name is a red flag — walk away.

Search the phone number: copy the seller's phone number and paste it into Google along with the word cars. If multiple listings appear, you are looking at a curbstoner.

Run the listing through Auto Scam Guard: our AI flags dealer-style language used by private sellers, pricing patterns consistent with wholesale flipping, and other curbstoning signals.

Pull Carfax and AutoCheck: multiple auction records, frequent ownership changes, or a title history that does not match the seller's story are all red flags.

Get an independent inspection: a mechanic can identify reconditioning work, fresh paint, and mechanical issues that a curbstoner hoped you would miss.

SOURCES

Federal Trade Commission. Buying a Used Car from a Dealer. consumer.ftc.gov. Better Business Bureau. Virtual Vehicle Vendor Scams Study 2024. bbb.org. National Insurance Crime Bureau. nicb.org. FTC Used Car Rule — Buyers Guide Requirements. ftc.gov.