If you're planning on buying a used car from an
individual make sure you know who you are dealing with. There is a
thriving black market among unlicensed dealers posing as private
sellers. These people buy and sell used cars without regard to laws
or government regulations.
While you may be told the car you're buying is their personal
car, or their husbands or wives, it more likely is one they
purchased recently with the intent to resell. Unlicensed dealers,
known as curbstoners because they operate from any curbstone on the
street, obtain their inventory from public auctions, salvage yards,
private sellers, and even car dealerships. They usually buy cars
that need repairs, perform only the most basic repair to obtain a
quick sale, then sell the car to an unsuspecting public. Curbstoners
have no concern for customer satisfaction because they will be
nowhere to be found after you hand over your money.
Getting a legal judgment against one of these guys after a sale
goes bad is almost impossible. They cover their tracks and hide
behind false identities. But even if you do track one of them down
it's not likely they have any assets for you to recover.
Curbstoners often deal in cars that have been salvaged due to a
crash, flood or theft. Always run a CARFAX on any car you are
planning on buying from a private seller. This will also alert you
to any odometer fraud that may be going on, another curbstoner
favorite.
It pays to know who you are dealing with when you buy a car from
an individual. The biggest advantage to buying from someone you
know, or someone who you were referred to by a friend, is that you
can verify the history of the car.
Not all private sellers are out to scam you, and you can usually
get a great car for a lower price than your local dealership by
buying from a private party. Just make sure that you can confirm a
few things about the car and the seller. Trust but verify.
How to verify that you're dealing with a true private seller and
not an illegal, unlicensed dealer.
Inspect the vehicle's title. It should be titled in the name of
the person you are buying from (ask for ID). The title will indicate
when the vehicle was purchased. If it was just bought recently
that's a red flag.
Ask to see maintenance records. This will also confirm how long
they have owned it.
Beware of anyone who insists on meeting you in a parking lot
somewhere. If they don't want you to know where they live or work
there is likely a reason.
Always verify the car's history with CARFAX. Look for any recent
activity. If the car was offered for sale at a car dealership or
involved in an accident recently that is a red flag.
If you're dealing with a legitimate private seller they should
have no problem with verifying facts about the car and themselves.
But, if the seller becomes defensive or stonewalls your requests
them they probably have something to hide.
