CAPITULO II: MARCO TEORICO
2.3. Bases Teóricas.
11.02 What Do You Know?
11.03 Introduction
11.04 Steps to Avoid Selling
to Curbsiders
11.05 Summary
11.06 Test Yourself
11.01
Learning Objectives
After completing this chapter, you will understand:
1. Th e defi nition of “curbsiders”
2. Steps that can be taken to ensure dealers don’t sell
vehicles to curbsiders
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 vehicles remain unroadworthy, but a phony structural repair certificate and Safety Standards Certificate (SSC) may hide this; the vehicles are then sold to unsuspecting consumers, often with no disclosure of the vehicle’s true history. 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 Often curbsiders are dealers whose licences have been revoked or who have been refused registration.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
SOME STUDIES
have shown 25 per cent of all “private” classified vehicle ads are posted by curbsiders.
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AVOIDING CURBSIDERS
Chapter 11
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.
11.06
Test Yourself
The first questions below are the same questions
asked in “What Do You Know?” at the beginning of
this chapter. Try answering these questions again and
compare your results with your earlier answers.
Then, answer the additional questions.
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
4.
Curbsiders:a) Ignore tax laws b) Avoid overhead
c) Have an unfair advantage over registered dealers d) All of the above
5.
List three steps a dealer can take to avoid selling vehicles to curbsiders. Refer to Appendix 1 for thecorrect answers. Review the relevant section of the chapter for any question you answered incorrectly.
REMEMBER:
The questions on the Automotive Certification Test are in multiple-choice format only. This manual, however, contains a variety of question formats to help you understand the content, such as activities, assignments, multiple-choice questions, true-false questions and fill-in-the-blank questions.
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