You found a car listed by a private seller. The price looks good. The seller seems friendly. But is this someone selling the car they drove for years, or someone who sells cars for a living and doesn't want you to know it?
There is a name for the second kind. It's called curbstoning.
Stephon, who owns Car Pro Inspections and still inspects cars himself, was talking about how our technicians deal with sellers when he named the ones to watch: "dealers pretending to be private sellers, these are the ones you got to kind of be more cautious with."
What curbstoning is
The Minnesota Attorney General's office puts it simply: "A curbstoner is an auto dealer who engages in a brisk business of buying and selling used vehicles in large quantities but doesn't bother to get a proper license." They "attempt to fly under the radar by posing as private sellers," with cars parked on the street or in parking lots and ads on free classified sites.
The same page is fair about the rest: "Most private sellers are honest individuals who simply want to sell their decent used car privately rather than trade it in." This post is not about them. It is about telling the two apart.
Why it matters to you
A licensed dealer has rules to follow. Under the FTC's Used Car Rule, a dealer must put a "Buyers Guide" on each used car offered for sale, and the rule calls it deceptive for a dealer "to misrepresent the mechanical condition of a used vehicle." A curbstoner sells like a dealer and skips all of that.
The Minnesota Attorney General lists what can go wrong. Curbstoners "may not hold title to the vehicles they sell," so you may not be able to get or transfer the title. Some roll back odometers. Some sell "previously wrecked, salvaged, or stolen vehicles without warning." And "some curbstoned vehicles have had the bare minimum repairs necessary to make them appear to be in working order."
Where Georgia and Florida draw the line
There is no single number that makes someone a dealer everywhere. Here is what the rules say where we work.
Florida. State law says anyone who "buys, sells, or deals in three or more motor vehicles in any 12-month period," or offers or displays three or more for sale, is presumed to be in the business of selling cars (Florida Statutes 320.27). There are exceptions, such as someone selling, in good faith, cars they bought for their own use. But three in a year is enough to raise the question.
Georgia. Many people believe you can sell up to five cars a year without a dealer license. The Georgia Secretary of State answers that one directly: "NO - that is not a true statement." If you sell cars with the intent to make a profit, you need a dealer license. The five-car figure, it says, is "a standard that the Department of Revenue uses to flag someone as a possible unlicensed dealer."
Federal. The FTC's Used Car Rule counts someone as a dealer after "selling or offering for sale five (5) or more used vehicles in the previous twelve months."
This is general information, not legal advice. The point for a buyer is simple. Someone who sells car after car is a dealer, whatever the listing says.
The signs, and why one alone proves nothing
The Minnesota Attorney General lists six clues:
- The vehicle is priced well below market value.
- The seller's name is not on the vehicle's title.
- The seller's name or phone number appears more than once on a website or in the classifieds.
- The seller asks you to meet somewhere other than their home.
- The vehicle is for sale on a roadside or in a parking lot.
- The seller doesn't own the vehicle, or says they are selling it for a friend or relative.
Read how the page frames them: "If you see more than one of the following clues, you may be dealing with a curbstoner." More than one, and "may."
One sign alone proves nothing. Plenty of honest sellers would rather meet in a public place. People really do sell a car for a parent or a friend. A low price can just mean someone needs to sell fast. Look for several signs together, and then look at the car.
What to check
Check things you can see, not things you are told. Two questions can show you how far to trust what you are told.
- The title. Ask to see it. Is the seller's name on it? Does the VIN on the title match the VIN on the car?
- The phone number. Search it. If the same number shows up on several car listings, that is one of the clues above.
- The records. The Minnesota Attorney General notes that curbstoners "flip a high volume of cars very quickly and oftentimes do not have maintenance records."
- The history. Run a vehicle history report. It shows what was reported, which is a start, not the whole story. More on what a clean report can't tell you.
- The car itself. The Minnesota Attorney General's advice is to have a mechanic inspect the vehicle.
What an inspection adds
An inspection can't tell you who the seller is. It tells you what the car shows today, whoever is selling it.
One of our certified technicians comes to the vehicle, on a dealer lot or in a private seller's driveway, and inspects it engine to underbody. Every inspection includes a mechanical and safety check, a dealer-level diagnostic scan (availability varies by make and year), VIN verification, photo documentation, and a road test when the seller allows it and it is safe and legal to drive. Enhanced and Elite add Accident Investigation and the Panel-by-Panel Repaint & Body Filler Check.
That matters most for the "bare minimum repairs" the Minnesota Attorney General warns about. A quick fix can make a car look ready. The inspection checks the car itself, not how it looks in the listing.
And keep the Minnesota Attorney General's last piece of advice in mind: "if something doesn't seem right, don't buy the vehicle!"
Buying from a private seller in the Atlanta or Orlando area? Call us at 833-644-0800 and talk it through before you buy. Then book your inspection at carproinspections.com.
Quick answers
What is curbstoning? A dealer selling cars without a license while posing as a private seller. The Minnesota Attorney General calls a curbstoner "an auto dealer who engages in a brisk business of buying and selling used vehicles in large quantities but doesn't bother to get a proper license."
How can I tell if a private seller is really a dealer? Look for more than one sign: the seller's name is not on the title, the same phone number is on several listings, the car is parked on a roadside or in a lot, the price is far below market, or the seller says it belongs to someone else. One sign alone proves nothing.
How many cars can you sell in Florida without a dealer license? Florida law presumes that anyone who buys, sells or offers three or more vehicles in any 12-month period is in the business of selling cars (Florida Statutes 320.27), with some exceptions.
Can you sell five cars a year in Georgia without a dealer license? Not if you are selling for profit. The Georgia Secretary of State says "NO - that is not a true statement" and that selling with the intent to make a profit requires a dealer license.