Scammed at the Curb: Inside a common Craigslist car scam

It’s a scam you probably don’t know about, but you should certainly be aware of. It’s called curbstoning , defined by the Arizona Department of Transportation as the repeated, unlicensed flipping of used cars for profit.

Arizona resident Jose Jovel fell victim to this scam a few years ago when he took $7,000 out of his 401K to buy a 2004 Chevy Tahoe, only to discover there was a hold on the title. This means he couldn’t register it and therefore couldn’t drive it.

“I became suspicious after the person who sold me the car wasn’t answering my phone calls,” said Jovel.

Since there was a hold on the title, the vehicle never should’ve been sold in the first place. He also discovered the odometer had been tampered with after the car stopped working.

“A lot, a lot of problems,” said Jovel. “The day after, the car started stuttering and jittering.”

Jovel was caught in a typical curbstoning scam. Since the sale of the Chevy Tahoe was fraudulent, the title was eventually released to him and the car officially became his.

The Arizona Department of Transportation (ADOT) said the dealer who sold him the car, not only didn’t have a license but was selling more than 40 vehicles a year. In Arizona, you are only allowed to sell six over a 12-month period if you don’t have a license. The penalty is up to $3,000 per car.

“You can also face criminal charges,” said ADOT Public Information Officer Ryan Harding.

ADOT only has enforcement operations in Pima and Maricopa counties, which means when it’s happening in Yuma County, it can go unnoticed if it’s not reported.

“It happens under the radar,” said Sergeant Lori Franklin with the Yuma Police Department.

ADOT conducted a total of 250 curbstoning investigations in 2015 and found that in 15 percent of those cases, vehicles were being sold by unlicensed dealers.

“They [an unlicensed dealer] might take the title to a title-owned company and get money from the title-owned company,” said Harding. “And then take that same title and sell it to an unsuspecting buyer off the street and get money from the buyer.”

The Yuma Police Department stresses that car shoppers need to be extra careful since it’s hard to keep track of what a private seller is doing.

“Unless it’s a flag that comes from the Motor Vehicle Department,” said Franklin. “It’s kind of hard for us to get a hold on that.”

There are two critical steps curbstoners can take to stay away from curbstoners. First, do your homework about the vehicle before buying it. Secondly, conduct the transaction at an MVD office or an authorized third-party office.

“Make sure you can take possession of the vehicle immediately,” said Harding. “Also make sure it’s in the condition that’s being advertised.”

ADOT encourages all consumers who fall victim to this scam to call the ADOT Fraud Hotline at 877-712-2370. For consumers who fall victim to the scam in California, the fraud complaint form is available on the DMV website.