Automotive

Private seller doesn't have registration. Red flag?

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  • Feb 25th, 2020 7:02 pm
Deal Addict
Jul 28, 2007
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Private seller doesn't have registration. Red flag?

So we are car shopping and this is the third time this has happened. The private seller is trying to sell a car without showing us they have the car registered in their name. Twice the sellers said they cancelled it so they could transfer plates to their new vehicle.

How big a red flag is this? Should I not purchase unless they can prove they have ownership? This seller says he threw out the old registration, but only threw out the part that would have your name on it.
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Deal Addict
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Apr 22, 2013
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Run and run fast.
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Jul 7, 2017
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I'd take a picture of the VIN and look it up to see if it is reported stolen.
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Apr 21, 2004
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I am selling a car and both permit portion and transfer portion have my name.
Deal Addict
Jul 28, 2007
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thriftshopper wrote: I'd take a picture of the VIN and look it up to see if it is reported stolen.
Clean carfax, no stolen vehicle reports.
Deal Addict
Jul 28, 2007
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JeganV wrote: Run and run fast.
Is there anything that would satisfy you (or anyone else) in terms of proving ownership? Would an old registration be enough?
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Sep 8, 2017
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GTA
It's called curb-siding, and it's illegal.

They buy the car to resell. If they registered it in their name, then they would have to pay sales tax. And that kills their profit margin.
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Jul 28, 2007
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derass wrote: It's called curb-siding, and it's illegal.

They buy the car to resell. If they registered it in their name, then they would have to pay sales tax. And that kills their profit margin.
Ah. Would it be ok to purchase it if I got them to register it in their name?
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Ideally they should transfer it to their name. But it's not entirely necessary. You can register it with any name on the registration. As long as you have a bill of sale to go along with it. Which would have to be forged in this case, because the registered owner isn't even involved in the sale at this point.
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Jul 28, 2007
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derass wrote: Ideally they should transfer it to their name. But it's not entirely necessary. You can register it with any name on the registration. As long as you have a bill of sale to go along with it. Which would have to be forged in this case, because the registered owner isn't even involved in the sale at this point.
But I would be liable if the registered owner came to make a claim on it, right? It hasn't been reported stolen but could it later be?

If the curbsider re-registers it in their name would I be protected from liability?
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Apr 22, 2013
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Dunderhead wrote: Is there anything that would satisfy you (or anyone else) in terms of proving ownership? Would an old registration be enough?
Any proper owner should have zero troubles providing a current ownership. They either have it, or if they somehow lost the original have no trouble getting a new one from Service Alberta. The big red flag is they're selling a car and lacking critical documents necessary to sell it. They should've had it before putting it up for sale.
- Jegan V
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JeganV wrote: Any proper owner should have zero troubles providing a current ownership. They either have it, or if they somehow lost the original have no trouble getting a new one from Service Alberta. The big red flag is they're selling a car and lacking critical documents necessary to sell it. They should've had it before putting it up for sale.
Yeah I can't believe this is the third time this has happened but maybe curbsiding is more prevalent than I thought.

They all had stories about buying new cars for bigger families etc, and they all seemed believable (or maybe I am gullible). I'm just wondering if they re-register the car in their name before we buy if I would be protected from future liability. Like what happens if a stolen car is registered and then sold to someone new? Does Service Alberta take any of the responsibility?
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Sep 8, 2017
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That's a good question. But I don't know if I have a very good answer.

In private used car sales, mutual trust is required. One example is that the seller will turn over the vehicle, keys, and signed registration when they receive payment, and vice versa. Another aspect of trust would be that the seller doesn't go and report the car stolen between the time you take possession and change the registration. What if you paid in cash? What binds the agreement? A hand-written bill of sale? What if they claim you forged that?

You never met the registered owner, you don't know what they're like. The same thing could even happen between you and the curbsider even if they do register it in their name. Call me prejudice, but if they're a curbsider, they're probably not trustworthy.

My advice would be to pass on this vehicle. I'm sure there are others out there. You can't trust the seller, and you don't know how it was treated. Does it come with full service records? Probably not. But most importantly, you don't want to enable the curbsiding behavior. It's bad for consumers. And if they aren't declaring the income (which I'm sure they aren't), it's bad for the prosperity of our country (tax dollars).
Deal Guru
Oct 6, 2007
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What comes to mind to me, is what if there are liens on the car that surface later? What recourse would you have? I'd keep shopping.
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Dunderhead wrote: They all had stories about buying new cars for bigger families etc, and they all seemed believable (or maybe I am gullible).
Look up origins of the term, "con man" or "con artist".
I smile when I see container ships sailing past my house laden with stuff made in China
Deal Addict
Jul 28, 2007
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derass wrote: That's a good question. But I don't know if I have a very good answer.

In private used car sales, mutual trust is required. One example is that the seller will turn over the vehicle, keys, and signed registration when they receive payment, and vice versa. Another aspect of trust would be that the seller doesn't go and report the car stolen between the time you take possession and change the registration. What if you paid in cash? What binds the agreement? A hand-written bill of sale? What if they claim you forged that?

You never met the registered owner, you don't know what they're like. The same thing could even happen between you and the curbsider even if they do register it in their name. Call me prejudice, but if they're a curbsider, they're probably not trustworthy.

My advice would be to pass on this vehicle. I'm sure there are others out there. You can't trust the seller, and you don't know how it was treated. Does it come with full service records? Probably not. But most importantly, you don't want to enable the curbsiding behavior. It's bad for consumers. And if they aren't declaring the income (which I'm sure they aren't), it's bad for the prosperity of our country (tax dollars).
Great answer, thanks so much. I am going to pass on this one.

God I hate shopping for used cars though. The good private deals are sketchy and the dealers seem to price exorbitantly.
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Dunderhead wrote: God I hate shopping for used cars though. The good private deals are sketchy and the dealers seem to price exorbitantly.
I hear ya. I visited almost 10 sellers that had the car I wanted. Most of them were used car dealers. Those were all terrible experiences. The cars were in poor condition, priced high, the dealers didn't know anything about their history (they get them from auction), and didn't have any service records. The last seller I visited was a middle-aged married couple. They had bought it new. I viewed the car at their house, they showed me the new car that was replacing it, and they had all the service records. The car was the best condition and lowest price of any I had looked at. I decided right then I was going to buy it. They had the UVIP and safety certificate ready, we went to the bank together to handle payment, we signed the ownership in their kitchen, and they offered to drop the car off at my place.

So I guess the moral of the story is, keep looking until you find a good seller. Whether that be a private individual, or a licensed car dealer.
Last edited by derass on Feb 22nd, 2020 6:46 pm, edited 2 times in total.
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Apr 22, 2013
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Dunderhead wrote: God I hate shopping for used cars though. The good private deals are sketchy and the dealers seem to price exorbitantly.
It sucks on this front, but if you're patient you'll come across some real people who just want to get as much for their car as they can. Its probably easier to take these on with a more business-like demeanor, no emotion, waste no time and get all critical information. The moment something doesn't seem right, quit and leave it. Perhaps change up a bit of your ad inquiries and not seek the absolute bottom, find a modest middle of the road ad of the car you're looking for and negotiate it down to the price you'd like.
- Jegan V
Deal Addict
Sep 8, 2017
4695 posts
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GTA
JeganV wrote: It sucks on this front, but if you're patient you'll come across some real people who just want to get as much for their car as they can. Its probably easier to take these on with a more business-like demeanor, no emotion, waste no time and get all critical information. The moment something doesn't seem right, quit and leave it. Perhaps change up a bit of your ad inquiries and not seek the absolute bottom, find a modest middle of the road ad of the car you're looking for and negotiate it down to the price you'd like.
It helps if they price the car fairly. I had no problem paying the seller's asking price because it was already less than what the used car dealers were asking, with less km's, and in better condition.

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