TL;DR
Curbsiders are unlicensed dealers who pose as private sellers to avoid consumer protection laws. They often sell problem vehicles with hidden issues. Search the seller's phone number, verify ownership, and run a RegoVerify vehicle history report before buying from any private seller.
What is curbsiding?
Curbsiding is the practice of buying and reselling vehicles for profit without holding a motor dealer licence. The term comes from the practice of parking cars on the curb with a "for sale" sign — but today most curbsiders operate through online marketplaces like Facebook Marketplace, Gumtree, and Carsales.
Curbsiders pose as private sellers to avoid the obligations that come with being a licensed dealer: consumer warranties, disclosure requirements, vehicle inspection obligations, and accountability through a licensing authority. By presenting themselves as private individuals simply selling their own car, they sidestep all of these protections.
The vehicles they sell are typically bought cheaply at auction or privately — often because they have mechanical problems, accident history, or other issues. The curbsider does minimal cosmetic work to make the car look presentable, then resells it at a markup without disclosing the underlying problems.
Why buying from a curbsider is risky
When you buy from a licensed dealer, Australian Consumer Law provides a safety net. Dealers must provide statutory warranties on vehicles under a certain age and price, disclose known defects, and operate under a licensing authority that can investigate complaints. None of this applies when you buy from a curbsider posing as a private seller.
- No statutory warranty. Private sales are generally "as is" — once you pay, the vehicle is your problem. Dealers must offer warranties; curbsiders do not.
- No disclosure obligation. Licensed dealers are required to disclose known defects. A curbsider has no legal obligation to tell you about mechanical issues, accident history, or odometer discrepancies — though misrepresentation can still be prosecuted.
- Hidden problems. Curbsiders typically buy vehicles with known issues — failed roadworthies, high kilometres, accident damage — and sell them without repair or disclosure. The cosmetic presentation may look fine, but the underlying problems remain.
- Difficult to trace. If something goes wrong after the sale, a curbsider may be impossible to contact. They often use temporary phone numbers, register vehicles in other people's names, and have no fixed business address.
Private sale protections are limited
Even in a legitimate private sale, your consumer protections are limited compared to buying from a dealer. This is why due diligence — including a vehicle history report and pre-purchase inspection — is especially important when buying privately. For more on the differences, see the private sale vs dealer guide.
How to spot a curbsider
Curbsiders work hard to appear as regular private sellers, but there are telltale signs that give them away:
- Multiple vehicles listed. Search the seller's phone number on Google, Facebook Marketplace, and Gumtree. If the same number appears on multiple vehicle listings — whether current or recent — the seller is likely operating as an unlicensed dealer.
- Generic photos. Curbsiders often take quick, generic photos — no personal belongings visible, no home or driveway context. The photos may look like they were taken in a commercial setting or empty lot.
- Will not meet at their home address. Legitimate private sellers typically show the vehicle at their home. A seller who insists on meeting at a shopping centre, petrol station, or other public location may be hiding the fact that they have multiple vehicles on a property.
- Cash only, no paper trail. Curbsiders prefer cash transactions because they leave no trail. Reluctance to provide a receipt or use a traceable payment method is a warning sign.
- Vague ownership history. If the seller cannot clearly explain how long they have owned the vehicle, where they bought it, or provide service records, they may have only recently acquired it for resale.
- Name does not match the registration. Ask to see the registration certificate. If the seller's name does not match the registered owner, ask why. There may be a legitimate explanation, but it is also a red flag for curbsiding.
Legal position on curbsiding in Australia
Operating as a motor vehicle dealer without a licence is illegal in every Australian state and territory. The specific legislation varies:
- NSW — Motor Dealers and Repairers Act 2013. Unlicensed trading can attract fines up to $110,000 for individuals.
- VIC — Motor Car Traders Act 1986. Consumer Affairs Victoria actively investigates unlicensed trading complaints.
- QLD — Motor Dealers and Chattel Auctioneers Act 2014. The Office of Fair Trading enforces licensing requirements.
- WA — Motor Vehicle Dealers Act 1973. The Department of Mines, Industry Regulation and Safety handles complaints about unlicensed dealers.
- SA, TAS, NT, ACT — each has equivalent motor dealer legislation prohibiting unlicensed trading with associated fines and penalties.
Additionally, the Australian Consumer Law (ACL) applies nationally. Curbsiders who misrepresent vehicles or engage in misleading conduct can be prosecuted by the ACCC or state fair trading agencies regardless of their licensing status.
How to verify a private seller is legitimate
Before proceeding with any private sale, take these verification steps:
- Search the seller's phone number on Google, Facebook Marketplace, and Gumtree — multiple vehicle listings are a red flag
- Check the seller's marketplace profile — new accounts with little history and only vehicle listings are suspicious
- Verify the seller's name matches the name on the registration certificate
- Ask to see the vehicle at the seller's home address — not a neutral location
- Ask how long they have owned the vehicle and request service records or receipts
How to protect yourself
Whether the seller turns out to be a genuine private seller or a curbsider, these steps protect you either way:
- Run a vehicle history report to check for finance owing, write-off history, stolen flags, and registration status
- Get an independent pre-purchase inspection from a qualified mechanic — do not accept the seller's inspection or roadworthy certificate at face value
- Ask for a receipt that includes the seller's full name, address, the sale price, and the vehicle details
- If the seller refuses to allow inspections, provide documentation, or meet reasonable requests, walk away
If you believe you have bought a vehicle from an unlicensed dealer, report it to your state's fair trading or consumer protection agency. Your report helps authorities track and prosecute curbsiders, protecting other buyers.
For a comprehensive overview of scams targeting used car buyers, including curbsiding, see the used car scams guide. For more on your rights when buying from a dealer versus a private seller, see consumer law and used cars.
FAQ
Frequently asked questions
What is curbsiding?
Curbsiding is the practice of buying and selling vehicles for profit without holding a motor dealer licence. Curbsiders pose as private sellers to avoid the licensing requirements, consumer protections, and statutory warranties that apply to licensed dealers. They typically buy problem vehicles cheaply, do minimal cosmetic work, and resell them at a markup.
Is curbsiding illegal in Australia?
Yes. Operating as a motor vehicle dealer without a licence is illegal in every Australian state and territory. The specific legislation and penalties vary by state — for example, in NSW it falls under the Motor Dealers and Repairers Act, while in VIC it is covered by the Motor Car Traders Act. Penalties can include significant fines and criminal charges.
Why is buying from a curbsider risky?
Buying from a curbsider is risky because you lose the consumer protections that come with buying from a licensed dealer. There is no statutory warranty, no cooling-off period, and no dealer obligation to disclose known defects. Curbsiders often sell vehicles with hidden mechanical problems, undisclosed damage, or unclear histories. If something goes wrong, you have limited legal recourse.
How can I check if a private seller is actually a curbsider?
Search the seller's phone number on Google and marketplace platforms — curbsiders often have multiple vehicles listed simultaneously. Check the vehicle's registration certificate to see if the seller's name matches the registered owner. Ask how long they have owned the vehicle and why they are selling. If the seller is vague, cannot provide service records, or seems overly experienced at selling cars, proceed with caution.