Curbsiding: How to spot an illegal car dealer

CTV Ottawa: Buyer beware Ottawa man pleads guilty to illegally selling cars, many with missing airbags.

Ontario's motor vehicle sales regulator is sounding the alarm about so-called "curbsiders," after an Ottawa man was fined $40,000 for illegally selling rebuilt write-off cars, some of which were missing airbags.

Ahmad Moussa, sole director of the Quality Motors repair shop in Ottawa, pleaded guilty to 36 curbsiding-related charges last month, according to the Ontario Motor Vehicle Industry Council. He was fined $10,000 due immediately and an additional $30,000, to be paid over a two-year period. He was also sentenced to two years of probation, during which he is prohibited from selling vehicles.

OMVIC says Moussa rebuilt dozens of wrecked vehicles he purchased at salvage auctions from 2013-2016, then resold them without a licence to do so. The vehicle regulator says that, in some cases, Moussa removed deployed airbags and did not spend the $1,500-$2,000 necessary to replace them. Instead, he sold the vehicles without informing consumers that the airbags had been removed.

"He was disclosing that these vehicles had been in accidents and had been repaired," Terry O'Keefe, communications director for OMVIC, told CTV Ottawa. "But we know of at least seven vehicles where, after the vehicle was repaired, airbags that had been deployed in the accident weren’t replaced, and the consumers weren't aware of that."

CTV Ottawa attempted to speak to Moussa about his guilty plea, but he repeatedly declined and threatened to call the police.

"I have no interest in talking to you so hit the road," he said.

Curbsiding explained

OMVIC says Moussa is an example of curbsiding, which involves unlicensed car dealers posing as private sellers so they can unload questionable vehicles on trusting consumers.

Curbsiders often misrepresent themselves to their customers and are also known to misrepresent the vehicles they sell, either by concealing their accident history, hiding repairs or tampering with the vehicle's odometer, OMVIC says.

"Curbsiding is something people are becoming more aware of, and certainly the courts are becoming more concerned with," O'Keefe said.

OMVIC says approximately 25 per cent of vehicles listed online as "for sale by owner" are placed by curbsiders. Curbsiders are also known to operate out of automotive-related businesses, such as repair shops, gas stations or car rental agencies.

Ontario residents who buy a vehicle from an unlicensed dealer are not protected by Ontario's consumer protection legislation or the Motor Vehicle Dealers Compensation Fund.

OMVIC says there are some important warning signs that might give a curbsider away. For instance, customers should always be wary of a seller who refuses an inspection, or who cannot provide the vehicle's accident report. Customers should also be suspicious if the vehicle is offered for sale below market value, and if it is not registered in the seller's name.

O'Keefe recommends asking to see any dealer's officially-licensed OMVIC sign before agreeing to a sale. The logo is a round orange circle surrounded by a blue ring, with the text: "OMVIC Registered Dealer."

Consumers can also check to see if a business is licensed by looking it up at OMVIC.ca.

"Ask to see their OMVIC licence, and if they don't have one, run and please report them to OMVIC," he said.

With files from CTV Ottawa