What are the laws regarding Auto Brokers/dealers?

Question

i posted an ad on Craigslist looking for a broker/dealer to find a specific car for me. the ad got flagged and taken down. the flagger emailed me and said i was "asking dealers to violate his relationship with Manheim" and that i had "possible curbstone sales activities as an unlicensed dealer". i don't even know what that means!!!!

here's the original ad:

"seeking an HONEST licensed auto broker or dealer that has access to all the major auto auctions (i.e., Manheim, etc) and wholesale lease return sales; would like for you to give me online descriptions or some access to self-shop through auction inventories.

i'm happy to pay a fee for this service, but it must be fair. ideally the cost of the car DMV/tax fees your fixed fee will be less than what i can get from a dealer after haggling with them."

what's wrong with this? someone please enlighten me.

Answer 1

What you are trying to get a dealer to do is illegal.  You are asking them to be your proxy and buy cars at auction on your behalf.  Then, you sell them.  That makes you a defacto dealer without a license - which circumvents DMV and state laws.  That is what is meant by 'curbing' or as they said 'curbstoning' a car.  Its also a way for a dealer to resell a car that is not technically fit for resale to the public.  If he sells to you, then you resell it - that becomes a private party transaction, and not subject to his bond or license.

Mannheim prohibits dealers doing this because, as I said, its illegal.

With all of that said, many wholesalers and small dealers do engage in this practice.  Its not uncommon.  However, its also not something they, or you, should be so brash as to ask or answer in an open forum.  You may as well post saying 'looking for a getaway driver for bank heist'

EDIT:  No, what you want is not wrong.  However, one can easily see how your ad might be interpreted the same way I did.