The Tennessee Department of Commerce & Insurance (“TDCI”), the Tennessee Motor Vehicle Commission, the Tennessee Attorney General’s Office, and the Tennessee Department of Revenue is alerting consumers to the recent increase in consumer complaints related to online purchases of vehicles in Tennessee.

Vehicle sales by unlicensed companies in Tennessee are prohibited. However, complaints show that Tennessee consumers are buying vehicles online from unlicensed individuals or unlicensed out-of-state companies. Consumers have filed complaints related to using online sites to purchase vehicles without first inspecting or driving the vehicles beforehand. Those vehicles arrived with damages not previously disclosed in the online advertisements. Additionally, some buyers experienced problems obtaining a clear title and registering the vehicles purchased online.

The licensing system administered by the Tennessee Motor Vehicle Commission is designed to promote responsible business practices and protect Tennessee consumers. Unfortunately, there are few remedies for frustrated consumers after purchasing a vehicle from an unlicensed seller who operates online and may not be located in Tennessee.

It seems some dealers, in a rush to make quick sales, are offering cars before they have even acquired the title to vehicles. This problematic practice is compounded by a prevalent tactic found both online and or in-person called “curb stoning,” when a seller or dealership pretends to be a private seller.

Curbstoning occurs when a person engages in the act of buying and selling used automobiles without a license, insurance, bond, sales tax number, Federal Tax ID, proper local permits, or legally established place of business. By curb stoning, a dealership attempts to avoid the regulations governing used car sales so that it can move inventory quickly.

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