Tennessee Motor Vehicle Commission reminds consumers to be vigilant, conduct research before shopping for a vehicle

Nashville – As tax refunds begin hitting Tennesseans’ bank accounts, many consumers will be using their refund money to buy a new or preowned vehicle. Unfortunately, the excitement of buying a vehicle can quickly turn to disappointment if you’re the victim of an unscrupulous auto scammer.

The Tennessee Motor Vehicle Commission, which is under the Tennessee Department of Commerce & Insurance’s Division of Regulatory Boards, reminds consumers to be vigilant, conduct research before shopping for a vehicle, and always use licensed sales professionals when purchasing a vehicle.

“Tennessee’s Motor Vehicle Commission reminds Tennesseans to learn the red flags of auto scams and spot a “can’t-miss-deal” that could be a scam before signing any paperwork or buy a car,” said Motor Vehicle Commission Executive Director Denise Lawrence. “When buying a car, always research your options carefully to ensure you are making the most of your money and to prevent being scammed by a bad actor. Slow down, ask questions, and always use a licensed motor vehicle seller when purchasing a vehicle.”

A prevalent scam tactic is curbstoning. Curbstoning is the illegal sale of used vehicles under the false pretense of being the car’s owner in order to evade city or state regulations. Curbstoning occurs when a person engages in the act of buying and selling used automobiles for profit but without a license, insurance, bond, sales tax number, federal tax ID, proper local permits, or legally established place of business.

How do you prevent being the victim of a curbstoner? Always buy from a licensed seller. Tennesseans can check the status of the license of an auto dealer or an auto salesperson by visiting verify.tn.gov. Remember, licensed dealers are required to disclose that they are a dealer in all forms of advertising, including social media such as Craigslist, by including either their business name or license number.

Before Shopping:

  • Decide what you can afford. Don’t forget to factor in insurance, parking, gas and maintenance costs.
  • Research the car’s value. Check free online car evaluation websites to find out the average price of the car you plan to buy and trade in.
  • Investigate financing before you choose a car. Ask about the financing terms (the number of months, down payment, interest rates and finance charges) if you plan to buy. If you plan to trade your existing car, make sure to also research its fair trade-in value.
  • All Tennessee auto dealers must be licensed by the Motor Vehicle Commission. Check a car dealer’s license status by visiting tn.gov.
  • At the Sale Site:
  • Examine the car carefully. Check the condition of the engine, tire wear, and any sign of an accident. Take the car for a test drive.
  • Get a vehicle history report at the National Motor Vehicle Title Information System.
  • If purchasing a used car, have an independent mechanic check the car before purchasing.
  • Do not buy a car if the dealer will not let you have it inspected. Many safety defects will not be identified during a standard inspection so you should also check for recalls.
  • Review the contract carefully. Make sure all agreed upon repairs, fees, taxes, and warranties are written on the purchase contract before you sign. Never sign a blank, incomplete, or unclear contract or buyers guide.
  • Get the mileage in writing and ensure it matches the vehicle’s odometer.
  • Get copies of all paperwork. Don’t leave without copies of everything that you signed.
  • If the dealer is to complete the title work for you, be aware that you may be asked to sign a Limited Power of Attorney authorizing the dealership representative to sign your name to the title and registration documents. Read this form closely and get a copy before leaving.

If you feel that you have been treated unfairly, and you have not been able to reach a satisfactory resolution with your car dealer, you may file a complaint with the Tennessee Motor Vehicle Commission is here to help.

Visit us online or by calling 615-741-2711 and requesting the Motor Vehicle Commission staff.

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