The rising trend of curbsiders and chop shops

According to a recent report by Équité Association, nationally, over 57,000 vehicles were stolen in 2024. The national recovery rate for stolen vehicles is 59.3%, which means 40% of vehicles stolen are not recovered. Recovery rates are lowest in Ontario (50.8%) and Quebec (43.6%).  

Équité and the Ontario Motor Vehicle Industry Council (OMVIC), Ontario’s motor vehicle regulator, have collaborated on this article to look at who is stealing these vehicles, why they are being stolen, and where they are ending up. This awareness will help drivers and car buyers understand scams and how to avoid becoming a victim.  

Who is behind the auto theft crisis? 

Organized crime networks are looking at stolen vehicles in Canada as a low-risk/high-reward fraud opportunity. Organized crime networks are being funded through insurance crime and auto theft. These crimes hurt communities and put Canada in the spotlight internationally as a source country for illegal trade. The continued funding of organized crime networks, including drug trafficking, poses an ongoing safety threat to all Canadians.” 

Where are all stolen vehicles? 

According to Équité Association’s 2024 Auto Theft Trend Report, 40% of vehicles stolen are not recovered. Équité investigators, OMVIC and law enforcement note that these vehicles are likely being re-VINed then sold to the public, sold for parts at illegal chop shops or exported internationally. Stolen vehicles that remain within Canada can continue to victimize honest Canadians and put a strain on the insurance industry.  

Curbsiders 

Purchasing a vehicle can be a very confusing and overwhelming process and engaging with a private seller may seem to offer an easier buying experience.  Curbsiders are unlicensed and illegal dealers who often pose as private sellers (individuals selling a personal vehicle), and try to attract buyers by selling vehicles below market value. They will often hide important details about the vehicle such as accidents, mechanical issues, stolen parts, or salvage titles.   

Misrepresentations about a vehicle’s condition or history are not uncommon in private sales, leaving buyers exposed to potential disputes and financial losses. Because private sellers are not regulated, there is little to no support for the consumer should something go wrong with the purchase.   

“Équité investigators have seen instances where criminals will insure a re-VINed vehicle, and then falsely claim it as stolen against their insurance policy,” said Bryan Gast, VP Investigative Services at Équité Association. “The proceeds are then used to finance illegal activities, including drug trafficking, which poses an ongoing safety threat to all Canadians.” 

OMVIC offers resources and support to car buyers, both pre and post vehicle purchase from OMVIC-registered dealers. You may also have access to the Motor Vehicle Dealers Compensation Fund in certain circumstances but only when you buy from registered dealers. 

Chop Shops 

One of the most common practices employed by curbsiders is the use of chop shops. These illicit establishments specialize in dismantling stolen vehicles, stripping them down to their essential components, and selling off the parts for profit. Chop shops pose a significant threat to car buyers, as the vehicles they purchase from unregistered dealers could contain stolen parts, compromising their safety and legality. 

“With the threat of tariffs affecting the auto industry, coupled with the focus of preventing stolen vehicles from being exported through Canadian ports, criminals are shifting their focus to remarketing parts from stolen vehicles by chop shops,” said Sam Cosentino, director of enforcement at OMVIC. “The illegal operators will try to remove whatever identifying features are installed on the components, including anti-theft labels. They’ll then sell what they can to unscrupulous body shops such as fenders, doors, interiors, engines, transmissions and more.” 

Curbsiders frequently resort to illegitimate repair facilities to fix the wrecks they acquire. Rather than investing in genuine Original Equipment Manufacturer (OEM) parts, these unscrupulous operators opt for cost-effective alternatives, often sourced from illegal suppliers. Consequently, unsuspecting buyers may find themselves driving vehicles outfitted with stolen parts, oblivious to the potential dangers lurking beneath the surface. Additionally, vehicle owners could lose everything if a vehicle they bought from a curbsider is seized by police and found to include stolen parts. 

How to prevent your self from becoming a victim of auto theft or curbsiders 

Prevention is the best protection 

Criminals will look for vehicles which are easy to steal, including cars left running, unlocked or parked outdoors. When it comes to auto theft, the best offense is a good defense. Équité Association recommends using a layered approach, which consists of four categories: simple steps, anti-theft devices, vehicle immobilizers and tracking devices.  

On behalf of the insurance industry, Équité’s Investigative Services team works hand-in-hand with law enforcement and government agencies to identify and recover stolen vehicles and promote consumer protection.  

Tips when buying privately 

• Research and verify: Before purchasing a vehicle, research the make and model to identify any common issues. Verify the seller’s credentials by ensuring they are a registered dealer with OMVIC through its online dealer search. Avoid sellers who are unwilling to provide their dealer registration information or who only accept cash.  

• Request a vehicle history report: Always ask for a comprehensive vehicle history report, such as one from Carfax. This report will provide details about the vehicle’s past, including any accidents, previous ownership, and potential mileage discrepancies. It will also provide details regarding any open recalls.   

• Get a pre-purchase inspection: Have a trusted mechanic inspect the vehicle before finalizing the purchase. A mechanic can identify issues that may not be immediately obvious, helping you avoid costly repairs down the road.  

• Ensure all disclosures are in writing: Insist that all mandatory disclosures, including previous use, accident history, and odometer readings, are provided in writing. Verbal assurances are not legally binding and may not hold up if issues arise later.  

For peace of mind when buying a vehicle always choose an OMVIC-registered dealer. Dealers registered with OMVIC must follow strict rules and regulations, and if something goes wrong, your investment is safeguarded. Don’t take risks, buy with confidence from an OMVIC-registered dealer. 

If you suspect someone is illegally selling vehicles (a curbsider), report them to OMVIC at [email protected] or call1-888-NO-CURBS.