With an auto consignment agreement you may want to know what to look for before signing on the dotted line.
If you are considering selling your car through a dealer consignment program there is a lot to consider.
Let’s start by describing an auto consignment program and what it can do for you. There are some dealerships that will take your car and sell it on consignment. You will be charged a fee and the balance of the sales price will come to you.
Here Are Some Advantages To Selling Your Car On Consignment
The biggest positive factor is that they will do the work for you. You don’t have to worry about anything. They will do the advertising, do a safety inspection and detail your car.
The dealership will show and allow prospective buyers to test drive the vehicle. And, the auto consultant will file the proper paperwork to have the title changed.
Here are some things to look for on the auto consignment agreement.
This list will give you some ideas of the conversation you will want to have with the dealership before agreeing to consign your vehicle with them.
- Some dealerships charge a percentage and some will charge a flat fee to sell your vehicle. I have heard of those that have been charged a percentage and then found out a flat fee would have been cheaper with another dealer.
Also watch for the flat fee to be set without consideration of the sale price of the vehicle. For example, you may be charged a flat fee of $3,000 whether your car is worth $10,000 or $40,000. You may want to avoid this situation and save yourself some money.
Some have up-front fees for things such as the inspections, safety and engine. In addition these up-front fees may cover the detailing and advertising. On top of this, they may charge a commission when they sell the car.
- Ask about the time period of the consignment. These may be 30 day, 60 day or 90 day agreements. A few may offer, “Until Sold” although this can be costly to the dealership so these may be hard to find.
- Inquire as to where they advertise. You want to be sure that you are getting maximum advertising to get the most for your buck. Some resources they may have are Auto Trader, Craigslist, Cars and the local newspaper which may do a combo deal with both newspaper hard copy and internet.
- The best situation would be something called an offer and acceptance program. This is where the dealership will contact you with any reasonable offer. This way you have the choice to accept the price or counter-offer to get a little closer to your asking price. Most people want a little wiggle room for bargaining.
These are some points you will want to discuss with the dealer before signing an auto consignment agreement.
Consignment Car Sales | JFR & Associates, Inc.
8371 Southpark Lane
Littleton, CO 80120