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Automotive Consignment: How It Works in Four Easy Steps

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Overview

Most people are familiar with the concept of using a local consignment shop to sell their used furniture, clothing, jewelry, art, etc. Take your items to the local shop and when they sell, you split the sale money with them. Automotive retail consignment is basically the same except you take your Auto, Motorcycle, or RV to an automotive "Consignment Pro." The term Consignment Pro is used here to mean a licensed, bonded, insured, state-approved independent motor vehicle retail dealer that offers consignment services to sell your Auto, Motorcycle or RV for a fee or commission or both. Another helpful way to think of automotive Consignment Pros is like the common practice of hiring a real estate agent (professional) to sell your house.

The Consignment Pro will typically handle all aspects of inspecting, appraising, preparing, advertising and selling your vehicle, which is a rather large list and undertaking. The retail consignment option will always yield you more money than a trade-in or instant cash wholesale offer. Generally, retail consignment will even get you more than selling it yourself, but without all the hassles and hazards commonly experienced with the private sale option.

Each Consignment Pro offers a slightly different approach to consignment, but generally their compensation consists of a fee(s) or commission or some combination of fees (upfront enrollment) and commission (when your vehicle sells).

Automotive retail consignment is a simple, proven, and valuable option.  Hand the keys to your Consignment Pro then sit back and collect your money when it sells. It all starts with finding a Consignment Pro near you that specializes in selling your type of vehicle.

Four Easy Steps

Step 1

Use Retail My Ride to locate an automotive Consignment Pro near you that specializes in selling your type of vehicle, then contact the Consignment Pro to discuss your vehicle and set up an appointment

Step 2

During your appointment, your Consignment Pro will complete:

  • Vehicle inspection
  • Appraisal and consultation on competitive market pricing
  • Discuss and recommend any pre-sale reconditioning to maximize the resale value
  • Sign a consignment agreement
Note: At this point your part is done (i.e, the sit back and relax part)

Step 3

Once your vehicle is enrolled in their program, your Consignment Pro will generally handle everything:

  • Prepare, Detail, and Recondition your vehicle
  • Photograph your vehicle
  • Advertise and list your vehicle on multiple websites for maximum exposure
  • Display and market your vehicle on their property
  • Supervise test drives
  • Handle all negotiations with prospective buyers
  • Accept buyer trade-in to faciliate sale of your vehicle
  • Offer financing options to buyer if needed
  • Offer warranty products to the buyer if requested
  • Certify and guarantee buyer funds

Step 4

After your vehicle is sold, your Consignment Pro will:

  • Pay off your outstanding loan and obtain title and lien release if applicable
  • Complete title transfer and registration process for you and the buyer
  • Pay you the proceeds of sale as agreed, generally within 24-48 hours of funding
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Retail My Ride is the best place to find an auto, motorcycle, or RV consignment professional

Retail My Ride is an all-in-one site to learn about using consignment professionals to sell your auto, motorcycle, or RV. Browse our collection of articles and common questions. Search for dealers near you that offer consignment services. Learn more about us.