Nevada Car Consignment Rules & Dealer Requirements | 2026 Guide

Car consignment in Nevada is legal, but dealers must follow specific state rules around consignment contracts, dealer licensing, trust/escrow handling, title transfers, and vehicle sale disclosures. These Nevada car consignment rules, dealer requirements, and best practices (updated for 2026) cover dealer licensing, written agreements, title/ownership handling, lien payoff, escrow and trust account considerations, insurance, and payout terms that help both sellers and dealers stay compliant when consigning vehicles in Nevada.

Dealer License Requirements

• Only licensed motor vehicle dealers may sell vehicles to the public in Nevada, including vehicles offered on consignment.

• Dealers are licensed and regulated through the Nevada Department of Motor Vehicles — Occupational & Business Licensing Division.

• Dealer applicants must meet location, signage, insurance, bond, and application requirements as part of the licensing process.

Source:  NVDMV Vehicle Industry Licensing

Source: Motor Vehicle Industry Portal

Written Agreements

Nevada law defines a consignment contract as a written agreement between a registered owner (or lienholder) and a consignee (dealer) authorizing the dealer to act as agent for sale of the vehicle. A consignment contract must include:

• Names of consignor and consignee

• Contract date

• Vehicle description (year, make, model, VIN)

• Term of the contract

• Name of any lienholder

• Minimum sales price

• Disposition of sale proceeds

• Signatures of both parties

Best Practice:  Provide the consignor with a signed copy and keep the original agreement in the dealership’s compliance file.

Title, Odometer & Ownership Document Handling

• Dealers must comply with Nevada’s title transfer requirements after sale.

• Nevada law obligates dealers to prepare and transmit title paperwork so that a new certificate of title can be issued to the buyer, generally within 30 days of sale.

• Federal odometer disclosure rules apply when required.

Best Practice:  Collect the seller’s original title (when available), proof of ownership, and lien-release documentation needed to complete the retail sale.

Escrow / Seller Funding Timeline Rules

• Nevada statutes governing broker transactions require that certain buyer funds be deposited into a separate trust account and not commingled.

• While these provisions apply most directly to brokers, consignment sale proceeds should be handled with similar fiduciary care.

• Nevada does not publish a universal statutory deadline for paying consignors in every scenario, so payout timing should be clearly defined in the consignment agreement.

Best Practice:  Keep sale proceeds segregated until liens are satisfied and the seller is paid, generally within 24-48 business hours after dealer receives buyer funding. Clearly document timing triggers and deductions in writing.

Insurance & Test Drives

• Dealers must maintain garage liability and inventory insurance covering vehicles on the lot, specfically owned and consigned vehicles.

• Confirm with your insurer that consigned vehicles are covered for liability and physical damage during transport and test drives.

Best Practice:  Require the consignor to maintain comprehensive coverage while the vehicle is on consignment and document this requirement in the agreement. Seller insurance policy generally covers "forced majeure" (Acts of God).

Disclosures & Buyer-Facing Rules

• Nevada does not publish a unique consignment disclosure form, but all dealer retail sales must comply with standard disclosure requirements.

• Used vehicles in Nevada are generally sold “as-is” unless a written warranty is provided.

Best Practice:  Ensure retail contracts and buyer disclosures are complete when a consigned vehicle is sold.

Lien Payoff Process

If a consigned vehicle has an open loan, obtain lender contact information and a current payoff statement at consignment intake.

Best Practice:  Include lien-payoff authorization in the agreement and collect any shortfall (estimated negative equity) from the consignor if the payoff exceeds expected net proceeds.

Fee Disclosure Rules

Disclose all fees and commissions in the written consignment agreement, including:

• Dealer commission or flat fee

• Reconditioning or repair authorizations

• Storage or marketing charges

• Administrative or document fees

Cancellation & Contract Terms

State cancellation and termination terms in the consignment agreement, including notice requirements, vehicle retrieval procedures, and any authorized costs due on termination.

Best Practice:  Document a clear process for voluntary cancellations and buyer rescissions.

Nevada Car Consignment FAQs

Can a private seller consign a car through a dealer in Nevada?
Yes. A licensed Nevada dealer may accept a vehicle on consignment under a written agreement that complies with Nevada’s consignment-contract and dealer-licensing requirements.

What are a dealer’s payment obligations when selling a consigned vehicle in Nevada?
Nevada law does not publish a universal payout deadline, so dealers should define payment timing in the consignment agreement and ensure funds are handled in a fiduciary manner pending lien payoff and title transfer.

Do consignment funds have to be segregated?
Nevada’s trust-account rules apply most directly to brokers receiving deposits, but dealers should keep consignment proceeds segregated until liens are satisfied and the seller is paid to avoid commingling.

Want more general answers about selling or consigning a car?
Visit Retail My Ride’s full FAQ center

Last reviewed: January 2026

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⚠️ Important Notice

This page is provided by Retail My Ride for general informational purposes only. It is not legal advice. Car consignment laws and dealer requirements may change at any time. Always confirm the latest rules with your state DMV, licensing authority, or qualified legal counsel before making decisions.