Georgia Car Consignment Rules & Dealer Requirements | 2025 Guide

Car consignment in Georgia is legal, but licensed dealers must follow state rules and best practices to protect both sellers and buyers. These Georgia car consignment rules and dealer requirements (updated for 2025) cover written agreements, title & odometer handling, lien payoff, insurance, fee disclosure, and consignor payment timing.

Dealer License Requirements

• Only licensed Georgia motor vehicle dealers may legally consign and sell vehicles.

• Private individuals cannot operate consignment services without a dealer license.

• Dealers must maintain a $35,000 surety bond as part of licensing requirements.

• Dealers must must complete registrations and plate renewal applications online using DRIVES e-Services.

• The Georgia Department of Revenue (DOR) regulates dealer licensing and compliance.

Source: Georgia DOR – Dealer Registration

Source: Rules & Regulations for the State of Georgia

Source: Georgia Motor Vehicle Dealer Bond Info

Source:  Georgia Independent Dealers Association (GIADA) - Legal & Compliance

Written Agreement Requirements

Georgia law requires a written consignment agreement for every vehicle consigned. The agreement should include:

• Consignor’s full name, address, and signature.

• Vehicle details (year, make, model, VIN, mileage, and plate number).

• Ownership document details (title number, issuing state).

• Names/addresses of any lienholders.

• Date the vehicle was delivered to the dealer.

• Minimum acceptable selling price (if applicable).

• Dealer’s commission or fee structure.

• Process and timing for paying the seller once the vehicle is sold.

• Terms of insurance coverage during consignment.

• Cancellation terms.

• Signatures of both parties, with a copy provided to the seller.

Best Practice: Use a clear “CONSIGNMENT” heading in the agreement and keep copies for at least 3 years.

Title, Odometer & Power of Attorney Handling

• Vehicle titles remain in the seller’s name until the vehicle is sold.

• Georgia requires odometer disclosure at sale. Federal law applies: vehicles require disclosure until 20 years old; vehicles older than 20 years are exempt.

• Dealers typically use Form T-8 Limited Power of Attorney to process title work on the seller’s behalf.

• Form T-107 Odometer Affidavit may be required for transactions involving odometer discrepancies.

Best Practice: Dealers should retain the seller’s title (or lienholder copy if a loan exists) in secure storage until the sale is completed.

Source: Georgia DOR – Motor Vehicle Forms

Escrow / Consignor Payment Timing Rules

• Georgia law does not set a statutory deadline for paying consignors after a sale.

• Payment timing to the seller is controlled by the written consignment agreement.

Best Practice: Pay sellers promptly once buyer funds clear — many Georgia dealers remit net proceeds to seller within 24–48 business hours after receiving buyer or lender funds.

Insurance & Test Drives

• Dealers must maintain garage liability insurance covering all owned and consigned vehicles.

• Dealers are responsible for test drive coverage under their policy.

• Sellers should check with their insurance provider to confirm coverage while their vehicle is consigned.

Best Practice:

• Require sellers to maintain comprehensive coverage.

• Obtain a copy of the seller’s insurance card for the file, and have sellers initial the insurance section of the agreement to confirm understanding.

Lien Payoff Process

• Vehicles with open loans can be consigned in Georgia.

• The lienholder must be paid off directly by the dealer at the time of sale.

Best Practice: At time of consignmenty, obtain:

• Lender’s contact information.

• A current payoff statement.

• Written authorization for the dealer to process the payoff.

If negative equity exists (payoff exceeds expected net proceeds), the dealer should collect the shortfall from the seller upfront and hold it in trust until the vehicle is sold.

Fee Disclosure Rules

All dealer fees and commissions must be disclosed in writing in the consignment agreement.

Disclose clearly:

• Commission percentage or flat fee.

• Reconditioning or detail costs.

• Any storage, marketing, or administrative fees.

Cancellation & Cooling-Off Notes

• Sellers may terminate the consignment agreement unless otherwise stated in the contract.

• Any cancellation terms (notice period, retrieval fees, reimbursement for dealer expenses) must be clearly spelled out in writing.

FAQs

Can a private seller consign without going through a dealer?
No. Only licensed Georgia dealers may legally consign vehicles.

How long does a Georgia dealer have to pay the seller after sale?
There is no statutory deadline. Payment terms are governed by the consignment agreement. Many dealers pay within 24–48 business hours after funds clear.

Can a car with a loan still be consigned?
Yes. The dealer must process the lien payoff and ensure title release through the lienholder.

Last reviewed: September 2025

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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.