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This guide provides essential information for dealers looking to offer car consignment services in West Virginia. Understanding these requirements helps ensure compliance with state regulations.
Car consignment in West Virginia is legal, but licensed dealers must follow state rules and best practices to protect both sellers and buyers. These West Virginia car consignment rules and dealer requirements (updated for 2025) cover written agreements, title & odometer handling, lien payoff, insurance, fee disclosure, and consignor payment timing.
Only licensed West Virginia motor vehicle dealers may legally consign and sell vehicles.
Private individuals cannot operate consignment services without a dealer license. In West Virginia, selling more than a few vehicles per year may trigger licensing requirements.
Dealers must maintain a $25,000 surety bond (required for most dealer types except repossession agents, manufacturers, or transporters).
Dealers must also carry liability insurance meeting the state’s minimum coverage levels — typically $20,000 / $40,000 / $10,000 (bodily injury / two persons / property).
The West Virginia Division of Motor Vehicles (DMV) oversees all dealer licensing, bond, and insurance compliance.
Source: WV DMV – Dealer Licensing
Source: WV Administrative Code Title 91, Series 6 (Cornell Law)
Source: West Virginia Independent Auto Dealers Association (WVIADA)
West Virginia does not have a consignment-specific statute, but a written consignment agreement is strongly recommended and should include:
Consignor’s full name, address, and signature.
Vehicle details (year, make, model, VIN, mileage, color, and plate number).
Ownership document information (title number, issuing state).
Names and addresses of any lienholders.
Date the vehicle was received by the dealer.
Dealer’s commission or fee structure.
Minimum acceptable selling price (if applicable).
Payment process and timing for seller funds once sold.
Insurance terms during consignment.
Cancellation terms.
Signatures of both parties, with a copy provided to the seller.
Best Practice: Use a bold “CONSIGNMENT” heading in the agreement and maintain copies for at least three years in compliance with standard dealer recordkeeping.
Vehicle titles remain in the seller’s name until the vehicle is sold.
West Virginia requires odometer disclosure at the time of transfer.
Odometer certification must be completed either directly on the title or using Form DMV-43 (Odometer Disclosure Statement – Dealers), as required by the West Virginia DMV.
Vehicles 10 years or older are exempt from federal odometer disclosure requirements.
Dealers should secure a limited Power of Attorney to handle title assignment, duplicate title applications, and lien releases on the seller’s behalf.
Source: WV DMV Form DMV-43 – Odometer Disclosure Statement (Dealers)
Best Practice: Store original titles (or lienholder copies if a loan exists) in a secure file until the vehicle is sold and paid in full.
West Virginia law does not specify a statutory payment deadline for consignors.
Payment timing should be clearly stated in the written agreement.
Best Practice: Pay consignors promptly after buyer funds clear — ideally within 24–48 business hours. Use a separate trust or escrow account when vehicles carry negative equity to ensure payoff protection.
Dealers must maintain garage liability insurance that covers all owned and consigned vehicles.
Dealers are responsible for test drive coverage and any damage occurring on dealer premises or during transport.
Sellers should confirm with their insurance provider whether residual coverage applies while the vehicle is consigned.
Best Practice: Require sellers to maintain comprehensive insurance during the consignment period. Obtain a copy of the seller’s insurance card for the file and have the seller initial the insurance section of the consignment agreement.
Vehicles with open loans may be consigned in West Virginia, but lienholders must be paid off at the time of sale.
Best Practice — Dealer Intake Checklist:
Lender’s contact information.
Current payoff statement.
Written authorization allowing dealer to process payoff.
If negative equity exists, collect the shortfall from the seller upfront and hold it in trust until the sale is complete.
Proper lien payoff handling ensures a smooth title transfer and protects both parties.
All fees and commissions must be disclosed in writing in the consignment agreement.
Disclose clearly:
Commission rate (flat or percentage).
Reconditioning or detailing costs.
Any storage, marketing, or administrative fees.
Sellers may terminate the consignment agreement unless otherwise stated in the contract.
Any cancellation terms — including notice period, retrieval fees, or reimbursement for dealer expenses — must be clearly defined in writing.
Can a private seller consign without going through a dealer?
No. Only licensed West Virginia dealers may legally offer consignment services.
How long does a West Virginia dealer have to pay the seller after sale?
There is no statutory deadline. Payment timing must be defined in the written agreement. Most reputable dealers remit funds within 24–48 business hours of cleared buyer payment.
Can a car with a loan still be consigned?
Yes, as long as the dealer processes lien payoff and ensures title transfer through the lienholder.
Last reviewed: October 2025
Once you understand the consignment requirements in West Virginia, the next step is putting them into practice.
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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.
This information is provided for general reference only. Laws and regulations change frequently. Always consult with legal counsel and verify current requirements with your state's DMV or regulatory authority before offering consignment services.
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