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This guide provides essential information for dealers looking to offer car consignment services in Ohio. Understanding these requirements helps ensure compliance with state regulations.
Ohio is widely viewed as a restrictive state for true retail “consignment” (where the dealer sells a vehicle while the title remains in the owner’s name). In practice, Ohio’s title rules are structured around the dealer possessing a bill of sale and/or POA authority to obtain title in the dealer’s name when displaying/offering/selling a used vehicle.
Because of that, many Ohio dealers handle “consignment-like” situations as a dealer purchase / trade / assignment structure (or another compliant ownership-transfer method), rather than a traditional consignment where the seller keeps title until sale. Always confirm your exact structure with Ohio BMV Dealer Licensing and counsel before offering “consignment” services.
Only licensed Ohio motor vehicle dealers may sell vehicles at retail as a dealer business.
Ohio licensing and dealer resources are administered through Ohio Dealer Licensing.
Used dealer applicants must complete required training (per Ohio administrative rules).
Source: Ohio Dealer Licensing – Used Dealer License
Because Ohio is commonly treated as restrictive on “true consignment,” dealers should avoid informal “we’ll sell it for you” arrangements.
If you operate any consignment-like structure, best practice is to use written documents that match the compliant structure you are actually using (example: dealer purchase agreement, trade documentation, POA documents, payoff authorization, and a clearly written payout/settlement agreement if you’re remitting proceeds back to the prior owner).
For dealer retail sales documentation, Ohio requires detailed written contract disclosures to the buyer (sale price, trade allowance, itemized charges, etc.).
Ohio’s title rules strongly emphasize the dealer’s authority and documentation when displaying/offering/selling vehicles:
Ohio allows a dealer to display, offer for sale, or sell a used vehicle without first having the title issued in the dealer’s name only if the dealer possesses (and retains copies of) a bill of sale or a properly executed power of attorney / related documents giving the dealer authority to have a title issued in the dealer’s name.
If the dealer sells without having title already in the retail buyer’s name, the buyer can have an unconditional rescission right if the dealer fails to obtain title for the buyer by the 40th day after the sale (and other listed conditions).
Dealers must maintain a mileage (odometer) disclosure statement from the prior owner for each vehicle the dealer sells/purchases/receives as trade.
Ohio provides an official Odometer Disclosure Statement (BMV form).
Why this matters for “consignment”: These requirements are one reason Ohio is often treated as not a traditional consignment state—dealers generally need a structure where they can lawfully control title/ownership transfer and comply with the documentation trail.
Ohio’s statutes and dealer-facing rules focus heavily on title/odometer compliance and consumer protections, not on a standard “consignment payout timeline.”
If you are doing any consignment-like remittance to a prior owner, best practice is to put the payout timing in writing and tie it to clear triggers (buyer funding received, title deliverability, lien payoff confirmation, chargebacks/contract rescission windows).
Best Practice (recommended):
State the payment trigger clearly (example: “after buyer funds clear AND title/transfer requirements are satisfied”).
State a firm timeline (example: “within X business days after trigger”).
Disclose permitted deductions (commission/fees, recon, payoff, etc.).
Include a process for rescinded deals / unwind events (return of funds, vehicle return, etc.).
Dealers should carry garage liability insurance appropriate for dealership operations and test drives.
If using any consignment-like structure, confirm with your agent that your policy covers non-owned vehicles on lot (if applicable), dealer plates, and test drives.
Ohio does not have a statewide safety inspection program like some states, but Ohio does require E-Check emissions testing in specific counties (program rules and counties are published by Ohio EPA).
If a vehicle has an open loan:
Collect lender contact info and a current payoff statement at intake.
Use written authorization allowing the dealer to communicate with the lender and process payoff.
Confirm whether the transaction structure requires payoff before title can be properly transferred.
Ohio requires clear disclosure of transaction charges to consumers in the written sale documents.
Ohio dealers commonly reference a statutory maximum documentary service charge (“doc fee”) cap (industry guidance notes a maximum of $250).
If you are using any consignment-like structure, include cancellation terms (notice, retrieval, storage, recon reimbursement, and unwind rules if a deal is rescinded).
If the vehicle is structured as a dealer purchase instead of consignment, cancellation rights may be governed by that purchase agreement (not a consignment agreement).
Is car consignment legal in Ohio?
Ohio is commonly treated as restrictive for true consignment (dealer sells while title remains with owner). Ohio’s title rules are designed around the dealer having bill of sale / POA authority to obtain title in the dealer’s name and strict title-delivery requirements to the buyer. Many dealers use a compliant purchase/assignment structure instead of traditional consignment. Always confirm with Ohio Dealer Licensing and counsel.
Can a private seller “consign” a car through a dealer in Ohio?
If a dealer offers a service marketed as “consignment,” ensure the underlying structure is compliant with Ohio title/POA documentation and dealer rules. A safer approach is often a compliant dealer acquisition / resale structure rather than owner-retained-title consignment.
What happens if the dealer sells a vehicle but can’t deliver title?
Ohio provides buyers an unconditional right to demand rescission if title isn’t obtained for the buyer by the 40th day after sale (and other listed conditions).
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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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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