Oregon Car Consignment Rules & Dealer Requirements | 2026 Guide

Car consignment in Oregon is legal, but dealers must follow specific state rules designed to protect sellers and buyers. These Oregon car consignment rules, dealer requirements, and best practices (updated for 2026) cover written agreements, title handling, lien payoff, payment timing, and dealer compliance obligations.

Dealer License Requirements

• Only a certified Oregon vehicle dealer (holding a vehicle dealer certificate) may engage in dealer activities, including taking vehicles on consignment.

• Oregon dealer certification is handled through Oregon DMV Business Regulation / Dealer Services (ODOT DMV).

Source: Oregon DMV - Instructions for Becoming a Dealer

Source: Consignent Practices and Title Requirements

Written Agreements

• Oregon law requires a dealer to have the terms of the consignment agreement in writing and provide a copy to the consignor.

• The agreement must include a provision stating that if the terms are not met, the consignor may file a complaint in writing with the Oregon Department of Transportation, Salem, Oregon.

• The consignment agreement should clearly state the vehicle (including VIN), the terms of sale, and the disposition of proceeds (including payoff to any security interest holder).

Best Practice: Give the consignor a signed copy and retain the original in the dealership file.

Oregon Car Consignment Agreement Provided For Sale by OIADA

Title, Odometer & Ownership Document Handling

• When taking a vehicle on consignment, Oregon DMV expects the dealer to have proof the consignor is the legal registered owner (or otherwise legally entitled), typically via the title, registration card, or DMV printout showing owner information.

• For consigned vehicles, Oregon’s dealer guidance emphasizes meeting title delivery / title submission timelines after the sale.

• Odometer disclosure rules still apply where required; Oregon’s dealer guidance notes consigned transactions have specific handling expectations (including that required odometer disclosures come from the consignor).

Best Practice:  Secure and store the appropriate ownership documents at intake (title when available) and verify lien status before marketing the vehicle for sale.

Escrow / Seller Funding Timeline Rules

• Oregon law requires the dealer to pay the consignor within 10 days of the sale of a consigned vehicle.

• Oregon DMV also summarizes this rule plainly for consumers: when a dealer sells your consigned vehicle, they have 10 days to pay you.

Best Practice:  Define “date of sale” and payment method in the agreement, and document all deductions (commission, fees, reconditioning authorization) clearly so the net proceeds calculation is undisputed.

Insurance & Test Drives

• Dealers should maintain garage liability and inventory insurance covering all vehicles on their lot or during dealer-authorized test drives, including owned and consigned vehicles.
• Confirm with your insurance provider that consigned vehicles are covered under your policy for both liability and physical damage exposures.

Best Practice: Require sellers to maintain their own comprehensive coverage while the vehicle is on consignment and document this requirement in the consignment agreement. Generally, the seller's insurance covers damage and liability for "forced majeure" (Acts of God).

Lien Payoff Process

Oregon’s consignment guidance expects the agreement to address the disposition of proceeds, including payoff to a security interest holder when applicable.

Best Practice: At intake, collect lender contact information and a current payoff statement, and include written authorization in the agreement for the dealer to process payoff at sale. If payoff is higher than expected net proceeds, collect the shortfall (negative equity) upfront so the lien can be satisfied and title released without delays.

Fee Disclosure Rules

All commissions, fees, and authorized deductions should be clearly disclosed in the written consignment agreement (commission/flat fee, recon/repairs, storage/marketing, and any admin/doc fees).

Best Practice: Include a simple “seller net sheet” calculation: expected sale price minus fees/authorized deductions = estimated net proceeds.

Cancellation & Contract Terms

Include clear cancellation terms in the consignment agreement (notice requirements, vehicle retrieval process, and any authorized costs due on termination).

Best Practice: Document what happens if a buyer rescinds or the deal unwinds (return of vehicle, return of funds, and any authorized deductions).

Oregon Car Consignment FAQs

Can a private seller consign a car through a dealer in Oregon?
Yes. A certified Oregon vehicle dealer can take a vehicle on consignment, but the dealer must use a written consignment agreement and follow Oregon’s payout and title-handling rules.

What are a dealer’s payment obligations when selling a consigned vehicle in Oregon?
Oregon requires the dealer to pay the consignor within 10 days of the sale.

How quickly must the dealer handle title delivery or submission after selling a consigned vehicle?
Oregon dealer guidance states the dealer must either provide the purchaser the title/primary ownership document within 25 calendar days, or submit the title application to DMV in the purchaser’s name within 30 calendar days of the sale.

Want more general answers about selling or consigning a car?
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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.