Understanding a Vehicle Consignment Sale

When you decide to sell your vehicle, there are a few options available. You could either sell the vehicle privately at a much higher price or sell it to a Car Dealer for the trade value — the second option ensures a quicker sale. Selling your vehicle on Consignment is somewhere in between these options. It is an option for owners who would like to sell their vehicle privately, but without the hassle and risk of conducting the sale themselves.
- What is a Vehicle Consignment sale?
A Consignment sale is a process that removes the risk involved when selling your vehicle privately and pass the entire sale process over to a Car Dealer. The Car Dealer will market and sell the vehicle on your behalf, if the Car Dealer manage to sell your vehicles they will take their agreed-upon commission from the total sale price. The goal of a Consignment Sale is for the seller to get a higher price than trade value for the vehicle. - Benefits of a Consignment sale?
Selling your vehicle on Consignment can benefit you in many ways.
Listed below are the most common benefits:
- It’s much safer to have a Car Dealer manage the sale process than trying to do it yourself
- You don’t have to advertise the vehicle as “for sale” on websites or newspapers
- The Car Dealer will do all the marketing on your behalf. The vehicle will also be available for viewing at the Car Dealers showroom/premises
- You don’t have to deal with strangers wanting to view or test drive your vehicle
- You don’t have to answer any after hours calls about the vehicle or negotiate about the price
- You don’t have to make arrangements to receive payment of the vehicle from the buyer or help with vehicle finance arrangements
3. Cons of a Consignment sale?
Although there are many benefits to selling your vehicle on Consignment, there are also a few cons that you need to be aware of.
We’ve listed them below:
- You will not have access to your vehicle as it will be standing at the Car Dealers showroom/premises
- Your vehicle might get damaged while in the Car Dealers possession
- Your vehicle mileage will increase while being taken on test drives by potential buyers
- Your vehicle retail value will decrease if standing at the Car Dealers showroom/premises for a long period of time
In South Africa a vehicle can almost be classified as a daily commodity, therefor the option to sell a vehicle on Consignment wont appeal to most people. A Consignment sale is a good option to explore if you don’t require access to your vehicle while it’s for sale.
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