Thinking about selling your car on a consignment- this article is worth a read

[GON]

Car owner placed his vehicle in a consignment dealership to market/ sell his vehicle. Vehicle was "stolen" via credit card fraud.

Contract with consignment dealership states Seller, not dealership is the liable party. Seller's auto insurance won't cover the theft, as his policy does not cover consignment sales.

My two cents- read every contract to be signed, and "x out" what doesn't make the contract a fair transaction.

https://www.the-sun.com/motors/11837711/dealership-theft-fraud-ford-mustang-sold/

 

[Astro14]

Wow! Good to know!

 

[atikovi]

The U.S. Sun? Isn't that some tabloid like the National Enquirer? Conveniently didn't bother to mention if that consignment dealer had fraud insurance?

 

[atikovi]

Are they even trying to get the car back? Unless it's chopped up for parts, wouldn't be hard to put a freeze on the title so at least the thief can't get it titled or whoever he sells it to can't.

 

[methusaleh]

Not sure about how thorough the paperwork for consignment sales is, but…

About 25 years ago (things may have changed) when I was a newly-minted investigator in a suburban police department, I received a surprising call one day and the scenario then turned out to be roughly an annual occurrence.

The calls all began pretty much the same, “I’m a town resident and I’m freaking out! I donated a car to a charity a couple years ago. It was nice that they gave me $500. I was just served with a summons to court. I called and the district attorney’s office told me the car was used in a crime and my name is the last owner connected to the VIN! The charity and subsequent owners never did the correct paperwork! Help!!”

 

[atikovi]

I donated a car to a charity a couple years ago. It was nice that they gave me $500.

Umm.....If you donate a car, they don't give you ANY money for it.

 

[Dave Hess]

Only a fool would try and sell their car by consignment.

Here in Florida some idiots lost their exotic cars to this scam and no car, no money and they had to hire a lawyer.

 

[eljefino]

^ Agreed. Why can't a dealer give you cash then deal with selling the car? Your car isn't "so special" they can't figure out what price it's going to sell for, and therefore do a percentage deal. A dealer that wants to do consignment is under-capitalized and can't/ won't front the money for your creampuff, and that's because... they suck.

If you hate "tire kickers" and are trying to sell it yourself, you're asking too much. If your price is correct someone serious will show up. There are better cars than yours in better condition selling for more, and yours ain't it, so don't watch the Manheim auction on Speed Channel and assume you're next. Come to terms with that and you'll get what the consignment dealer was going to give you anyway, on your best day.

 

[fdcg27]

There are also established resellers who will buy the car from an owner outright for a reasonable dollar, especially something as common as this Mustang. Only 400 in this color, like that's somehow a small number.
A little time spent online will get any seller firm buying prices with no headaches or aggravation.
eljef is correct in that running a consignment shop is no more nor less than operating a dealership with the consigning sellers financing your inventory for you. Nice work if you can get it.

 

[Jdeere562]

I will ONLY sign my title over at the courthouse when the title is transferred to their name.
Sure can save hassles.

 

[MRC01]

Only a fool would try and sell their car by consignment. ...

This is overstated. I had a rare car that I sold through consignment. The shop earned their commission, getting me a good price for my car. It was a smooth and easy transaction.

Selling by consignment is like entering a business partnership. You have to do your homework, carefully select the company, read the contract and make sure you are protected.

 

[wings&wheels]

Only a fool would try and sell their car by consignment.

Here in Florida some idiots lost their exotic cars to this scam and no car, no money and they had to hire a lawyer.

How about only a fool would sell they car by consignment without doing adequate due diligence? There are plenty of legit dealers who consign, at least in the special interest car world. I've sold and bought several vehicles and an airplane that way. That being said, I read and understand the 'fine print'. In fact the last consignment sale I did, my Lotus via Motor Classics in NY, was one of the easiest and pleasant sell experiences I had. I'll gladly pay a fair commission for the pricing expertise, logistics and not having to deal with some buyers....

Oh, and this is the Sun, and I'd expect that there is more to the story.

 

[AZjeff]

Only a fool would try and sell their car by consignment.

Usually the percentage to the dealer is less on a consignment than outright selling to the dealer. Car owner didn't read the contract or check with his insurance. Sorry.

 

[methusaleh]

Umm.....If you donate a car, they don't give you ANY money for it.

I believe they were getting 501c3 letters for tax purposes. It’s been a looooong time since I dealt with such a call.

 

[Dave Hess]

Usually the percentage to the dealer is less on a consignment than outright selling to the dealer. Car owner didn't read the contract or check with his insurance. Sorry.

Zero possibility I would give my car to a stranger with their promise of selling it.

Heck, I don’t like being at Tire Kingdom and someone touching my car to replace tires….

Any problems with consignment the cops will say to contact a lawyer.

 

[DriveHard]

Sold LOTS of cars...CASH only