Auto Consignment Agreement: Here’s What You Want To Look For…
What is an Auto Consignment Agreement?
This is an agreement where you, the owner of your vehicle, would agree upon letting someone else, like JFR & Associates (a consignment company), sell your car for you.
You typically pay them a nominal fee, and they handle all aspects of the sale for you.
Let’s start by discussing the auto consignment agreement and the benefits to you.
Most importantly…
Here’s What To Look For In The Auto Consignment Agreement
Check out these tips…
What Are The Fees?
Some dealerships charge a percentage anywhere from 5% to 15% of the value of the vehicle, and some will charge a flat fee to sell your vehicle. Other dealers will even charge you if the car doesn’t sell.
Besides that…
You also want to watch for the flat fee being set without consideration of the sale price of the vehicle. For example, you may get charged a flat fee of $4,500 whether your car is worth $10,000 or $40,000.
Some have up-front fees for inspections, safety, and engine. In addition, these up-front fees may cover the detailing and advertising. On top of this, they may charge a commission when they sell the car.
What Is The Term Of The Auto Consignment Agreement?
Ask about the term of the consignment. These may be 30-day, 60-day, or 90-day agreements. A few may offer “Until Sold,” although this can be costly to the dealership, so these may be hard to find.
How and Where Do They Advertise?
Inquire about where they advertise. You want to be sure that you are getting maximum advertising to get the most for your buck. Some resources they may have are Auto Trader, Craigslist, Cars, and their clients.
What Control Over The Sale Do You Have?
The best situation would be an offer and acceptance program (this is what we use here at JFR). This acceptance program is where the dealership will contact you with any reasonable offer. This way, you have the choice to accept the price, counter-offer, or reject it.
You are in total control of the sale of your vehicle.
Let’s take a look at the…
Benefits of Selling Your Car on Consignment
Simply stated…
First, we can’t stress enough how much of a hassle it is to sell your car. It’s time-consuming and expensive. You’ll have to spend money on repairs, detailing, and gas. And then you have to get the car ready for sale.
Here’s what you’ll gain…
- You can save money by using a consignment company and avoid the hassle of dealing with potential buyers and tire kickers at weird hours of the night and day.
- The dealer also will guarantee your funds when they sell your car.
- You usually get more money from a consignment sale than you would from selling or trading your vehicle with a dealer.
- Plus, you don’t need to do any work to get your car ready for sale. The dealer will handle everything for you.
- A car dealer has the ability to get multiple offers for your car, negotiate with the highest bidder, and then close the deal.
- This can be an excellent way to sell your car without all the hassle of doing it yourself.
- The car dealer can offer to finance the buyer of your vehicle, and they will also take trade-ins to make the sale of your car.
That’s why working with a company that knows how to market cars is essential.
At JFR & Associates, we offer a consignment program and handle the paperwork, advertising, and everything else for you. So you can relax and enjoy your favorite hobbies knowing that we are doing the heavy lifting for you.
Now You Can Have an Agreement That Is Win/Win…
You’ll want to make sure you understand what’s in the auto consignment agreement.
Our mission is to ensure you get the best price for your car with no stress or hassle.
Here’s the best part…
If you sell your vehicle on consignment, you won’t have to worry about anything. You can sit back and relax. You don’t need to worry or even think about the vehicle.
Our professional team will sell it in the most efficient way possible.
For our 5-Star service call 303-761-8045 or click the link below for more information. You have absolutely nothing to lose. Call us this week with your questions or to schedule an appointment for your free appraisal.
We look forward to hearing from you.
