Consignment

What is Consignment?

Another method of selling your vehicle is consignment. Some smaller dealerships may be willing to sell your vehicle by consignment. This is a method where the dealer will take a percentage (i.e. 10%) of the vehicle's sale price. It may be in the dealers best interest to sell it for a high price as they will make more money (i.e. $10,000 selling price makes them $1,000, whereas, $9,000 selling price makes them $900). A disadvantage to this method is that the dealer may sell it at a lower price, resulting in less profit for them and you--your loss is always a greater dollar value than the dealerships. If they lose $50, you lose $500. They may sacrifice their profit because they need space on their lot or they may feel they are wasting too much of their time trying to sell the vehicle at a higher price. Time means money to them.