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Old 10-24-2007, 08:06 PM
 
Location: in drifts of snow wherever you go
2,522 posts, read 212,332 times
Reputation: 692
Default Selling a car through dealer consignment

Has anyone sold a car through a dealer consignment? Just wondering how it works. Does the dealer inspect and detail the car? Do they sell it as is or with a warranty? Is it worth it to sell through a dealer or should I just sell it on my own? Will the dealer get a better price on the car? What if I find someone who wants to buy the car before the dealer can sell it? Does the dealer make me pay for the work they put into prepping the car?

Curious how this works.

Thanks,

Greenie
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Old 10-24-2007, 08:20 PM
 
120 posts, read 13,262 times
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Default This is very risky for any respectable dealership.

I wouldn't foresee any large dealer getting involved with consignments. Why take the risk? Helping someone else sell their vehicle isn't part of the profit.

A very small dealer could easily assist a car owner. However, parking your vehicle in a high traffic area, detailed, price marked, and contact information provided is more helpful.

If your going to persue a consignment with a dealer. Your going to have to trust to leave your vehicle there for viewing.

I personally purchased a motorcycle years ago from a local Yamaha dealership that sold new bikes and a few consignments. I was able to test drive the bike, purchase it pretty easily, and negotiate the price. I made an offer a little less than they advertised. They had to call me the next day to inform me on the owner's take on my offer. In the end, I had a very nice bike for an affordable price.
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Old 10-24-2007, 08:35 PM
 
Location: in drifts of snow wherever you go
2,522 posts, read 212,332 times
Reputation: 692
Quote:
Originally Posted by Tryingtofigureitout View Post
I wouldn't foresee any large dealer getting involved with consignments. Why take the risk? Helping someone else sell their vehicle isn't part of the profit.

A very small dealer could easily assist a car owner. However, parking your vehicle in a high traffic area, detailed, price marked, and contact information provided is more helpful.

If your going to persue a consignment with a dealer. Your going to have to trust to leave your vehicle there for viewing.

I personally purchased a motorcycle years ago from a local Yamaha dealership that sold new bikes and a few consignments. I was able to test drive the bike, purchase it pretty easily, and negotiate the price. I made an offer a little less than they advertised. They had to call me the next day to inform me on the owner's take on my offer. In the end, I had a very nice bike for an affordable price.
Let me be clear: I am not selling a car on consignment. I am just curious on how it works and if there are any scams involved.

Greenie
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Old 10-24-2007, 10:05 PM
 
Location: Chicago
35,926 posts, read 55,158,806 times
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I once sold a vehicle on consignment, an arrangement made possible by the fact that my brother manages a dealership. My own brother took 25% because that's how much he needed just to make it worth his while. I wouldn't have done it that way had I need needed the cash in a hurry.
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Old 10-24-2007, 10:31 PM
 
Location: in drifts of snow wherever you go
2,522 posts, read 212,332 times
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Quote:
Originally Posted by Drover View Post
I once sold a vehicle on consignment, an arrangement made possible by the fact that my brother manages a dealership. My own brother took 25% because that's how much he needed just to make it worth his while. I wouldn't have done it that way had I need needed the cash in a hurry.
Wow. that's a lot!

So, if a car sells for $22,000, the dealer might take $5,500??

Does the dealer have to inspect the car and fix anything that is wrong first?
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Old 10-24-2007, 10:52 PM
 
Location: Chicago
35,926 posts, read 55,158,806 times
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They would have to perform whatever inspection is required by law as if were like any other used car on its lot.

The upside is that the car may sell quicker because the dealer is, in essence, doing the marketing and generating the traffic for you. The downside is that, yes, they'll take a substantial chunk (though not necessarily 25%) and you'll probably get less than if you had conducted a private-party sale. That's the tradeoff. Have you considered taking your car to Carmax and seeing if they'll provide an offer?
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Old 10-25-2007, 08:19 AM
 
Location: in drifts of snow wherever you go
2,522 posts, read 212,332 times
Reputation: 692
Quote:
Originally Posted by Drover View Post
They would have to perform whatever inspection is required by law as if were like any other used car on its lot.

The upside is that the car may sell quicker because the dealer is, in essence, doing the marketing and generating the traffic for you. The downside is that, yes, they'll take a substantial chunk (though not necessarily 25%) and you'll probably get less than if you had conducted a private-party sale. That's the tradeoff. Have you considered taking your car to Carmax and seeing if they'll provide an offer?
Drover,

I am not selling a car. I was buying a car from a private party. When I inspected the car professionally, I found out it had some problems and lowered my offer. He was insulted and chose to sell it through dealer consignment as opposed to working with me on the deal. I'm wondering if he really things he'll get a better offer at the dealer. He still needs to fix the leak in the transmission, replace the rear brakes and pads, and fix the bumper and missing mudguards. Plus the car needs a good wax and detail. He is just busy and can't be bothered. But a dealer is not going to sell a car with these problems, are they? (It was a BMW and you have to take care of these cars.)
Greenie
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Old 10-25-2007, 11:33 AM
 
Location: Chicago
35,926 posts, read 55,158,806 times
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They may or may not sell it with those problems. Laws vary from place to place, and depending on what your local laws are, the dealership be required to at least disclose some of these problems, but not necessarily all of them. For instance, I doubt any state would require the dealer to disclose "missing mudguards."
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Old 10-25-2007, 02:20 PM
 
Location: in drifts of snow wherever you go
2,522 posts, read 212,332 times
Reputation: 692
Quote:
Originally Posted by Drover View Post
They may or may not sell it with those problems. Laws vary from place to place, and depending on what your local laws are, the dealership be required to at least disclose some of these problems, but not necessarily all of them. For instance, I doubt any state would require the dealer to disclose "missing mudguards."
Missing mudguards are not an issue, but the transmission leak is a problem and so is replacing the rear brakes on a car with only 20K miles. It means the car was driven very hard.
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Old 10-26-2007, 12:07 AM
 
Location: Chicago
35,926 posts, read 55,158,806 times
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Quote:
Originally Posted by GreenMachine View Post
Missing mudguards are not an issue, but the transmission leak is a problem and so is replacing the rear brakes on a car with only 20K miles. It means the car was driven very hard.
Actually it might mean that the rear calipers are progressively locking up. If a car has been driven hard, it's the front brakes that will go first, not the rear. And unless the car is older than its 20K miles suggest, the transmission leak should be covered under warranty. For that matter, so should the rear brakes unless it really is caused by standard wear-and-tear (seems doubtful to me).
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