Top Tips for Selling Cars on Consignment

Selling cars on consignment lets you take a hands-off approach while maximising your profit. A consignment dealer handles everything—listing, buyer inquiries, negotiations, and closing the sale. This article will explain how car consignment works, its benefits, and steps to get started.

Key Takeaways

• Car consignment involves using a third-party consignment dealer to handle the entire selling process, including listing, inquiries, negotiations, and finalising the sale, which can lead to a higher selling price and less hassle for the seller.
• Effective car consignment strategies include thorough vehicle preparation, such as cleaning and repairing, collecting maintenance receipts, and obtaining a vehicle history report using the VIN to attract potential buyers and justify a higher price.
• Platforms like Purr offer comprehensive consignment services, including professional marketing, negotiation, secure payment methods, and DMV paperwork handling, ensuring a safe, efficient, and profitable car selling experience.

Understanding Car Consignment

Car consignment is a process that allows you to sell your vehicle through a third party, typically a consignment dealer, who handles the entire transaction on your behalf. This means you don’t have to worry about listing the car, dealing with inquiries, or negotiating with buyers. Instead, you pay a consignment fee for the service, which is often offset by the higher selling price you can achieve through professional marketing and sales tactics.

One of the significant advantages of car consignment is:

• the potential to earn more money compared to selling your car to a dealership or trading it in
• Consignment dealers use their expertise and market reach to fetch top dollar for your vehicle, making it a more profitable option
• Consigning your car saves you from the hassle of private sales, where you might have to deal with numerous potential buyers, each with their demands and questions.

Good consignment programs often include extra services like vehicle detailing, professional photography, and access to dealer-only marketplaces, which can significantly boost your car’s appeal and selling price. Furthermore, the consignment process can extend your car’s market reach to buyers across the country or even internationally, increasing the chances of a quick sale.

In essence, car consignment simplifies the selling process, saving you time and effort while maximising your profit. It poses less risk compared to other selling methods, making it an ideal choice for those looking to sell their car fast and efficiently.

What is Car Consignment?

Car consignment involves entrusting your vehicle to a third party who manages the entire selling process for a fee. This third party, usually a reputable consignment dealership, ensures that your car sells quickly and for a fair price by leveraging their marketing and sales expertise. The consignment company handles everything from:

• listing the car
• communicating with potential buyers
• finalising the sale
• delivering the vehicle to the new owner

Reputation is crucial in the consignment business. A reputable consignment company can establish trust with buyers, ensuring that the transaction goes smoothly and that your car sells for its true value. This trust is built through transparent processes, professional handling, and a proven track record of successful sales.

How Car Consignment Works

When you consign your car, the consignment company takes over all aspects of the sale. This includes:

• Creating a compelling listing with professional photos
• Marketing the car across multiple platforms
• Handling inquiries
• Negotiating with potential buyers

Essentially, the consignment dealer does the heavy lifting, allowing you to set your price and let the experts handle the rest through a consignment agreement.

The process of consigning your car typically involves the following steps:

1. Provide details about your car, including its make, model, condition, and any unique features.
2. The consignment company uses this information to market the vehicle effectively and attract the right buyers.
3. From listing to delivery, they ensure that every step is managed professionally, maximising the chances of a successful sale.

Evaluating Your Vehicle for Consignment

Before consigning your vehicle, it’s essential to thoroughly evaluate its condition to ensure you get the best possible price. This involves a detailed assessment of both the car’s exterior and interior, addressing any cosmetic issues, and gathering all necessary documents. A clean and well-maintained vehicle is more appealing to buyers and can sell for a higher price.

Start by cleaning your vehicle thoroughly, both inside and out. This includes vacuuming and cleaning the interior, washing the exterior, and even cleaning the engine compartment to convey that the car has been well-maintained. Address any cosmetic issues, such as dents or scratches, using services like paintless dent repair if there’s no paint damage. Fix or replace any broken items to improve the car’s overall appeal.

Collect all necessary documents, including maintenance receipts, window stickers, and receipts for any modifications. These records show potential buyers that the vehicle has been well cared for, which can justify a higher selling price. A professional appraisal can also be beneficial, providing insight into your car’s market value and helping you set realistic pricing expectations.

Importance of Vehicle Identification Number (VIN)

The Vehicle Identification Number (VIN) is crucial for verifying a car’s history and providing essential details about the vehicle. By obtaining a vehicle history report through the VIN, you can reveal past accidents, the number of previous owners, and any outstanding liens, ensuring that your car has not been involved in fraudulent activities.

Having a comprehensive history report can:

• Reassure potential buyers about the car’s legitimacy and condition
• Make them more likely to trust and proceed with the purchase
• Boost the car’s appeal
• Help justify a higher selling price.

Collecting Maintenance Receipts

When selling a car on consignment, one crucial step is to collect all maintenance receipts. These records play a vital role in the selling process, as they provide a detailed log of the car’s upkeep and repairs. Maintenance receipts can help justify a higher selling price by showing that the car has been well cared for and reducing the perceived risk for potential buyers.

Presenting a well-documented maintenance history can:

• Reassure buyers that they are purchasing a reliable vehicle
• Highlight your commitment to regular car care
• Set your vehicle apart from others on the market
• Ultimately lead to a quicker and more profitable sale.

Setting the Right Price

Pricing your car correctly is key to attracting buyers and making a quick sale. The ideal price should reflect the car’s condition, desirability, and current market trends. An accurate pricing strategy can make the difference between a car that sells quickly and one that lingers on the market.

To determine the best price, consider consulting with experienced consignment dealers. These experts can provide valuable insights into market trends and help you set a competitive price based on your car’s history and condition. Additionally, it’s important to factor in consignment fees, which can affect the final sale price but are often justified by the higher selling price achieved through professional consignment services.

Consulting with Consignment Dealers

Consignment dealers bring a wealth of knowledge and experience to the table, helping you set a realistic and competitive price for your car. They consider various factors, including:

• the car’s make
• model
• unique features
• overall condition

to suggest an ideal price. Dealers also use their expertise to understand current market trends and vehicle desirability, ensuring that your car is priced to attract buyers.

Honesty about your car’s condition and history is crucial when consulting with consignment dealers. A seasoned consigner will provide guidance to help you set a fair price that reflects both the strengths and weaknesses of your car. Ultimately, while dealers can advise on pricing, the final decision rests with the seller.

Factoring in Consignment Fees

Consignment fees, which can either be a flat fee or a percentage of the sale price, should be factored into the final selling price. Typical consignment fees range from $250 to $1,000, or 5% to 15% of the final sale price, depending on the car’s condition, history, and features. Higher fees might be charged for rare, expensive, or difficult-to-sell cars.

Understanding the applicable consignment fees helps you set a realistic selling price and ensures there are no surprises when the car sells. By factoring in these fees, you can make an informed decision about the minimum amount you need to receive from the sale to meet your financial goals.

Marketing Your Car to Potential Buyers

Effective marketing is key to attracting potential buyers and ensuring your car sells quickly. Consignment companies use a combination of SEO, paid advertising campaigns, and remarketing ads to ensure your car’s listing reaches a wide audience. An active social media presence and engaging video content on platforms like YouTube and Instagram can also significantly influence car purchasing decisions.

Utilising multiple online platforms increases the visibility of your car listing. Here are some platforms to consider:

• AutoTrader.ca
• Kijiji Autos
• CarGurus
• Facebook Marketplace
• eBay

These platforms cater to different demographics, expanding your reach and increasing the chances of finding the right buyer. Additionally, some consignment companies offer financing and leasing options, making your car more attractive to potential buyers.

Professional Photos and Listings

High-quality photos and professional listings are crucial in making your car stand out. Professional photos highlight the main selling points of the car and attract potential buyers by giving them a better feel for the vehicle compared to static images. Consignment programs often include services like detailing and professional photography to enhance the car’s appeal and showcase it in the best light.

Photographing the vehicle comprehensively, including any flaws, is essential for transparency. Detailed and honest listings build trust with potential buyers, increasing the likelihood of a successful sale.

Utilising Multiple Platforms

Consignment companies should use various platforms to reach different demographics and increase visibility. Platforms like Facebook, TikTok, and Instagram cater to diverse audiences, enhancing the chances of finding the right buyer. Detailed descriptions and unique titles in listings can improve search engine visibility, driving more traffic to your car’s listing.

Purr’s marketplace offers financing options, making it easier for buyers who prefer payments over cash. This feature attracts a larger market, including those who might not have considered purchasing without financing options. On the Purr marketplace, you can browse, schedule a test drive, and purchase a car for a fair price.

Navigating the Selling Stage

Navigating the selling stage can be daunting, but consignment dealers manage communication with potential buyers, including answering calls and emails, handling inquiries, and viewings. This eliminates the risks associated with meeting strangers and ensures that only serious buyers are engaged.

Dealers provide potential buyers with the following services:

• Detailed information about the car, building confidence in the purchase and streamlining the process
• Advising on sales price and negotiation strategies
• Discussing new customers, ensuring a smooth and efficient selling experience.

Handling Inquiries and Test Drives

Dealerships typically manage all inquiries related to the car listings, providing detailed information to potential buyers to build confidence in the purchase. This ensures that buyers receive accurate and comprehensive details about the vehicle, reducing the chances of misunderstandings or miscommunications. Consignment dealers coordinate test drives and handle interactions with serious buyers, streamlining the process and eliminating the need for you to meet strangers or deal with “tire kickers”—those who have no real intention of purchasing the car.

Potential buyers can schedule test drives and ask pertinent questions through the dealership, making the process safer and more organised. Platforms like Purr ensure that all leads are managed professionally, allowing you to leave your car with the dealers who handle everything from inquiries to test drives.

Negotiating the Sale

Negotiations are conducted directly with the buyer on platforms like Purr, allowing both parties to agree on a fair price. Consignment dealers use their expertise in car values and market conditions to negotiate the best price on your behalf, ensuring you get a higher sale price. This expert negotiation helps in finding the ideal buyer who recognizes the value of your car and is willing to pay a fair price for it.

Once a price is agreed upon, the dealer closes the sale, and sellers receive their cheque promptly, ensuring a smooth and efficient transaction. The consigner also ensures that your personal information is not distributed to potential buyers, maintaining your privacy throughout the process.

Finalising the Sale and Transferring Ownership

Finalising the sale and transferring ownership involves several crucial steps, including secure payment methods and completing DMV paperwork. The buyer’s payment is kept in an escrow account, which reduces the risk for both parties by ensuring that funds are only released when all conditions of the sale are met. This method ensures that existing loans and consignment fees are paid before the remaining amount is transferred to the seller.

Sellers can expect to receive payment within 14 days after the vehicle is sold through consignment, making the process relatively quick and efficient. Until the sale is finalised, the seller retains ownership of the vehicle and the title. This arrangement ensures that you remain in control until the transaction is complete.

Secure Payment Methods

Using an escrow account provides a secure method for holding the buyer’s payment until the sale is finalised, ensuring reduced risk for both buyer and seller. This secure payment method eliminates the need to chase buyers for your money, providing peace of mind and a smooth transaction process.

Payments are safe and secure with Purr, which works with thoroughly vetted dealer partners to ensure that all transactions are straightforward and secure. This emphasis on trust and security helps build confidence in the platform, making it a reliable choice for car consignment.

Completing DMV Paperwork

The dealer handles the transfer of the title and completes the DMV paperwork, ensuring a smooth transaction and relieving you of the time-consuming and often confusing task of dealing with bureaucracy. This professional handling of paperwork ensures that all legal requirements are met, reducing the risk of errors or delays.

Once all the paperwork is done, the dealer facilitates the payment transfer, making the entire process seamless and efficient. This comprehensive service ensures that both the buyer and seller experience a hassle-free transaction, with all details professionally managed.

Benefits of Using Purr for Car Consignment

Using Purr for car consignment offers numerous benefits, including the potential to earn more money, reaching a larger market, and ensuring safe and secure transactions. Purr provides a user-friendly and transparent platform for car sales, connecting buyers, sellers, and dealers in a beneficial sales model that emphasises transparency and efficiency. This platform is designed to deliver trust, financial reward, and high-quality cars to all parties involved.

Purr’s financing options allow sellers to reach an additional ~46% of the population that prefer payments instead of paying cash, significantly expanding the market for your car. Additionally, Purr offers dealership perks such as:

• financing
• extended warranties
• repairs
• and more

This makes your used car more attractive to potential buyers, ensuring your vehicle sells.

Earning More Money with Purr

Purr is a marketplace where you can sell your car with the assistance of an expert, simplifying the car buying and selling process by connecting buyers, sellers, and dealers in Canada. When selling with Purr, you can earn $2k to $6k more for your car compared to other selling options, thanks to the platform’s optimised sales process and professional handling.

An Authorised Purr Dealer schedules test drives, sells your car, and provides buyers with additional benefits such as warranties, repairs, financing, and insurance, ensuring a comprehensive and attractive package for potential buyers. This combination of expert assistance and added perks helps maximise your car’s selling price and appeal.

Safe and Secure Transactions

Purr emphasises trust and security in transactions, ensuring that all sales are straightforward and secure. To achieve this, Purr works with thoroughly vetted dealer partners to maintain high standards of reliability and professionalism. Selling a car on Purr is safe as it occurs securely on their platform with the support of an Authorised Purr Dealer, providing peace of mind for both buyers and sellers.

Purr offers a safe buying experience that includes reliable used cars, security, and transparent transactions, ensuring that everyone involved feels confident and satisfied with the process. This commitment to safety and security makes Purr a trustworthy choice for car consignment.

Summary

In summary, car consignment offers a convenient and profitable alternative to selling your car privately. By entrusting the sale to professionals, you can save time, avoid the hassles of private sales, and potentially earn more money. From understanding the consignment process and evaluating your vehicle to setting the right price and marketing it effectively, this guide has covered all the essential steps to ensure a successful sale.

Using platforms like Purr can further enhance your car consignment experience, offering additional benefits such as financing options, dealership perks, and secure transactions. With the right approach and the support of experienced consignment dealers, you can sell your car quickly and confidently, making the most of this efficient and effective selling method.

Frequently Asked Questions

What is car consignment?

Car consignment is when a third party sells your vehicle for a fee and handles the entire transaction process.

How do consignment dealers help set the right price for my car?

Consignment dealers help set the right price for your car by providing expertise on market trends, vehicle desirability, and the car’s history, ensuring a realistic and competitive price.

What are the typical consignment fees?

Consignment fees typically range from $250 to $1,000 or 5% to 15% of the final sale price.

How does Purr ensure secure transactions?

Purr ensures secure transactions by using escrow accounts to hold the buyer’s payment until the sale is finalised, reducing risk for both parties involved.

What benefits does Purr offer for car consignment?

Purr offers a user-friendly and transparent platform, financing options, dealership perks, and ensures safe and secure transactions, helping sellers earn more money and reach a larger market.