What is Vehicle Consignment?Usage of cars and other automobiles has increased more than ever before. Different models of cars are doled out and put in the market for sale. When a new model is launched you may consider buying it. What will you do with the old car that is parked outside your home?
Your need and affordability are only of one car. Then either you keep using your old car and forget your wish of buying the new car or sell the old car and buy the newly launched car.
It may be easy to buy the new car. Go to the showroom and book one. Once the documentation and paperwork are done with and payment also made it will be delivered to your address. It is so simple. But is the selling of your old car that easy.
Consignment is a preferable option
No. the best approach is the go for vehicle consignment. You drop off your car that you wish to sell at the car consignment store and let the storekeeper do the rest of the work.
Once it is sold you will be given the price of the car minus their commission.
However, it is not as simple as it looks. There are several steps involved in the sale of these used cars too. There is a lot of paperwork and other works to be done before the car changes hands.
Let’s go into the details of how the vehicle consignment works.
- The market value is determined. When you take the car to the consignment dealer the first step will be to conduct an appraisal. The history, mileage, condition, and everything will be checked. Then a valuation will be presented to you. This is the price that the store keeper believes he or she can sell the car for.
- Then the car has to be marketed. This will be done by the store owner. When it is done in a proper way the car may be sold quickly and also at the right price. Usually, such stores have a customer service team. They will deal with everything professionally. Today they even use the social media and the digital mode to advertise for your car. It may be even put in some premium listings. You can talk in detail about the services they offer before the deal is sealed.
- Only on setting the right price you and the consignment dealer will benefit. It is advisable to leave the price setting to the professionals as they have a lot of experience in selling the used cars. They try their best to get the highest price ever possible in the market at the time of selling. Generally, a 10-20% of the sale value is given as a fee to the consignment stores.
- A little of negotiation takes place and you agree to a price. Then begins the paperwork. The consignment store will handle the buyer inquiries, test drives and all the other work the sale deed requires. If an experienced hand deals, in all this no flaw will be left and it will be a hassle free transfer. Also, you can save a lot of time and effort. The consignor will also handle the buyer negotiations which can be really a stressful process. And handled by an expert will create a less of a hassle rather than you a novice.
- Even for buyers, it is convenient to buy from a consignor. They get to know the details with ease and everything is handled professionally. They feel a sense of trust in the whole deal and may not hesitate to pay a few hundred or so dollars extra too. In fact when a professional deals with the buying and selling the deal goes off smoothly and benefits all the three parties to the maximum. Also, the buyer may not be able to pay cash at the time of buying then, the consignor may arrange for a lender. Then the buyer gets the car shipped to his or her premises via the consignor. This is a huge burden that is taken off the shoulders of the seller. So you can say that selling the car directly is such a big hassle but a car consignment is what to go for when you wish to sell your old car.