Are you thinking about selling your used car this year? Smart thinking.
Research shows that the prices of used cars rose more than 4% from January to February of 2023.
A smart way to sell your car is through car consignment, also called dealership consignment. Selling a car on consignment involves paying dealers to handle the used car consignment process for you.
The question is, why choose consignment car dealers? And is consignment auto sales the best choice? Here's a look at what vehicle consignment, including classic car consignment, involves and why you should choose consignment car sales.
Let's dive in!
What Does Used Car Consignment or Dealership Consignment Mean?
Consigning your vehicle involves co-signing the vehicle to another individual to get it sold. This other party will handle the sales process for you. All you have to do is pay them a percentage of your selling price or a flat fee for this service.
The best websites to sell a car online include Autotrader and CarGurus. Facebook Marketplace and eBay Motors are also some of the best websites to buy used cars.
Online car auctions are another option for unloading your used car with the help of another party.
What Are the Benefits of Consignment, and Why Is It a Smart Way to Sell Your Car?
If you're asking "How do I sell my car online" or "How can I sell my car to a dealer as easily as possible," you can't go wrong with the consignment process. As we mentioned earlier, the main benefit of consignment is that it requires no work on your part to smoothly sell your vehicle. This makes it a convenient process for busy individuals.
Also, let's say you use an auto dealer to sell a used vehicle. Consignment auto dealers have already created markets for selling your car efficiently. That means you don't have to spend so much time and energy trying to find a buyer yourself.
What are the Biggest Advantages and Disadvantages of Consignment Car Sales?
A key advantage of consignment car sales is that you can generally charge a higher selling price when you work with a high-quality consigning dealer. The company's reputation alone can be enough to help you to make more on your sale. That's why consignment is especially the best way to sell a classic car.
The disadvantage of consignment, though, is that if you don't partner with a good consigner, the sales process might drag out longer than you expected it to. In addition, you may not receive as much money out of the deal.
Also, the fee that your consignment dealer charges might be too high for you. This fee may be anywhere from 5% to 15% of your final car sales price. Alternatively, it might be a fixed fee of $250 to $1,000.
Yet another disadvantage of consignment sales is that you won't have as much control over the sales process.
How Does the Consignment Auto Sales Process Work?
The car consignment process involves several steps. Let's take a look at how this process works when you want to sell your car.
Share Car Details with the Consigner
When selling a car in 2023 using the consignment process, you'll first want to tell your consigner everything you know about the vehicle.
For instance, tell them how the car drives and what maintenance you've done on the vehicle. In addition, let them know how long you've owned the car. Also, if you have any documents showing this information, like repair receipts, make copies to give to the cosigner.
Online car buyers want to know this information, so producing this information upfront may help you to increase your sales price.
Establish Your Vehicle Price
The next step in selling your car with a consigner is to agree to a just sales price with the consigner. Damage to the car may lower your sales price, whereas modifications made to it may increase the price.
Also, don't forget to factor your consignment fee into your final price.
Stay in Communication with the Consigner
Once the consigner begins the sales process, you'll want to keep in touch with them to find out if the car has attracted interested buyers.
If necessary, you might need to change the sales price to improve the car's chances of being sold. The dealer might also need to consider targeting a different city or region to unload the vehicle when selling online, for example.
Then, when you have a buyer, the consigner should handle the sales process and paperwork for you. This includes filling out all necessary department of motor vehicles paperwork. It also includes transferring the car's title from you to the buyer.
Shipping the Car
If the buyer of your car is in another state, the car will need to be shipped to them. Fortunately, a reliable transport service can easily ship a car to another state.
Cross-country car shipping may cost several hundred dollars to close to $2,000. It all depends on whether the transport company uses an open carrier or a closed carrier. It also depends on the distance between the car's location and its final destination.
A car shipping calculator can help with determining how much it will cost to ship a car across state lines.
How Long Does Selling a Car on Consignment Take with Consignment Car Dealers?
The consignment vehicle sales can be rapid when you work with a consignment dealer. Used cars typically sell within 60 days, although yours may sell faster with the right consignment dealer.
How We Can Help with Vehicle Consignment, Including Classic Car Consignment, Shipping
Used car consignment, also known as dealership consignment or vehicle consignment, is a smart way to sell your car. When selling a car on consignment, you can pay one of today's best consignment car dealers to handle your transaction.
The consignment car sales process will save you time. You may also earn more if you work with a reputable classic car consignment dealer, for example.
At Nexus Auto Transport, we can assist you in the vehicle consignment process. Contact us to learn how we can ship a car to another state as part of the consignment auto sales process.
