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What is a Consignment Car?

Selling a car on consignment is one of the ways that you can employ when selling your car, where you typically work with a consignment agent of your choice to advertise your car and market it to potential buyers. A good consignment agent will typically advise you on what is a realistic and achievable final selling price to maximise your chance of selling your car. Typically, after the asking price of your car has been met, your consignment agent should also assist with the process of transferring ownership over to your buyer, as well as loan applications for your buyer if applicable. Generally regarded as the sales process that gets you the highest selling price, here are some other things for you to consider when deciding to consign your car for sale.

What Are the Benefits of Consigning Your Car?

Compared to selling your car as a direct owner, selling your car on consignment or through a consignment agent means that you won't have to deal with any of the paperwork pertaining to the transfer of ownership of the vehicle, which can be tedious for those who are unfamiliar with the process. Additionally, your consignment agent will also be the one helping you to take pictures of your car, advertise your car, and market your car to potential buyers.

Another thing to note is that your potential buyer is also likely a car owner who will want to get rid of his car before purchasing yours. Having a consignment agent on hand to assist with the sale of the buyer's car can actually go a long way in facilitating your potential buyer selling his car, and purchasing yours. Imagine a situation where you are selling your car as a direct owner, and your buyer is keen to purchase your car, but does not have someone to help sell his car - that could prove to be a major stumbling block to the sales process. Last but not least, the main benefit of selling your car through consignment is probably the fact that you are likely to get the highest price possible for your car - a point which we will discuss in the next segment.

Why Can I Get a Better Price When I Consign My Car?

An alternative way of selling your car is to sell your car directly to a dealer, who will buy in your car as an asset, and then list it for sale as their asset. This means that the dealer will have to take on the risk of buying your car, carrying out any repairs or refurbishments for it to be fit for sale, and also take on the depreciation risk of your vehicle. There is even the risk of the dealer losing money on your car if they cannot sell your car in a timely manner. Overall, this means that the price offered to you to take the car off your hands upfront, will understandably have to be lower than the market price, as they will need to factor in these financial risks. Remember that car dealers are businesses too, and they will most definitely need to make some money on the transaction - or it wouldn't be worth doing at all.

In contrast, in a consignment arrangement, the car asset remains in your possession throughout the sales process until the car is sold. This means that your consignment agent will not need to factor in as many financial risks associated with transacting your vehicle, and can help you top market it at the highest possible price that is realistic and achievable. This also means that you may have to wait a little while for your car to get marketed and sold, as opposed to a dealer buying it off you upfront. Overall, if you are in a hurry to sell your car, then selling it to a dealer for a lower price makes a lot of sense. However, if you are interesting in getting the best price possible for your car, then consignment would be the way to go.

How Do I Go About Consigning My Car?

If you are interested to consign your car for sale, simple click here to fill up a simple enquiry form, after which, we will be in touch with our preferred partners who will talk you through your options between selling directly and consigning your car for sale. It is a quick and easy process, and is free to enquire.


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