Dealer Consignment: Is it safe?

atwnsw1atwnsw1 Member Posts: 21
edited April 2016 in General
I live in Tampa, FL and have a car for sale on craigslist and autotrader. A car dealer called "Julians Auto Showcase" in Newport Richey, FL inquired if I would list my car on consignment with them. I had never heard of auto consignment and wonder if this is really legit. Since the car is still in my name, what happens if there is an accident? Does my insurance cover the car wreck while they test drive the car with strangers?

When I googled the company, I saw generally good reviews but the concept of consigning a car is totally foreign to me and outside my comfort zone without more information.

Thanks in advance.
Anthony

Comments

  • texasestexases Member Posts: 10,058
    I'd think their profit on any sale would hit you pretty hard. I'd sell it outright to a dealer or Carmax instead. 
  • kyfdxkyfdx Moderator Posts: 207,899
    texases said:

    I'd think their profit on any sale would hit you pretty hard. I'd sell it outright to a dealer or Carmax instead. 

    Ditto on this. The dealer would probably take 30%, minimum.

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  • sdasda Indian Land, SCMember Posts: 5,736
    I had good luck selling my 2001 Aurora in 2007 on consignment. Yes it ate into my profit, but my wife did not want strangers coming to the house or for me to meet them some where. Car Max offered me less than $6k which I thought was too low. It ended up selling for around $9k, and it was a positive experience. I did do research with the BBB, etc. before consigning.

    2018 VW Passat SE w/tech, 2016 Audi Q5 Premium Plus w/tech, 2006 Acura TL w/nav

  • steverstever Guest Posts: 52,454
    What were your consignment fees, @sda?
  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaMember Posts: 64,482
    It really depends on the reputation of the consignor. They can be absolutely great, or really REALLY bad. You'll want to look carefully at reputation (Yelp, BBB, etc), at their commission rates, if they charge a "floor fee" (monthly charge to keep the car), and ask about how they screen buyers. Some consignors offer financing to buyers, which would be a plus IMO.
  • sdasda Indian Land, SCMember Posts: 5,736

    It really depends on the reputation of the consignor. They can be absolutely great, or really REALLY bad. You'll want to look carefully at reputation (Yelp, BBB, etc), at their commission rates, if they charge a "floor fee" (monthly charge to keep the car), and ask about how they screen buyers. Some consignors offer financing to buyers, which would be a plus IMO.

    All good points. If I remember correctly it was a flat fee of around $300 to keep the car on their lot. They would have one of their associates qualify the prospective buyer and ride with them during any test drives. The consignment dealer offered bank financing, and extended warranties. If they sold the car above a set price, they kept the difference.

    2018 VW Passat SE w/tech, 2016 Audi Q5 Premium Plus w/tech, 2006 Acura TL w/nav

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