Used Car Consignment: A comprehensive guide

Used car consignment: A guide for sellers

If you're looking to sell your used car, you may have considered using a consignment service. But what exactly is used car consignment and is it right for you? In this article, we'll take a closer look at how used car consignment works, the pros and cons of using a consignment service, and some tips for making the most of the consignment process.

Used car consignment is growing in popularity in Australia, where the trend is driven by a combination of factors, including the convenience of the consignment process, the potential for a higher sale price, and the growing popularity of online marketplaces for used cars.

What is used car consignment?

Used car consignment is a service that allows you to sell your used car through a dealership or other third-party seller. Instead of selling the car yourself, you can turn over the task of advertising, negotiating, and finalising the sale to a professional. In exchange, the consignment service takes a percentage of the sale price as a fee.

How does used car consignment work?

To begin the consignment process, you'll need to find a consignment service that is willing to take on your car. Some dealerships offer consignment services, or you can search online for specialised consignment companies. When you contact a consignment service, they will typically ask for details about your car, such as its make, model, year, condition, and mileage. Based on this information, the consignment service will provide you with an estimated sale price and a proposed fee for their services.

If you agree to the terms, you'll need to bring your car to the consignment service for an inspection. This is to ensure that the car is in good enough condition to be sold and to give the consignment service an accurate idea of its value. Once the inspection is complete, the consignment service will create a listing for your car and begin advertising it to potential buyers.

If a buyer expresses interest in your car, the consignment service will handle the negotiation process and finalise the sale on your behalf. Once the sale is complete, the consignment service will deduct their fee from the sale price and pay you the remainder.

Pros and cons of used car consignment

There are a few advantages to using a consignment service to sell your used car. One of the main benefits is that it can save you time and effort. Advertising, negotiating, and finalising the sale of a car can be time-consuming and stressful, especially if you're not familiar with the process. By using a consignment service, you can offload these tasks to professionals who do this for a living. The other big saving is hassle. If you have ever sold your car online you will know all about the endless junk enquiries you get from time wasters, low-ballers and people looking for an unreasonable deal.

Another potential advantage of used car consignment is that it can help you get a higher price for your car. Consignment services have experience with pricing and negotiating, and they may be able to secure a better deal for you than you could get on your own. Consigners typically advertise on a variety of online car selling portals exposing your car to a huge pool of car buyers, have a professional secure premises to store and showcase your car and are constantly receiving enquiries about specific cars that buyers are looking for.

However, there are also some drawbacks to using a consignment service. One of the main drawbacks is the time it takes to sell. If you are utilising a consignment service over simply selling your car on the spot to a Dealer, you aren’t getting cash instantly. You are generally needing a higher sale fee to cover the consignment fees and the top dollar you are hoping to gain from the sale of your car. With that in mind, if you have time on your hands, then consignment can be the perfect strategy so don’t be too put off if you aren’t needing the cash right away.

Tips for successful used car consignment

If you decide to use a consignment service to sell your used car, there are a few things you can do to increase your chances of success. Here are a few tips:

• Make sure your car is in good condition: Before you bring your car to a consignment service, make sure it is clean and in good repair. This will make it more attractive to potential buyers and increase the chances of a successful sale.
• Set a competitive price: The consignment service will provide you with an estimated sale price, but it's important to do your own research as well. Look at online classifieds and dealership websites to get an idea of what similar cars are selling for in your area. This will help you determine a fair and competitive price for your car.
• Negotiate with buyers: Even if you're using a consignment service to handle the sale of your car, you may still need to negotiate with buyers. Be prepared to discuss the price, financing options, and any other details of the sale.
• Keep an open mind: While you may have a specific price in mind for your car, it's important to be flexible and open to negotiation. Be willing to consider offers from buyers and work with the consignment service to find a mutually satisfactory agreement.

When you choose Mr Wheels as your consigner, we can help you with organising your repairs, roadworthy and all the paperwork during the sale process. We can help the buyer organise finance and make the whole process seamless.

Conclusion

Used car consignment can be a convenient and potentially lucrative option for selling your used car, especially in Australia where it is a popular choice for many sellers. By using a consignment service, you can save time and effort, and potentially get a higher price for your car. However, it's important to consider the cost of the consignment service and the potential for a slower sale. By following the tips outlined in this article, you can increase your chances of a successful used car consignment experience.