Selling a car is a fairly troublesome procedure that usually takes a lot of the owner’s time and effort. Finding buyers, viewings, test drives, and discussing terms can last for weeks, if not months. If you do not want to handle this personally, you should contact a consignment car dealership. Its specialists will find a buyer for your used car and make sure you receive the best terms. We explain how this vehicle sale scheme works.
What is consignment car sale?
Consignment car sale is an intermediary service in which an organization takes over the tasks of finding buyers and arranging the transaction. Usually, it performs the following work:
- places advertisements;
- receives calls and provides consultations;
- shows the vehicle and, with the owner’s consent, arranges a test drive;
- stores the car on a specially prepared secure lot;
- handles periodic car maintenance, including washing;
- prepares the sale and purchase agreement;
- monitors the legal cleanliness of the transaction;
- checks that the documents are prepared correctly.
The main part of the intermediary’s fee is calculated as a percentage of the car sale amount. However, certain services from the list may be provided for a separate fee. Most often, additional charges apply if the owner takes the car back and terminates the agreement with the dealership.
What vehicle can be sold through a consignment lot?
Everything depends on the specialization of a particular consignment lot. Some organizations work only with passenger cars, others with minibuses, and others with trucks and buses. TRUST AUTO car pawnshop accepts any vehicles for consignment sale regardless of their class, model, or year of manufacture.
The main requirement of our lot is the legal cleanliness of the used car. We assist with selling vehicles that are not wanted, seized, or pledged. If you are not the direct owner of the car, you will need to provide a general power of attorney.
Advantages of selling a car through a consignment dealership
The main advantage is significant savings of time and effort. You do not need to take time away from work and everyday matters. So while the employees of the consignment dealership handle the car sale, you can earn money, rest, or even go on vacation.
The list of advantages also includes:
- guaranteed security – specialists carefully check the agreement and other documents;
- benefit – because the dealership’s fee depends on the transaction amount, it is in its interest to increase the price;
- car protection – the car is kept on a guarded lot, and the intermediary is responsible for it during storage.
How is the sale and purchase agreement prepared during consignment car sale?
It is important to understand that when selling a car through a consignment dealership, the transaction is still concluded between the owner and the buyer. The car is not additionally re-registered to the intermediary. This saves both your time and money. In addition, if you want to take the vehicle back, doing so will be very easy.
There are two ways to prepare a sale and purchase agreement:
- At a territorial service center of the Ministry of Internal Affairs. The document is certified with the institution’s seal and the administrator’s signature. This makes it possible to register the car on the same day.
- With a notary. An employee of the legal office enters the agreement into the state register. After the transaction is completed by a notary, the buyer can contact any service center of the Ministry of Internal Affairs of their choice.
Documents required to conclude the agreement
- Vehicle registration certificate.
- Passport of a Ukrainian citizen and individual taxpayer number (RNOKPP) of the owner.
- Spouse’s consent if the car is jointly owned.
- Service history book for vehicles under warranty.
- General power of attorney for the owner’s representative.
Please note: passenger cars are accepted for tax-free consignment sale if their owners are selling their first car in the calendar year. The sale of commercial vehicles and each subsequent passenger car requires payment of a 5% tax and a 1.5% military levy. To determine the tax base, an independent car appraisal is mandatory. The expert assessment results are added to the document package.
Agreement terms and rights of the parties
A car sale and purchase agreement must specify the make, model, identification number, year of manufacture, and trim of the vehicle. If necessary, information about its technical condition may also be added. The seller undertakes to provide the car in proper condition, and the buyer undertakes to pay the agreed amount. If these terms are violated, the transaction will be considered invalid; it may be terminated by agreement of the parties or through court proceedings.
The consignment lot will not only help prepare the agreement and sell the car, but will also monitor compliance with the document’s provisions. By contacting an intermediary, you are guaranteed to receive the money from the sale of the used vehicle minus the consignment fee.
How to prepare a car for consignment sale?
The only requirement is to take care of the car’s legal cleanliness and satisfactory technical condition. If necessary, TRUST AUTO specialists will independently perform basic pre-sale preparation and find trusted service stations for repairing the vehicle. This allows you to place the car on the lot in ideal condition, increasing the chances of a quick sale.
When accepting used cars, the seller and the dealership conclude the following agreements:
- on intermediary service;
- on accepting valuable property for storage;
- on providing additional services, such as repair or marketing services.
What steps are needed to successfully sell a car through a consignment dealership?
If you want to sell a car with mileage or receive a car-secured loan, fill out an application on the TRUST AUTO website. Our specialists will contact you and clarify all service terms, including the fee for supporting the car sale and purchase and the cost of additional services.
After the details are agreed, a consignment sale agreement is signed. You bring the car to the lot, where it is inspected and appraised. If you need to pay tax, our specialists will be sure to inform you. We quickly find buyers thanks to a broad network of business contacts and extensive experience in this field. You can issue a general power of attorney so that you do not have to participate directly in the sale process. After the terms of the agreement are fulfilled, we give you the money in cash or transfer the required amount to your card.
