What is consignment?

The deposit-sale is an alternative method of buying / selling. The consignment shop exists for clothing as well as for cars. Concretely, it is a question of leaving the management of the sale of a good to a professional. In the specific case of cars, this mode of sale is between the sale of a car with a dealer and the sale directly to a private individual .

How it works ?

On the seller side, selling a car to an individual is never an easy affair . It is a time-consuming and risky process: taking pictures, posting advertisements, managing calls (even the less serious ones), meeting with potential buyers, etc. The consignment shop allows you to solve some of these problems by offering a showcase for your car. Concretely, you entrust the sale of your car to a professional who is responsible for selling it by all means during the term of the contract which can range from 1 to 2 months ; The showcase can be physical or virtual, that is to say that some consignment shops will offer to display your car in a parking lot.during the term of the contract while others will only manage the posting of advertisements on the internet and will subsequently organize visits with potential buyers.

Most consignments offer both options, so you need to choose the one that works best for you. In both cases, the professional becomes the agent for the sale of your car during the term of the contract. Regarding the cost, the professional is remunerated through a commission which depends on the selling price of your car. This commission varies among different professionals, so it is important to compare offers.

The advantages and disadvantages of consignment

The main advantages of consignment

Visibility for the car:the obvious advantage of consignment is of course the visibility that it offers to your car. The used car market is very competitive and the ad sites contain an exuberant number of car listings. For this, calling on a professional to promote your car can be interesting. When it comes to a physical storefront this allows buyers to see your car directly on site and the system is similar to that of a dealership for a lower price. In the case of a virtual showcase, professionals are able to boost the advertisement of your car in order to make it more visible on the various ad sites. So in either case, your car will reach more potential buyers than if you try to sell it on your own.

Ease and time saving: another significant advantage is the comfort that calling on a professional brings. During the term of the contract, the agent takes care of everything for you. In addition, during this period, if the display is physical, the consignment store is responsible for your car in the event of theft or damage (within the sales depot).

The security of the sale: selling your car to a private individual involves risks, particularly during payment. Scams are common on ad sites and hiring a professional helps you avoid them. Payment is secure and the money is yours.

The main drawbacks

The exclusivity of the contract: the downside of the consignment shop is that your car is blocked for the duration of the contract. This is an exclusive contract, so you cannot sell your car on your own. Some professionals still offer possibilities for terminating the contract. Selling your car through another intermediary amounts to paying the entire commission provided. In addition, the consignment store differs from the concessionaire because there is no obligation of success. You can therefore find yourself after the end of your contract with an unsold car.

The cost: the selling price of cars is of course more interesting than that of a trade-in. You will therefore sell your car at a better price. But the service comes at a cost, and the sale price also contains the commission you owe the trader. Thus, you will receive a little less money at the time of the sale than if you sell your car directly to a private individual, at the cost of peace and serenity.

Liability:  unlike the dealer, the agent for the sale of your used car takes no responsibility for any problem that arises after the sale. The car is not verified and is sold as such to the buyer (except in the case of damaged or broken down cars ). You will therefore be solely responsible if a breakdown occurs after the vehicle has been sold. It is therefore very important to make sure that your car is in good condition before selling it by a consignment store because you will be solely responsible in the event that the buyer claims a hidden defect .