Learn Why You Should Use Car Consignments when Selling Your Car
Posted Wednesday, Aug 16, 2023
If you are interested in selling your car but want a good price, then you may have heard of car consignments. This option is gaining traction in the used car market, especially because it allows private sellers to get access to experienced sales professionals along with the ability to remove one’s self from the entire sales process altogether.
What this means for the seller is that they no longer have to bother about negotiating and taking calls from potential buyers when listing their car. Rather than having to put up with an endless number of test drivers and “tire kickers” who may or may not end up purchasing the car, consignments allow private sellers to get the best deals since the entire process is handled by experienced used car salesmen who know how to handle just about every type of customer, along with answering their queries. Furthermore, with their vast experience, selling your car for top dollar is just another Tuesday in the lives of professional used car salesmen.
Car Consignment Explained
To consign a car means to allow a used car dealership to sell the vehicle on your behalf. Of course, the dealership will charge a nominal fee for their services. But, the investment will be worth it since after consigning the vehicle the used car dealership will be responsible for not only selling the vehicle at the agreed-upon price but for sprucing up its condition as well.
This means, the used car dealership is going to clean and condition the car, as in performing any quick repairs, photograph the vehicle for the listing, and then promote and list the vehicle. The used car dealership will also be responsible for the entire shipping process once the vehicle has been sold.
So, what’s in it for the used car dealership, you ask? Well, used car dealerships can make a profit out of consigning cars by charging the seller a small fee, otherwise known as a consignment fee. Of course, the amount of the consignment fee is going to mainly depend on a broad range of factors from the condition of the vehicle, to its make and model and even the features and the vehicle history report.
The best part for those folks who go for consigning their vehicle is that you get to compare the service you want to use based on their consignment fees and if the price they are able to get is in your favor.
Finding the Right Consigner for Your Car
The real challenge is not in getting your car sold via a consigner but in finding the right consigner for the job. While it is a well-known fact that consigning a vehicle is a great way of getting more for your car, as compared to selling it by yourself. However, that is only possible if you find a reputable used car dealership with experience in consigning cars.
The best way for you to find one is by doing some research in the market and asking around. You can also read reviews and compare the services of various used car dealerships that are offering car consigning. Another good way to gauge whether or not a used car dealership will be able to provide you with a quality service is by taking a quick look at their existing vehicle listings online. That should give you a good idea of their level of expertise in terms of conditioning and promoting vehicles.
Once you have picked a few used car dealerships offering car consigning services, give them a call and tell them what price you are looking for, and if they will be able to sell your vehicle for that amount. If you plan on buying another used car, then it’s best to choose used car dealerships that have a large inventory of vehicles to choose from so that you can get a better deal.
Apply for Auto Finance
Now that you’ve got your big brother’s hand-me-down clunker out of the way, it’s time to find a decent vehicle that’s within your budget. While the dealership may have made a killer deal for you while selling your old car, chances are, it’s still not enough to pay for a new model vehicle. This is where auto finance comes in.
While auto finance is available through banks, lenders, and used car dealerships, clients must first decide how much they are willing to spend on a vehicle. Because of the wealth of options in terms of vehicles and auto financing, it is up to the customer to know exactly what type of vehicle they are looking for along with the features they need (and those they can do without).
You wouldn't want to waste money on an SUV when a simple sedan would suffice. Furthermore, the greater the price the higher the premiums so it’s best to be honest about your needs when buying a car.
Another good rule of thumb is to restrict your ongoing expenditures (maintenance, loan payments, and insurance) to no more than 20% of your family's income. This establishes a buffer so that you don't end up paying too much for the car in relation to your other expenses. It is important to note that a vehicle, new or used, begins to depreciate the moment you drive it off the dealership lot, so keep that in mind when choosing a car.
The Internet Car Lot is a great online resource for all those who are looking to replace their existing cars by selling them as consignments to used car auto dealerships. The platform is also home to a plethora of vehicle and auto financing options and advice that you can use to make a more informed decision.
