How to Sell Cars on Consignment

by Pamela Gardapee

When you sell a car on consignment, you do the selling and receive a commission on the sale. You can make money off the sale of a car without keeping a large overhead of cars for sale. The contract will define how much you make in commission from each sale.


Apply for a dealer's license from the state you reside in and plan to sell cars on consignment from. Once you have that license, apply for a federal ID number from the IRS and a state seller's permit from your local State office.


Draw up a contract that states exactly what you as the seller will do to sell the car. Make sure to include how much you will charge per sale. This can be done with a percentage or a set fee. Also include a minimum selling price, a contract expiration date, how funds will be paid and how any damage the car sustains while under consignment will be handled. It is best to have a lawyer look at the contract to make sure it covers all liabilities and payments.


Find a property lot that has a high traffic area. Selling cars on consignment will only work if people can see the cars. A corner lot on a busy street is perfect to sell cars.


Detail the cars so they look appealing to anyone passing by. Many owners have already done this, but most will rely on the third party seller to do the work to make the car appealing to buyers.


Keep the title and the keys for the car that is being sold on consignment. This way the car is ready to test drive and sell when a potential buyer is ready. Have a signed title all ready to go.


Arrange the closing transaction. Fast sales are what owners are looking for when selling the car. After the sale, call the owner and plan a time to meet and complete the contract according to the terms set forth.

Items you will need

About the Author

Pamela Gardapee is a writer with more than seven years experience writing Web content. Being functional in finances, home projects and computers has allowed Gardapee to give her readers valuable information. She studied accounting, computers and writing before offering her tax, computer and writing services to others.

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