CAR CONSIGNMENT

Car Consignment

CAR CONSIGNMENT

 

Car Consignment refers to the process of allowing a dealer to sell the vehicle on your behalf but retaining legal ownership of the vehicle until it is sold. Depending on the technique followed by the dealer it can be decided to leave the vehicle at his showroom or not. Leaving the vehicle at the showroom can lead to a faster sale as the interested buyers can see the vehicle and decide if they want to buy or not. If the vehicle is not left at the dealer’s showroom every time there is a prospective buyer you would have to drive down to show your vehicle which can be time consuming and troublesome. Consignment dealers charge only a small fee and take a small percentage of the sale proceeds. In exchange they will help you determine a fair price for your vehicle.

Methods of Selling –  CAR CONSIGNMENT

Direct Selling

Direct selling refers to when you sell the vehicle as a direct owner to the buyer. The only hassle being it takes time but involves very little paper work. The first step would be to get a good service done of your vehicle and take a good picture of the vehicle and post an ad on the car mart website. It is advisable to put up a good ad for your vehicle so that it stands out from the rest. A standard ad may cost $58 whereas an extra features ad may cost around $98. Include the latest interesting modifications done on the vehicle, how often it is serviced etc. When you find a prospective buyer, SG car mart has all the relevant documents that are needed to complete the sale. Direct selling in our opinion is way to get the best price for your vehicle.

Trade-in for another car at a used car dealership                                               

Trading your car for another is a quick and easy process that can be handled by a dealer. You can send the vehicle to a mechanic for inspection to check on the condition of the vehicle.

Selling to a dealer

Getting your vehicle to be sold by a dealer is the easiest way to sell your vehicle, the only disadvantage being the dealer would like to keep his profits and also cover the overhead costs, you may get a value lower than the market value. The dealers will resell the vehicle at a higher value.

Selling by auction to dealers via Quotz

SgCarMart Quotz is an auction service for dealers to bid for your used vehicle. Going from dealership to dealership trying to get the highest offer for your vehicle can be extremely time consuming. For a small fee, SgCarMart Quotz will do that for you via a bidding system which reaches out to 300 used car dealers. Quotz will get the highest selling price in one working day and the vehicle will be transacted should the seller accept it. 

 Advantages of Car Consignment

Creates Immediate Public Exposure

The dealer will do the work for you

Paper works will also be handled

Consignment Agreements and Responsibilities

When entering into a consignment agreement with a member of the public, all contracts must be in writing and must contain all the below terms and conditions as required 

1.Formation

This is the agreement between the owner and the dealer specifying the terms for the sale of the vehicle. The contract needs to be signed by both the dealer and the owner. This contract gives the dealer specific rights to sell the vehicle on behalf of the owner for the period specified in the contract.

2.Sale Price

 The Dealer may sell the Vehicle for more than the price mentioned as the Minimum sale price in the agreement and he also has the right to hold back the excess amount as his commission.

3.Settlement

When the dealer sells the vehicle, it is his responsibility to pay the sale proceeds to the owner within two business days. In case payment has been made by check, till the check is honored, it will not be considered as sale. The Dealer will not release the vehicle to the Purchaser till he receives the payment in full.

4.Ownership

Till the payment is received in full, the ownership rights will be held by the owner and will be given to the purchaser only after receiving the entire payment of the vehicle.

5.Responsibility of Repairs

Owner will be responsible for the cost of repairs of any defects or faults identified prior to the sale of the vehicle.

6.Vehicle declared unfit for sale

The dealer can provide a notice to the Owner if the vehicle if found to be unfit for sale and the owner in turn is responsible for any charges that are to be incurred to have the vehicle declared fit for sale or to be removed from the Premises of the Dealer.

7.Payment of Repairs

The dealer will not conduct any repairs on the vehicle without the consent of the owner. Any charges incurred by the dealer can be deducted from the proceeds payable to the owner after the sale.8.

8.Dealer’s responsibility

 The dealer will not be responsible for any loss or damage to the vehicle which are under consignment except for any theft or loss or damage which may have arised due to the negligence of the Dealer or due to the breach of the agreement.

9.Warranty Claims

The Dealer will be responsible to pay for warranty claims which arise about the quality or fitness of the Vehicle

10.Ownership and Encumberances

The Owner declares that the Owner has the right to sell the Vehicle. The Owner will provide the Dealer with a certificate from the Register of Encumbered Vehicles within two (2) business days after signing this Contract. The Owner will give the Dealer all licence and registration documents, owner’s manual and service records (if any) relating to the Vehicle within two (2) days after signing this Contract.

11.Ending the agreement

The agreement can be terminated by either the owner or the dealer by giving 24 hours notice to the other or at anytime prior to the sale of the vehicle. The owner will remove the vehicle within seven days from the Dealer’s premises. Any moneys due to the dealer will be paid by the owner before taking the vehicle.

12.Changing the agreement

Any variation in the contract must be in writing and signed by both the owner and the dealer.

13.Notice

Any notice required by this agreement should be given by direct communication, telephonic, electronically, fax, or post etc.

Factors to be considered

  1. Some dealers charge a percentage or some might charge a flat fee, on top of this the dealers might also charge a commission on the sale
  2. Check on the time period of the consignment, it could be from 30 to 60 to 90 days. A few may offer until sold options too.
  3. Inquire as to where they advertise.

PRODUCTS AND SERVICES

Car Consignment helps the owner to maximize his sale and also speed up the process of the sale.it is also a convenient and efficient option of sale.

Some Consignment dealers will offer guidance in the pricing but the leave the final decision to the owner but a few others expect that you follow a set pricing structure set by their office.Either ways the Consignment dealers know the market well and will try to get to get the best price for your vehicle.

The biggest advantage of the Consignment dealers is they handle the entire transaction. Any inspection of the vehicle by the prospective buyer, test drives, Buyer enquiries and paperwork will be handled by the consignment dealers.

The services provided by the dealers are;

  1. It helps in providing finance for buyers to purchase the vehicle
  2. Provides buyers aftermarket service contracts
  3. They help in shipping the vehicle to the buyers.

 CONCLUSION

Buying and selling of cars is a tedious and complicated process especially in Singapore due to the life span of the cars. The sale process can be very time consuming due to amount of paperwork. Consignment program allows you to sit back and relax while the dealer handles the sale for you. In turn you have to pay them a small charge or a commission from the sale proceeds.

 

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©2020 reachautoerpsg

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