Selling a vehicle can be time-consuming and frustrating so it’s not surprising that many car owners choose to sell their vehicle through a used car dealership or consignment lot. For some having someone else taking care of selling a vehicle is worth getting less in their pocket when their car sells. If you decide to opt for a used car dealership or consignment lot to sell your vehicle visit theAlberta Motor Vehicle Industry Council (AMVIC) websitefor a list of licensed businesses (and run far away if the business you’re dealing with isn’t licensed as it’s required by law).
When should you sell your vehicle by consignment?
If you don’t have the time or technological know-how of how to advertise show and sell your car it may be worth it to pass on that job to someone else. Some of us just don’t want the frustrations that come with selling a vehicle and that’s okay!
You will generally get less in your pocket when you sell by consignment as you are essentially paying the dealer to do all that advertising showing and selling work for you.
In the end it’s a decision you have to make.
Get It In Writing
If you decide to go with selling a vehicle by consignment make sure you have a written contract. This will ensure that you the consignment business and your vehicle’s new purchaser are protected. You want to communicate that you have given permission to sell your vehicle and take care of any loose ends to avoid problems down the road. Here’s what the contract should include:
What about insurance?
Generally yourpersonal insurancewill not cover your vehicle while it is at a consignment lot or dealership. However these businesses will have their own insurance known as a “garage policy.��? You’ll want to discuss insurance coverage with them to find out what their policy will cover. You should alsocontact your brokerto inform them where your car will be going. They’ll be able to answer any questions you might have about insurance while you try to sell your vehicle.
When Your Vehicle Sells
You should be receiving a payment from the consignment business within 14 days of the vehicle being sold along with a bill of sale. At this point you can cancel your insurance policy bycontacting your broker.