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Selling via consignment

Consigning your vehicle is allowing a dealer to sell the vehicle on your behalf, but retaining legal ownership of the vehicle until it is sold.

 

Depending on the modus operandi of the dealers, you may or may not have to leave your vehicle at their showroom. Leaving your vehicle at the showroom would allow the sale process to be faster as interested buyers who have seen the advertisement can go down and have a look at it whenever they can. It will however, inconvenience you if you do not have a spare vehicle to use. Putting your vehicle at the dealership also exposes it to walk in customers.

 

Some dealers do not require you to leave your vehicle with them. However, each time there is an interested buyer who wants to view your vehicle. You would have to take some time out of your day to drive down to the dealership for the viewing. This can be a troublesome process that could go on for months.

 

The benefits of consigning your vehicle to a dealer is having someone experienced handle the entire sale process for you. From the photo-taking to uploading of advertisement, handling of enquiries from potential buyers and eventually handling all documentations when a sale is made.

Dealers usually take a cut from the sale of the vehicle, ranging from a flat fee of $500 - 1% of the final selling price, depending on the consignment agreement. Also depending on the arrangement made, the consignment dealer may or may not assist in touching up of your vehicles paintwork and grooming before handing the car over to the new owner.

Touch ups to the vehicle are usually by the buyer's request and will most probably knock a few dollars off your asking price. Apart from the financial, insurance and paperwork support, it is such repair and grooming work a dealer is able to assist with that makes the sale of your vehicle much easier. After all, nobody wants to purchase a car that would require the hassle of wear and tear rectifications.

Most sellers forget that on top of their consigned vehicle, dealers have a fleet of cars that need to be sold too. So if you do decide to consign your vehicle for sale, don't be too hard on your dealer, they too are trying to get the best price at the shortest possible time for you.

 

There are hundreds of consignment cars for sale: http://www.sgcarmart.com/used_cars/listing.php?CAT=5

 

There are also many consignment car dealers to choose from, and it's always good to learn more before you decide which dealer you like to consign your car with:

Once you have decided to sell your car via consignment, you can get started here:

http://www.sgcarmart.com/tools_tips/consignment.php

 

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Hi Hamburger, Lemon Law is not applicable for consignment cars.

 

thanks for the heads up.

 

guess if the price is similar to that of dealer, might as well consider other options.

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Any idea how will this ruling affects the consignment car sales?

 

http://www.singaporelawblog.sg/blog/article/146

 

Hi Galantspeedz

 

Consignment car sale transaction are just like a dealer car sales, legally speaking. So if the car seller (whether direct owner via car consignment, or car dealer) do not transfer the car ownership over after the sale, the recourse taken by the car buyer will be the same.

 

However, as the article suggests, the car buyer should always exercise prudence in getting the car. Quoted from article

 

While the law has tilted the balance in favour of the innocent purchaser in the light of this decision, it nonetheless remains a rule of prudence that a purchaser should request for the production of the log card and satisfy himself as to the agent’s ownership and authority to sell before parting with the deposit or the purchase price. His conduct, in the event that the matter is litigated, will not be found wanting when placed under scrutiny.

Though it may not be practical to ask the dealer for the log card to prove that the car is the dealers'. What car buyers can do though, is to make sure proper transfer and paperwork is done before placing deposit or paying for the car. This should apply to any used car sale, whether consignment or not.

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Hi Galantspeedz

 

Consignment car sale transaction are just like a dealer car sales, legally speaking. So if the car seller (whether direct owner via car consignment, or car dealer) do not transfer the car ownership over after the sale, the recourse taken by the car buyer will be the same.

 

However, as the article suggests, the car buyer should always exercise prudence in getting the car. Quoted from article

Though it may not be practical to ask the dealer for the log card to prove that the car is the dealers'. What car buyers can do though, is to make sure proper transfer and paperwork is done before placing deposit or paying for the car. This should apply to any used car sale, whether consignment or not.

 

correct me if i am wrong, consignment car sales are private sellers asking dealers to sell on their behalf... the log card still remains under the seller's name and not the dealers.

 

if the seller transfer to dealer before any sales, wouldn't that put the seller at risk since he is not receiving any monies because the sale has not gone through?

 

 

Edited by Galantspeedz

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correct me if i am wrong, consignment car sales are private sellers asking dealers to sell on their behalf... the log card still remains under the seller's name and not the dealers.

 

if the seller transfer to dealer before any sales, wouldn't that put the seller at risk since he is not receiving any monies because the sale has not gone through?

 

Yes the log card still remains with the seller and not transferred to the dealer. So when the transaction takes place, the transfer of ownership will be from the seller to the buyer. In the financial process though, in most cases the dealer will handle from end to end, since some of the consignment car sales could be net loss or when there is outstanding loan to be settled with the bank. In some cases the seller will not even meet the buyer, so the dealer will do all the paperwork.

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Yes the log card still remains with the seller and not transferred to the dealer. So when the transaction takes place, the transfer of ownership will be from the seller to the buyer. In the financial process though, in most cases the dealer will handle from end to end, since some of the consignment car sales could be net loss or when there is outstanding loan to be settled with the bank. In some cases the seller will not even meet the buyer, so the dealer will do all the paperwork.

 

ok thanks... though i just wonder how the ruling will affect the consignment car industry....

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Who are some of those sellers who use consignment service instead of selling as direct owners or to dealers?

 

Do you know that 20% of consignment listings on SgCarmart.com are sports cars including Maserati, Ferrari, and Porsche. These owners prefer to sell direct but do not have time or do not wish to handle the calls from prospective customers.  Hence Consignment offers them the best of 2 worlds.

 

If you too wish to sell your car through consignment, you can start here: 

http://www.sgcarmart.com/tools_tips/consignment.php

 

 

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There are plenty of consignment cars for everyone.

 

Take your pick from cars for less than $10,000 like this http://www.sgcarmart.com/used_cars/info.php?ID=522740&DL=1286 or a "slightly pricier" model like this http://www.sgcarmart.com/used_cars/info.php?ID=508912&DL=2685

 

Browse more than 300 consignment cars here:

http://www.sgcarmart.com/used_cars/listing.php?CAT=5

 

 

 

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Consignment dealers earn commission once the sale is finalized. Question is, who pay this commission, seller or buyer?

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Consignment dealers earn commission once the sale is finalized. Question is, who pay this commission, seller or buyer?

Goes without thinking. Seller.
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I just bought a car from CarQXXXXX, I have to pay this fee (first time to buy a consignment car).

So I'm being conned?

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I just bought a car from CarQXXXXX, I have to pay this fee (first time to buy a consignment car).

So I'm being conned?

 

Hi MD70,

 

did the dealer make known upfront about this fee?

 

While it is more common practice to charge seller commission for selling the car, some dealers will also impose a fee on the buyer, be it in terms of admin fee or commission, especially if buyer never take loan.

 

At the end of the day, it is always prudent to screen through the documents to be sure that what has been agreed is reflected in the contract, be it buyer or seller.

 

Hope this clarifies.

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Can we negotiate directly with the owner for consignment unit? 


Does the dealer negotiate on behalf of the buyer or the seller? 


How much does the dealer usually mark up from the selling price?

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Borneo Motor trade in withdrawal penalty is at 20% of the quoted price!!

 

If BM quote 50KSGD on your trade-in car, and if you sign on the dotted line, and later want to withdraw, you have to pay 20% x 50KSGD = 10KSGD.

 

Is this the common practice of other Authorised Dealers?

 

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Hello, I've recently bought a used car that was sold via consignment and have taken possession of the physical car and made full payment to the dealer already with the dealer assuring that ownership will be transferred once the seller has settled payment with the bank using cash from the payment I made. Any bros here know roughly how long would such a process take in a consignment sale?

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Hi, i bought a car on consignment paid a deposit to the dealer. I applied for a loan via the dealer, however before handover of the car i decided to borrow less and lower my tenure from 7-6 years. The car dealer is insisting in top up his loss of commission because i am borrowing slightly less with lesser tenure to save some interest. Is that a reasonable ask? This was not highlighted to us at the time of purchase.

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Hi, I already put a deposit after the consignment dealer negotiated the price at 66.5k from seller's contracted min price of 67k (contract with dealer I saw the contract)

After 25 hours, received from dealer that the seller do not want to sell. Is this rightful? $500 for dealer admin charge n must take loan.

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Hi,

 

Can car viewing be continue when there is already a deposit placed by a potential buyer? Grey area.

 

Interested to buy a consignment Sirocco from Ding Feng Pte Ltd, decided to go down for viewing after several calls from them. Only after that they informed me that there is actually a potential buyer with deposit placed. Wasted my time!

 

This is upsetting because they make me go all the way down, only informed me after that. They should have make sure the car is available.

 

Why would they still want me to view when there is already a buyer who placed his deposit?

Possible reason - the first buyer might drop the deal so they keep their option open (maybe they are not wrong to do this). But for keen buyer like myself, they are wasting my time!

And why would one pay deposit and then gave up? I guess the reason is obvious. Something wrong with the car.

To share more about the probable problems with the car is because XXXXX (the salesperson or i suspect is the owner of the car) strongly refused to let me send the car for checks. Even when i suggested a fair neutral party like VW. I thought this is common practice for second hand car? 

 

No business ethics. Beware.

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Hi,

 

Can car viewing be continue when there is already a deposit placed by a potential buyer? Grey area.

 

Interested to buy a consignment Sirocco from Ding Feng Pte Ltd, decided to go down for viewing after several calls from them. Only after that they informed me that there is actually a potential buyer with deposit placed. Wasted my time!

 

This is upsetting because they make me go all the way down, only informed me after that. They should have make sure the car is available.

 

Why would they still want me to view when there is already a buyer who placed his deposit?

Possible reason - the first buyer might drop the deal so they keep their option open (maybe they are not wrong to do this). But for keen buyer like myself, they are wasting my time!

And why would one pay deposit and then gave up? I guess the reason is obvious. Something wrong with the car.

To share more about the probable problems with the car is because XXXXX (the salesperson or i suspect is the owner of the car) strongly refused to let me send the car for checks. Even when i suggested a fair neutral party like VW. I thought this is common practice for second hand car? 

 

No business ethics. Beware.

 

You mean after several calls from the dealer they did not inform that the car is actually reserved? Most of the time they probably want you to go down still to check out their other available cars..not very ethical I will say..

 

For consignment cars it depends on whether the owner is comfortable to send for checks. Normally people will choose neutral evaluation centres like STA and VICOM. And usually is the buyer who will pay for it since he requested for it.

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My recent 2 experiences with consignment car sales let me realized a couple of things:

 

First, the consignment dealer (CD) priority is handling the loan from buyer which they will make commission up to a few thousands. Therefore, if they have potential buyers with ready cash (no loan) and willing to buy at reasonable acceptable price, chances are you will not even hear from CD.

 

Second, your final selling price may not be the real buying price (unless you believe a nicely filled up commercial agreement with some signatures, if you insist on seeing one). It is not difficult to guess the buying price is higher than what you are getting. CD profit the difference. You don't deal with buyer, seller and buyer deal separately with CD. 

 

There is no real cost for CD, except the commercial fee paid to publish your car (about $100 plus what they said will refund you may be another $100 when car is sold). There is no storage charges, no risk of depreciation, no out front cash to purchase cars, but massive time filtering of calls for potential buyer with loan, arrange viewings, negotiating on prices.

 

If you are willing to sell your car at direct seller price (lower than market price), publish your car on your own, when you have confirmed buyer, there are ample people willing to help on loan application, purchase of insurance, CD will be willing of course. Transfer of ownership with Singpass of both buyer and seller, could be done within 10 mins using mobile phone.

 

But if you are a buyer with cash, wiling to offer a price with normal discount, you will feel the resistance and unloved.

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