Car Consignment: A Brief Guide to Selling Your Car
June 18, 2019
Almost everyone knows how a consignment works. You send whatever you’re selling to the consignment store—whether they’re clothes, books or antique furniture—and wait for your goods to be sold.
Once the sale is confirmed, you receive the payment for your goods, less the fees you’re paying the shop for doing the work.
These days, selling your car on consignment has become widely accepted in Singapore and it’s a trend based on the similar model. The paperwork involved in private car sales has made car consignment appealing. But, of course, contracting someone to sell your used car is quite different from having someone sell your clothes.
Car Consignment in Singapore
Selling a high-priced item like a vehicle requires significant work, product knowledge, skills to negotiate, and many other factors that complicate the sale process. But, consigning your car to a professional dealer saves you from this complex procedure as you hire someone to handle the advertising, inquiries, and documentation once the vehicle is sold.
While some owners believe they can get a higher price when they sell their car themselves, it can actually be quite the contrary. The process is lengthy and troublesome, considering the wasted time and effort meeting and negotiating with potential buyers.
In a car consignment, you get to set your own price and the dealer will handle all the marketing and paperwork on your behalf, while you retain legal ownership of your vehicle. You can somehow view it as an option between selling a car on your own and through a dealer.
If these aren’t any indication, selling your car via consignment can be a hassle-free process where you’re still allowed to use your car while it’s listed in the market.
The Process of Consigning Your Car
The first step in a car consignment is determining the market value of your car. A professional dealer will assess your car based on its history, mileage, overall condition, and marketability. Afterwards, they will present you with the valuation of your car, which is the price they think your car can be sold in the private market.
Consignment offers wider visibility and broader access to buyers. In most cases, your car dealer will list your car on listing sites to sell it quickly and at a higher price. Some even go further by preparing your vehicle for selling, which often involves car cleaning and detailing.
Pricing is a step where consignment companies may differ most. While others may offer pricing advice but leave the decision in your hands, others may require you to follow a strict price they have set. Either way, a good auto consignment store should be able to appraise your car to the highest value possible.
TIP: Some stores charge at least 10% of the selling price while others charge only a flat fee. So, when consigning your car, you’ll have to consider how much of the selling price you get to keep.
As mentioned, the dealer will take over the actual sale transaction—selling, negotiating, and managing the paperwork. They will also handle all the test drives, inquiries and any other procedure that would otherwise take up a great deal of your time.
Consigning your car also proves a safe and convenient option on the buyer’s end as it allows them to transact with the authority rather than a stranger. It also means you afford them with additional products and services that wouldn’t have been available in a private car sale. A few of these include:
The consignment model is plain and simple: someone else will sell your car for you. It maximises the sale price of your vehicle while eliminating the risk and complexity involved in selling it on your own.
If you think car consignment is your way to go, SG Car Trade has a wide range of solutions exclusively for you. We understand the selling your vehicle is not easy, so we want to take it from here. As soon as you decide to opt for our method of car consignment and give the responsibility to us, we get the selling done like it’s ours.
Get in touch with one of our professional car dealers today!