Does Selling Cars on Consignment Make Sense?

ferrari_250_gt

Ferrari 250 GT Berlinetta: candidate for consignment

Bear with me on this analogy for a moment, gear heads. If you have a wife or girlfriend, this won’t be too difficult to comprehend.

When your significant other wants to get rid of some of her high-end clothes, what does she do? She won’t just give them away. She won’t typically put them on Craigslist and can’t trade them in for new clothes. If your girl is anything like mine, she’ll most likely take the big-money items to a consignment shop.

So why, guys and gals, when it’s time to sell a car, do we just list them on a classified site or trade them in? Could car consignment work?

There are a growing number of such businesses across the U.S., but a word of caution is in order before you go down that path.

A Car and Driver article discusses the fairly new phenomenon of consignment car sales, a process where a seller hires someone to sell his or her vehicle. The benefits, of course, are not dealing with the hassle of selling the car yourself. That means no advertising, no making appointments to show the car and no worries about title transfer. It’s also a way to get a little more out of the car than a traditional dealer trade-in. The drawbacks are a lower profit margin than selling it yourself and a slight risk of becoming the victim of fraud.

I can see the consignor system being of value in the collector-car and luxury markets, but frankly don’t see much use for it in the average used-car sale. I’m all about pocketing as much cash as possible, and there are plenty of online tools available to help buyers effectively and efficiently sell their cars. CarGurus is one of the best, a fact confirmed by Consumer Reports and echoed by the thousands of people who use it every day.

Rather than pay a stranger to sell your car, trust the experts and marketing exposure at CarGurus to get the job done.

Would you consider selling your car on consignment, or just sell it yourself?

-tgriffith

Find Used Cars in Your Area at CarGurus

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