AUTO CONSIGNORS

A consignment is an arrangement under which a dealer agrees to accept possession for the purpose of sale and the owner will then pay the dealer from the proceeds of the sale.

Auto consignors must be licensed dealers.

Auto consignors must write an agreement prior to sale.

Auto consignors must complete an accounting and make payment within 20 days of the date of sale.

Failure to complete and/or comply with the terms of the agreement or failure to pay the consignor within 20 days of the sale is cause for suspension and/or revocation of the dealer’s license.

The consignment agreement shall include:

vehicle description

date of agreement

current market value

*low book value

liens outstanding

repairs to be made

*repairs to be left as-is and disclosed compensation to consignor

The sales accounting, within 20 days, shall include:

  • date of sale
  • repairs authorized with records
  • liens payable to lien holders
  • evidence of payment of liens
  • total sales price