Most people know how a regular consignment works. You drop off whatever you want to sell at the consignment store, whether it’s clothes, a book, or an old teapot, and let the consignment shop do the work. Once your item has been sold, you receive a check equal to the sale price of your item, less the fees you pay the store.
Recently, a growing trend towards auto consignment has emerged based on the same simple model. The hassles of private car sales make car consignment well worth considering, but as you might guess, having someone sell your used car is a lot different from having someone sell your books. To professionally market a high priced item like a car requires significant prep work, product knowledge, skills to facilitate negotiations, the ability to meet buyers’ needs for financing and service contracts, and a variety of other factors that complicate the sale process.
So, with all that said, how exactly does vehicle consignment work?
For over 90 years, Kelley Blue Book™ has been The Trusted Resource for used car values, helping car owners understand what their used car is worth. Depending on the method of disposal, there actually may be more than one Blue Book Value for the consumer's car, truck or SUV. The Kelley Blue Book trade-in range shows what a consumer can expect to receive for their car this week when trading it in at a dealer. The Kelley Blue Book Private Party Value reports on a fair price when selling the car to an individual instead of trading it in. Our Values are the results of massive amounts of data, including actual sales transactions and auction prices, which are then analyzed and adjusted to account for seasonality and market trends. Kelley Blue Book Values reflect local conditions in over 100 different geographic regions and are updated weekly to give consumers the most up-to-date used car pricing information.
Bring your car to any dealer, traditional or consignment, and the first thing they will do is conduct an appraisal. Their professionals will look over the car, ask you questions about its history, check out the mileage, assess condition and marketability, and present you with their valuation. We do all of that for you and guarantee our appraisals are so advantageous you'll get paid a minimum of a thousand dollars on every car you consign through auto-futures.com™.
In the case of a traditional dealer, this valuation will be the price they will pay for your car on the spot.
In the case of a vehicle consignment store, the valuation is the price they believe they can sell your vehicle for in the private market. The consignment price is typically thousands more than the dealer’s offer because it represents what many refer to as the “Private Party” price for your vehicle – in other words, what another private buyer will pay for your car whereas the dealer’s price represents the “Wholesale” price for your car.
In this competitive automotive space, TRAFFIC JAM EVENTS™ makes selling cars exciting again – one staffed event at a time. TRAFFIC JAM EVENTS™ has become one of the top automotive-marketing firms in the nation by focusing on three core elements: Research, Relationships and Results.
Our Research & Development department completely breaks down your local market to help customize your direct mail and staffed events. Is your market a highly-populated urban region, or more rural? Are you targeting high-income families or lower-income individuals? These questions and many more are utilized to determine the most effective marketing for your dealership.
Long-term partnerships and client satisfaction are top priorities at Traffic Jam Events – whether that involves customizing your direct-mail piece to your liking, arranging your Co-Op submissions to ensure you receive full reimbursement, or providing sales training for your staff during your next staffed event. One thing is certain: we are here to help you succeed now, and into the future.
Traffic Jam stands apart from all the Backyard Barney “companies” because we target your long-term profitability. Rather than burning out your entire market for one short week of sales, we aim for repetitive, consistently high results. At Traffic Jam Events, providing your dealership with long-term prosperity is far more important than making a quick buck.
Working with TRAFFIC JAM EVENTS™, a top automotive-marketing firm in the nation, we are able to maximize profits on every vehicle we consign for sale. TRAFFIC JAM EVENTS™ performs successful sales events and direct marketing campaigns in virtually every type of dealership in every type of market.
Pricing is an area where consignment stores may vary most. Some stores will offer pricing guidance and advice but leave the ultimate pricing decision in your hands. Others will require that you follow a strict pricing schedule set by their staff. Either way, auto consignment professionals know the market and should aim to obtain the highest value possible for your vehicle.
While your advertised price is important, you’ll need to consider how much of the final sale price you get to keep. Some stores take a percentage of the price, usually between 10% and 20%. Others charge only a flat fee, and some do a mixture of both.
A percentage fee can be advantageous for low-priced cars but can mean big dollars to the store for high-priced cars. A flat-fee model ensures that all the vehicles on the lot are treated equally. Sellers and buyers typically prefer a flat-fee model, but consider your options before deciding which makes the most sense for your situation.