Article Structure
The Car Consignment form serves as a crucial document for individuals looking to sell their vehicles through a consignment dealer. This agreement outlines the relationship between the Consignor, the vehicle owner, and the Consignee, the dealer responsible for selling the vehicle. Key elements include the vehicle's details, such as make, model, VIN, and condition, as well as the agreed-upon minimum selling price. The Consignor retains ownership of the vehicle during the consignment period, ensuring that the title remains in their name until the sale is completed. The form also specifies commission rates, advertising costs, and any potential fees associated with repairs or inspections. Notably, the Consignor must provide accurate information about the vehicle's history, including any accidents or liens. This structured approach not only protects both parties but also clarifies expectations, ensuring a smooth transaction process. In addition, the form includes provisions for liability, indemnification, and the return of the vehicle if it does not sell within the specified timeframe. Overall, the Car Consignment form is designed to facilitate a transparent and efficient sale, making it an essential tool for anyone considering consignment as a selling option.
Form Sample
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______________________
______________________
USED VEHICLE CONSIGNMENT AGREEMENT
Exclusive listing with the exclusive right to sell
I (We) _____________________________________ the Consignor(s) agree(s) to consign and deliver possession to ________________
___________________________________________at address of _______________________, with telephone number _____________,
Dealer No. __________________, the Consignee, the vehicle described as follows, for the sole purpose of selling the vehicle with a
minimum selling price of $______________. Consignor(s) shall have final approval of any proposed sale of the vehicle.
This agreement is to begin on ______________________ and will terminate on ________________. The terms of this agreement are that
the Consignor shall return the vehicle to the consignor(s), or enter into a new agreement at the termination of this consignment agreement.
Year
Make
Model
VIN#
License Plate #
Odometer
Style
Exterior Color
Actual Miles, TMU, Exempt?
Air Conditioning
Engine: ____________________________
AM/FM Cassette
Power Locks
Transmission: _______________________
AM/FM CD Player
Keyless Entry No. Remotes: __________
AWD
AM/FM CD Changer
Power Windows
FWD
Manuals
Power Seats
RWD
Maintenance Records
Power Sunroof
4WD
Floor Mats
Leather – Color: ____________________
Navigation
Cloth – Color: _____________________
DVD system
Consignor(s) warrant(s) that he/she (they) has/have possession of the title or that the title is held by the below listed lien holder and
that there are no interests, liens, or claims against the vehicle which are not below:
Name of Lien holder:
Address:
Phone No.:
Account No.:
The Consignor(s) agree(s) that, pending sale, the vehicle’s title shall remain in Consignor(s) name and that theft, fire,
comprehensive and liability insurance be and/or must remain in effect during the consignment period.
Agent Name:
Phone No.:
Insurance Co.:
Address:
Policy No.:
Liability Limits:
Effective:
Expiration:
The Consignor(s) represents and warrants that to the best of the Consignor(s) knowledge, information and belief, that the vehicle
has not been involved in an accident. If the vehicle has been in an accident, the Consignor(s) has provided Consignee with the
relevant information.
Yes
No
Has this vehicle ever been in an accident?
Yes
No
Has this vehicle ever been in a flood?
Yes
No
Has this vehicle ever had hail damage?
Yes
No
Has this vehicle ever had a branded title?
Yes
No
Is the vehicle currently unable to pass safety or emissions inspections?
If “Yes” checked above, please provide details:
Indicate whether the vehicle is:
Yes
No
AS-IS - NO WARRANTY
Yes
No
WARRANTY
Condition of Vehicle:
Excellent
Average
Poor
The vehicle requires the following work:
The delivery of this vehicle is on consignment and is not a sale of the vehicle to the Consignee. The Consignee agrees to receive the vehicle
in trust and not to permit its use for any other purposes than what is contained in this agreement without express written consent of the
Consignor(s).
Consignor(s) hereby agree(s) to the following commission rates as set forth by the Consignee:
Sale Price of Vehicle Commission/Costs
Sale Price of Vehicle
Commission/Costs
$0-$_______ $_______
$_______-$_______
$_______
$_______ - $_______ $_______
$_______ and up
___%
Carfax & NADA reports are included in commission cost. Advertising on Autotrader, KBB, CarGurus, TrueCar, Vast, Edmunds &
CarFax Online are included in commission cost. Cars.Com, Craigslist, Ebay and any other specialty ad site are extra on cars under
$_______. Complete detailing, safety inspection, repair work, financing and offered warranty plans are available at an extra cost and are
not included in the commission fee.
Additional Fees If Applicable:
Safety Inspection/Emission $___ + Sales Tax (cars/lt trucks) Finance Facilitation Fee:
$_______
Labor Rate $_____/hour, plus parts
Professional Detail
$_______ & Up
Warranty Plans: $_____ & up
Upon completion of sale and receipt of a good, negotiable title, the net amount due to the Consignor(s) from the Consignee shall be the
gross sale amount less any costs for repairs or detailing previously agreed to by Consignor(s), and commission rate as set forth in this
agreement, and further agrees that the Consignee will pay off any existing encumbrances against said vehicle and deduct the same from the
net amount due.
If repairs are required before or during the period of consignment, Consignee shall notify the Consignor(s) and shall secure Consignor(s)
approval before any work shall commence. All repair costs will be deducted from the Consignor(s) net. If the vehicle is not sold during the
specified agreement term, Consignor(s) agree(s) to pay repairs before vehicle is returned to Consignor(s).
In the event the vehicle is sold by someone other than the Consignee during the period of agreement, the Consignor(s) agree(s) to pay the
Consignee _____ percent ( ___%) of the price received. In the event a sale is made to a buyer who discussed the vehicle with the
Consignee, then the Consignor(s) agree(s) to pay the Consignee _____ percent ( ___%) of the vehicle’s selling price.
Should the Consignor(s) wish to remove the vehicle from Consignee’s premises, Consignee shall require a minimum of _________ ( __ )
hours’ notice. The vehicle can then be removed between the hours of ______ and ______ pm on weekdays or subject to appointment. All
advertising, detail, repair, inspection, and any other costs incurred while the vehicle was on the Consignor’s premises will be due at the
time of removal.
If the vehicle remains unsold and a new agreement is not considered, or if the vehicle has been sold but not removed from Consignee’s
premises or if the Consignor(s) or buyer(s) are delinquent in paying fees, Consignee may have the vehicle impounded at the Consignor(s)
or buyer(s) expense without prior notice to the Consignor(s) or buyer(s). Additionally, Consignee may, at any time, demand that the vehicle
be removed from Consignee’s premises upon _________ ( __ ) hour notice to Consignor(s).
Consignor(s) hereby promise(s) to defend, indemnify and hold harmless Consignee, its employees agents and assigns from any and all
demands, judgments, claims, including reasonable legal and all other expenses actually incurred and paid, incident to any claim whether
baseless or well founded by any third party in connection with any automobile taken by Consignee on consignment, including without
limitation any claim for taxes by any State of the United States, territory or political subdivision thereof. The indemnification language
contained herein shall survive the termination of this agreement,
It is further agreed that the Consignee, its agents or assigns are not responsible for any damage to the vehicle due to fire, accident, theft,
vandalism or any cause whatsoever.
Consignor:
Email:
Address:
Home Phone
Work Phone:
Signature:
Date:
Consignee on behalf of ________________________:
NOTICE TO CONSIGNOR: Failure of the Consignee to comply with the terms of this agreement may be a violation of stature
which could result in criminal or administrative sanctions, or both. If you feel the Consignee has not complied with the terms of
this agreement, please contact the Department of Motor Vehicles, Division of Investigations and Occupational Licensing Bureau of
Investigations, via the local Department of Motor Vehicles office. The Consignee is the person(s) or dealer who is selling the
vehicle(s) on behalf of the Consignor. The Consignor is the person(s) who has given the vehicle to the Consignee to be sold.
Document Specifications
| Fact Name | Description |
|---|---|
| Parties Involved | This agreement involves two main parties: the Consignor, who owns the vehicle and wants to sell it, and the Consignee, who is the dealer or individual authorized to sell the vehicle on behalf of the Consignor. |
| Minimum Selling Price | The Consignor sets a minimum selling price for the vehicle. This ensures that the vehicle will not be sold for less than the amount the Consignor is willing to accept. |
| Insurance Requirement | During the consignment period, the vehicle must be insured. The Consignor is responsible for maintaining insurance coverage, which includes theft, fire, comprehensive, and liability insurance. |
| Governing Laws | The consignment agreement is subject to state-specific laws. For example, in California, it is governed by the California Vehicle Code, while in Texas, it follows the Texas Occupations Code. |
Steps to Filling Out Car Consignment
Completing the Car Consignment form is essential for ensuring a smooth process when selling your vehicle through a dealer. The following steps will guide you through filling out the form accurately and efficiently. Pay close attention to each section, as providing correct information is crucial for a successful consignment agreement.
- Provide Your Information: In the first section, fill in your name(s) as the Consignor(s). This is the individual or individuals consigning the vehicle.
- Enter the Consignee's Details: Next, write the name of the dealer or individual who will be selling your vehicle, along with their address and phone number.
- Describe the Vehicle: Fill in the details of the vehicle, including the year, make, model, VIN, license plate number, odometer reading, style, and exterior color. Indicate the actual miles and whether they are TMU (True Mileage Unknown) or exempt.
- List Features: Check the boxes for features such as air conditioning, power locks, keyless entry, etc. Include the number of remotes available.
- Specify Engine and Transmission: Provide information about the engine type and transmission, selecting from the options given.
- Indicate Vehicle Condition: Mark whether the vehicle is AS-IS, and select the condition of the vehicle (excellent, average, poor). Note any required work.
- Insurance Details: Fill in the agent's name, phone number, insurance company, address, policy number, liability limits, effective date, and expiration date.
- Accident History: Answer the questions regarding the vehicle's accident history and any other relevant issues, providing details if necessary.
- Commission Agreement: Review and fill in the commission rates for the sale price of the vehicle, including any additional fees for services.
- Sign the Agreement: Finally, sign and date the form as the Consignor. Ensure all information is accurate before submission.
Once the form is completed and signed, it will be submitted to the Consignee. This initiates the consignment process, allowing the dealer to begin marketing your vehicle. Make sure to keep a copy of the signed agreement for your records.
More About Car Consignment
What is a Car Consignment form?
A Car Consignment form is a legal document that outlines the agreement between a vehicle owner (the Consignor) and a dealer or agent (the Consignee) for the sale of a vehicle. This form specifies the terms of the consignment, including the vehicle's details, minimum selling price, and the duration of the agreement. It ensures that both parties understand their rights and responsibilities throughout the consignment process.
How does the consignment process work?
Once the Consignor fills out the Car Consignment form and delivers the vehicle to the Consignee, the Consignee will take responsibility for selling the vehicle. The Consignee will market the vehicle, handle inquiries, and negotiate sales. The Consignor retains ownership of the vehicle until it is sold. If the vehicle does not sell within the agreed timeframe, the Consignor can either retrieve it or enter into a new agreement.
What fees are associated with the consignment?
Fees can vary based on the terms outlined in the Car Consignment form. Generally, the Consignee will charge a commission based on the sale price of the vehicle. Additional costs may include advertising fees, safety inspections, and detailing services. It’s important for the Consignor to review these fees carefully before signing the agreement to avoid any surprises later.
Can the Consignor set the selling price?
Yes, the Consignor can set a minimum selling price for the vehicle on the Car Consignment form. The Consignee must obtain the Consignor's approval before accepting any offers below this price. This ensures that the Consignor has control over the minimum amount they are willing to accept for their vehicle.
What happens if the vehicle does not sell?
If the vehicle does not sell by the end of the consignment period, the Consignor has a couple of options. They can choose to take the vehicle back or negotiate a new consignment agreement. Any fees incurred during the consignment period, such as repairs or detailing, will need to be settled before the vehicle is returned to the Consignor.
What should be done if the vehicle has been in an accident?
If the vehicle has been involved in an accident, it is crucial for the Consignor to disclose this information on the Car Consignment form. Transparency about the vehicle’s history helps the Consignee market the vehicle accurately and protects both parties from potential legal issues. Failure to disclose such information can lead to complications down the road.
What if the vehicle is sold by someone other than the Consignee?
If the vehicle is sold by a third party during the consignment period, the Consignor is still obligated to pay the Consignee a percentage of the sale price. This percentage is specified in the Car Consignment form. This clause ensures that the Consignee is compensated for their efforts in marketing the vehicle, even if the sale occurs outside of their direct involvement.
Common mistakes
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Failing to provide complete contact information for both the Consignor and Consignee. Missing details can lead to communication issues.
-
Not specifying the minimum selling price of the vehicle. This omission can create confusion about expectations during the sale.
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Neglecting to indicate whether the vehicle has any existing liens. This information is crucial for potential buyers and can affect the sale.
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Overlooking the need to check all applicable features and conditions of the vehicle. Incomplete information can mislead buyers.
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Not providing details about the vehicle's accident history. Transparency is key in maintaining trust with potential buyers.
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Failing to sign and date the form. An unsigned form may not be considered valid, leading to legal complications.
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Leaving out the insurance information. This can lead to misunderstandings about coverage during the consignment period.
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Not specifying the condition of the vehicle accurately. Misrepresentation can result in disputes post-sale.
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Ignoring the section regarding additional fees. This can lead to unexpected costs for the Consignor.
-
Failing to provide a notice period for vehicle removal. This can create logistical challenges for both parties.
Documents used along the form
The Car Consignment form is a crucial document for anyone looking to sell a vehicle through a consignment dealer. However, several other forms and documents often accompany it to ensure a smooth transaction. Here is a list of these important documents, each serving a unique purpose.
- Title Transfer Document: This document facilitates the transfer of ownership from the consignor to the buyer once the vehicle is sold. It must be completed and signed by both parties to ensure legal ownership changes hands.
- Bill of Sale: A bill of sale provides proof of the transaction. It details the sale price, vehicle information, and the names of both the buyer and seller. This document is essential for both parties to have a record of the sale.
- Vehicle History Report: Often requested by potential buyers, this report provides information on the vehicle's past, including any accidents, title issues, or service history. It helps build trust and transparency in the sale process.
- Insurance Documentation: Proof of insurance is necessary to protect both the consignor and the consignee during the consignment period. This documentation ensures that the vehicle is covered against potential damages or losses.
- Inspection Report: An inspection report details the vehicle's condition and any repairs that may be needed. This report can help set realistic expectations for potential buyers and may also affect the vehicle's selling price.
- Commission Agreement: This document outlines the terms of the commission structure between the consignor and the consignee. It specifies the percentage of the sale price that the dealer will retain as commission for their services.
- Disclosure Statement: A disclosure statement informs potential buyers of any known issues with the vehicle, such as past accidents or mechanical problems. This document is important for legal protection and maintaining trust between the parties involved.
These documents collectively contribute to a transparent and efficient consignment process. Ensuring that all necessary forms are completed and submitted can help avoid misunderstandings and protect the interests of both the consignor and the consignee.
Similar forms
The Vehicle Purchase Agreement is a document that outlines the terms and conditions of a sale between a buyer and a seller. Like the Car Consignment form, it includes details about the vehicle, such as make, model, and VIN. Both documents require the seller to affirm ownership and disclose any liens on the vehicle. The Vehicle Purchase Agreement also specifies the sale price and payment terms, ensuring clarity for both parties involved in the transaction.
The Bill of Sale serves as a legal document that records the transfer of ownership from the seller to the buyer. Similar to the Car Consignment form, it includes essential vehicle details and the names of both parties. It confirms that the seller has the right to sell the vehicle and may also include a statement about the vehicle's condition. Both documents protect the interests of the parties involved by providing a written record of the transaction.
The Lease Agreement for a vehicle outlines the terms under which a lessee can use a vehicle owned by a lessor. Like the Car Consignment form, it specifies the duration of the agreement and the responsibilities of both parties. The Lease Agreement may also require the lessee to maintain insurance on the vehicle, similar to the insurance requirements in the consignment form. Both documents aim to protect the rights and obligations of the parties involved.
The Title Transfer Document is used to officially transfer ownership of a vehicle from one party to another. This document is similar to the Car Consignment form in that it requires the seller to confirm their ownership and disclose any liens. Both documents serve as important records for the Department of Motor Vehicles, ensuring that ownership is clear and legally recognized.
The Vehicle Inspection Report details the condition of a vehicle before it is sold or consigned. This report is similar to the Car Consignment form as it often includes information about the vehicle's mechanical and cosmetic condition. Both documents emphasize the importance of transparency regarding the vehicle's state, helping to protect both the seller and the buyer from future disputes.
The Power of Attorney for Vehicle Transactions allows one party to act on behalf of another in matters related to vehicle ownership and sales. Like the Car Consignment form, it includes specific details about the vehicle and the parties involved. This document grants authority to the designated person to sign documents and make decisions related to the vehicle, ensuring that all transactions are handled efficiently and legally.
Dos and Don'ts
When filling out the Car Consignment form, attention to detail is crucial. Here are some essential do's and don'ts to guide you through the process:
- Do provide accurate and complete information about the vehicle, including the year, make, model, and VIN.
- Do clearly state any existing liens or claims against the vehicle to avoid future complications.
- Do specify the minimum selling price to ensure you have control over the sale.
- Do read the entire agreement carefully before signing to understand your rights and obligations.
- Do keep a copy of the signed agreement for your records.
- Don't leave any sections blank; incomplete forms can lead to misunderstandings.
- Don't underestimate the importance of disclosing any accidents or damages the vehicle has sustained.
- Don't forget to confirm that your insurance remains active during the consignment period.
- Don't ignore the commission structure; ensure you understand how it affects your net proceeds.
- Don't rush through the process; take your time to ensure everything is accurate and complete.
Misconceptions
- Misconception 1: The consignment agreement means I am selling my car to the dealer.
- Misconception 2: I have no control over the sale price of my vehicle.
- Misconception 3: I am responsible for all costs associated with the consignment.
- Misconception 4: The Consignee will take care of all repairs and detailing without my approval.
- Misconception 5: If my vehicle doesn’t sell, I can just leave it with the dealer indefinitely.
- Misconception 6: I don’t need to worry about insurance during the consignment period.
- Misconception 7: The Consignee is responsible for any damage that occurs to my vehicle.
- Misconception 8: I can remove my vehicle from the dealer's lot at any time without notice.
- Misconception 9: I don’t need to disclose any accidents my vehicle has been in.
This is not true. The consignment agreement is a contract that allows the dealer (Consignee) to sell your vehicle on your behalf. You retain ownership until the vehicle is sold.
In fact, you have the final approval over any proposed sale price. You can set a minimum selling price, ensuring you are comfortable with the amount you receive.
While you are responsible for certain costs, such as repairs or detailing, the agreement specifies which costs are covered by the Consignee. Make sure to review these details.
This is incorrect. The Consignee must notify you and obtain your approval before any repairs are made during the consignment period.
The agreement has a termination date. If your vehicle remains unsold after this period, you must retrieve it or consider entering a new agreement.
On the contrary, you must maintain theft, fire, comprehensive, and liability insurance on the vehicle throughout the consignment period.
This is misleading. The agreement states that the Consignee is not liable for any damage due to fire, theft, or other causes while the vehicle is in their possession.
Actually, you must provide a minimum notice period to the Consignee before removing your vehicle. This is to ensure proper arrangements can be made.
It is essential to disclose any accidents. The agreement requires you to provide relevant information about the vehicle’s history, including any accidents it may have been involved in.
Key takeaways
When filling out the Car Consignment form, it is essential to understand the key elements that will guide you through the process. Here are some important takeaways:
- Identify Parties Clearly: Ensure that the names and contact information of both the Consignor and Consignee are accurately filled out. This helps prevent any confusion later.
- Vehicle Information: Provide detailed information about the vehicle, including the year, make, model, VIN, and any unique features. This information is crucial for marketing the vehicle effectively.
- Commission Structure: Review the commission rates set by the Consignee. Understanding these rates will help you anticipate the net amount you will receive upon the sale of your vehicle.
- Insurance Requirements: Maintain insurance coverage on the vehicle throughout the consignment period. This protects your interests in case of unforeseen events.
- Condition Disclosure: Be honest about the vehicle's condition, including any accidents or damage. This transparency builds trust and can facilitate a smoother sale process.
- Approval of Sale: Remember that you have the final say on any proposed sale. This gives you control over the transaction and ensures you are comfortable with the sale terms.
- Removal Notice: If you decide to remove the vehicle from the Consignee's premises, provide the required notice. This ensures a smooth transition and helps avoid any potential misunderstandings.
By keeping these points in mind, you can navigate the consignment process with confidence and clarity.