Does anyone here offer to sell consigned vehicles?

[XDCX]

I was curious if anyone here allows customers to sell cars on consignment, and if so what the fee structure was like?

I've been hanging out in Las Vegas and I noticed one of the biggest sellers of used houseboats for Lake Mead promotes the fact he operates as an agent which allows his buyers to legally evade sales tax charges.

In Nevada there's no sales tax for used vehicles sold between private parties, so in the above example the broker doesn't own the inventory he just brokers the deal. Very similar to a real estate transaction.

Does anyone offer consignments, or is it not worth the hassle?

[jayhawk]

wev'e done it for years. works best with decent mid priced cars. we ask people what the least ammount is they'll take for the car up front, if it approaches bb av. to clean, we'll let them list for $150 to cover detail l. o.f., & lot fees. we normally end up buying as there is normally a trade. dont get a lot but its free inventory. bikes too.

[XDCX]

Originally Posted by jayhawk

wev'e done it for years. works best with decent mid priced cars. we ask people what the least ammount is they'll take for the car up front, if it approaches bb av. to clean, we'll let them list for $150 to cover detail l. o.f., & lot fees. we normally end up buying as there is normally a trade. dont get a lot but its free inventory. bikes too.

Is there any sales tax advantage, or is that a non-issue in your state?

[steve_biegler]

Since we are just powersports now we do it on toys all the time, we used to do it on cars too. Customer would tell us what they wanted, if we agreed we would do our normal mark up. Upon the sale we would pay them what we agreed on and keep the difference or if there was a trade you knew what you had in the trade. Like Jayhawk said its free inventory. There is no tax advantage in our state. Great money to be made in the toy part of it, dealers should try to get that stuff in on consignment, it attracts guys like flies.

[79LilRedExpress]

Vehicle consignments are a violation of Ohio State Law.

We must have title in our name before we can sell the vehicle

[XDCX]

Originally Posted by steve_biegler

Like Jayhawk said its free inventory. There is no tax advantage in our state. Great money to be made in the toy part of it, dealers should try to get that stuff in on consignment, it attracts guys like flies.

I've heard about so many scams on Craigslist I have to think there must be a fair number of people who would rather consign a vehicle because it's easier and safer.

[XDCX]

Originally Posted by 79LilRedExpress

Vehicle consignments are a violation of Ohio State Law.

We must have title in our name before we can sell the vehicle

Wow, that's interesting - I never knew that.

Does that mean that all liens must be satisfied on the trade vehicle before it's re-sold? In New Mexico it was reported that Zangara Dodge had $900K in unpaid trade liens when they closed and many of the vehicles had been re-sold preventing the new owners couldn't obtain titles. (The problem has since been resolved and Zangara's settled with the A.G.)

It sounds like Ohio has laws in place which would have prevented that situation.

[79LilRedExpress]

Originally Posted by XDCX

Wow, that's interesting - I never knew that.

Does that mean that all liens must be satisfied on the trade vehicle before it's re-sold? In New Mexico it was reported that Zangara Dodge had $900K in unpaid trade liens when they closed and many of the vehicles had been re-sold preventing the new owners couldn't obtain titles. (The problem has since been resolved and Zangara's settled with the A.G.)

It sounds like Ohio has laws in place which would have prevented that situation.

It is a common pratice for dealers to sell trades before the bank releases the title and is transfered into their (the dealers) name, but it is still illegal to do so.

A lot of banks and secondary finance companies can take weeks to send titles to dealers which increases the chances of the 30 tag to expire and that tends to get customers real uneasy and un-trustful.

[ohiobuckeyes]

Originally Posted by 79LilRedExpress

It is a common pratice for dealers to sell trades before the bank releases the title and is transfered into their (the dealers) name, but it is still illegal to do so.

A lot of banks and secondary finance companies can take weeks to send titles to dealers which increases the chances of the 30 tag to expire and that tends to get customers real uneasy and un-trustful.

This is why we have a Title Defect Rescission Fund in Ohio LilRed....

The Title Defect Rescission Fund was created for maintaining and administering refunds to retail purchasers of motor vehicles who suffer damages due to failure of a motor vehicle dealer to provide a valid certificate of title in the name of the consumer within the statutorily required period of time. See Ohio Revised Code 1345.52. Each dealer in Ohio pays $150.00 into the fund when dealership opens. When the fund drops under $300,000 each dealer must pay addition $150.00 (the fund has only dropped under this level twice in this history this fund started in 1996). It is all done thought our AG's office. http://www.ohioattorneygeneral.gov/S...-Recision-Fund

[79LilRedExpress]

Ohio, I understand and appreciate that... however, they will still fine a dealer for non-compliance in reguard to selling a vehicle without a valid title.

[birch3x]

Originally Posted by 79LilRedExpress

Vehicle consignments are a violation of Ohio State Law.

We must have title in our name before we can sell the vehicle

Same up here. State wants that tax $. And the title fees.