Free Car Consignment Form in PDF

Instructions on Writing Car Consignment

Filling out a car consignment form is a straightforward process that enables vehicle owners to consign their vehicles to dealerships for sale. This document outlines the agreement between the consignor (vehicle owner) and the consignee (dealership), detailing conditions such as the minimum selling price, commission rates, and responsibilities of each party. It is vital to fill out this form accurately to ensure a clear understanding between both parties and to avoid any potential disputes. The following steps will guide you through completing the form correctly.

1. Start by entering the name(s) of the consignor(s) - the vehicle owner(s) - at the designated line on the form.
2. Fill in the name and full address of the consignee (dealership) that will be selling the vehicle on your behalf.
3. Include the consignee’s telephone number and dealer number in the spaces provided.
4. Describe the vehicle in detail, including the year, make, model, vehicle identification number (VIN), license plate number, odometer reading, style, and exterior color.
5. Check off the appropriate boxes to indicate the vehicle’s features such as air conditioning, power locks, whether it has a navigation system, DVD system, and the type of seats (leather or cloth) including color.
6. Specify the engine type, transmission type, and whether the vehicle has a drivetrain that is All-Wheel Drive (AWD), Front-Wheel Drive (FWD), Rear-Wheel Drive (RWD), or Four-Wheel Drive (4WD).
7. Note any entertainment options present in the vehicle, such as AM/FM radio, cassette player, CD player, or CD changer, and whether the vehicle comes with manuals and maintenance records.
8. Indicate the name and contact details of the lienholder if the vehicle is currently under a lien.
9. Fill in the consignor’s insurance information, including agent name, insurance company, address, policy number, liability limits, and the effective and expiration dates of the policy.
10. Answer the questions regarding the vehicle’s history, including whether it has been in an accident, flood, had hail damage, has a branded title, or is currently unable to pass safety or emissions inspections. Provide details if any of these are indicated as "Yes".
11. Select the warranty condition that applies to the vehicle, whether it is being sold as-is without warranty, with a warranty, or not applicable.
12. List any work that the vehicle requires before being sold and indicate the vehicle's overall condition as Excellent, Average, or Poor.
13. Agree to the commission rates as set forth by the Consignee and note any additional fees that may apply, such as safety inspection/emission, finance facilitation fee, professional detail, and warranty plans.
14. Sign and date the form at the bottom, and provide your email, address, home phone number, and work phone number.
15. The consignee will also sign the form, confirming their agreement to the terms laid out.

Once the form is completed and signed by both parties, it serves as a legal agreement for the consignment sale of the vehicle. It is essential to keep a copy for your records. The dealership will now proceed with the necessary steps to advertise and sell the vehicle according to the terms agreed upon. Remember, communicating openly and promptly with the dealership during this process can help in selling the vehicle more efficiently and satisfactorily.

What is a Car Consignment Agreement?

A Car Consignment Agreement is a contract where the owner of a vehicle (the Consignor) hands over the vehicle to another party (the Consignee) for the purpose of selling it. This agreement grants the Consignee exclusive rights to sell the vehicle, outlines the minimum selling price, and sets the terms for the duration of the consignment, insurance requirements, and the responsibilities of both parties.

Who are the Consignor and the Consignee?

The Consignor is the person or persons who own the vehicle and are looking to sell it by consigning it to another party. The Consignee is the individual or dealer authorized to sell the vehicle on the Consignor's behalf. The agreement outlines the responsibilities and permissions granted to the Consignee regarding the sale of the vehicle.

What does "exclusive right to sell" mean in this context?

"Exclusive right to sell" means that the Consignee is the only party allowed to sell the consigned vehicle during the term of the agreement. The Consignor cannot engage other parties to sell the vehicle and must refer any interested buyers to the Consignee.

Can the minimum selling price be negotiated?

Yes, the minimum selling price is set at the beginning of the consignment agreement, but it can be adjusted if both the Consignor and Consignee agree. The Consignor has the final approval on any proposed sale price before the vehicle is sold.

What happens if the vehicle does not sell by the end of the agreement?

If the vehicle does not sell by the end of the consignment period, the Consignor has the option to retrieve the vehicle, extend the consignment agreement, or possibly adjust the terms to facilitate a sale. Any expenses incurred during the consignment period, such as repairs or detailed cleaning, may be due at this time.

Are there any fees involved in car consignment?

Yes, the Consignee usually charges a commission based on the sale price of the vehicle. This commission and any additional fees, like advertising costs or detailing services, should be clearly outlined in the consignment agreement. Some fees may only apply if the vehicle sells, while others might be due regardless of a sale.

What happens if the vehicle is damaged or stolen while under consignment?

The agreement requires that the vehicle remain insured against theft, fire, comprehensive damage, and liability throughout the consignment period, with the policy in the Consignor's name. However, the Consignee's responsibilities for damages or loss, unless due to negligence or other failure to adhere to the agreement, are typically limited.

Who is responsible for the vehicle’s insurance during the consignment period?

The Consignor is responsible for maintaining theft, fire, comprehensive, and liability insurance on the vehicle throughout the consignment period. The insurance policy must remain effective with the vehicle title staying in the Consignor's name until the sale is complete.

One common mistake made when filling out a Car Consignment form is failing to accurately describe the condition of the vehicle. This includes overlooking or omitting details about the car's history, such as whether it has been in an accident or has undergone major repairs. Providing incomplete or inaccurate information can lead to misunderstandings or disputes later on, potentially complicating the sale process. It's crucial for the consignor to be thorough and honest about the vehicle's condition to ensure transparency and trust with the consignee.

Another error often encountered is neglecting to specify the consignment fees and commission rates clearly. The form usually outlines how these costs are determined, based on the selling price of the vehicle. However, not paying close attention to this section can result in unexpected expenses or disagreements about the payment due to the consignee upon the sale. To avoid such issues, both parties should discuss and understand the commission structure and any related fees before completing the form.

Incorrectly listing the lienholder information or failing to disclose outstanding liens against the vehicle represents another significant pitfall. The consignment agreement requires information about any existing claims or interests, including the name and contact details of the lienholder, if applicable. Neglecting this step can complicate the sales process, especially if there are financial obligations tied to the vehicle that need to be settled before ownership can be transferred. Ensuring all lien details are accurately entered helps protect all involved parties and facilitates a smoother sale.

Lastly, a frequent oversight is not adequately addressing the insurance requirements during the consignment period. The agreement stipulates that comprehensive and liability insurance must remain in effect while the vehicle is under consignment. Often, consignors might assume the consignee's insurance covers all aspects or might forget to confirm their policy's standing. It's vital to verify that the vehicle remains insured to protect against theft, accidents, or damage, thus avoiding potential financial losses during the consignment term.

When you're looking to sell a car on consignment, there are several key documents and forms that are commonly used in addition to the Car Consignment form. These documents are essential for ensuring that the consignment process is smooth, transparent, and legally compliant. Each document plays a unique role in the process, providing protections and clarity for both the consignor (the car's current owner) and the consignee (the party selling the car on behalf of the owner). Let's take a closer look at some of these important forms and documents.

• Vehicle History Report: This report, such as a Carfax or AutoCheck, provides a detailed history of the vehicle, including past accidents, service history, and previous ownership. It's vital for establishing trust and transparency in the transaction.
• Bill of Sale: This document outlines the details of the sale transaction, including the sale price, vehicle description, and information about the buyer and seller. It serves as a receipt for the transaction.
• Consignment Agreement Addendum: If there are any special conditions or additional terms not covered in the initial consignment agreement, this document captures those details.
• Title Transfer Documents: These are required to legally transfer the vehicle's title from the consignor to the new owner. Each state has its own forms for this purpose.
• Odometer Disclosure Statement: Federal law requires that the seller disclose the vehicle's accurate mileage at the time of sale. This document serves that purpose.
• Vehicle Inspection Report: A pre-sale inspection report details the condition of the vehicle, including any problems or repairs needed. This is crucial for the consignee's evaluation and pricing strategy.
• Power of Attorney: This legal document authorizes the consignee to act on the consignor's behalf in matters related to the sale of the vehicle.
• Warranty Documents: If the vehicle is still under manufacturer warranty or if an additional warranty is being offered with the sale, those documents should be included.
• As-Is No Warranty Document: For vehicles sold without any warranty, this document clarifies that the buyer accepts the vehicle in its current condition.
• Consent to Background Check: Some consignees may require a background check on the consignor to prevent fraud. This document obtains the consignor's permission for that check.

Together, these documents ensure both parties are informed and agree to the terms of the vehicle's sale. They protect the interests of the consignor and consignee, providing a clear framework for the consignment sale. Always make sure to review these documents carefully and understand all terms before signing. Consulting with a trusted legal advisor can also provide peace of mind and ensure that all legal requirements are met throughout the transaction.

The Car Consignment Agreement bears similarities to a Real Estate Listing Agreement in that both serve as exclusive contracts entrusting an agent—whether a car dealer or a real estate agent—with the sole right to sell an asset on the owner's behalf. Both documents outline terms including the minimum acceptable sale price, commission rates, and the duration of the agreement, ensuring the owner retains control over the final sale approval while the agent works to find a buyer within the specified parameters.

Comparable to a Bill of Sale, the Car Consignment Agreement transfers interest in property (in this case, a vehicle) from one party to another. However, unlike a direct Bill of Sale transaction where ownership transfers immediately upon sale, the consignment agreement specifies conditions under which the vehicle's ownership will transfer from consignor to buyer, pending the fulfillment of agreement terms, such as sale price and commission payment.

Similar to a Loan Agreement, this document includes clauses that protect the financial interests of the parties involved. Just as a Loan Agreement specifies the responsibilities of the borrower and lender, including any collateral, the consignment agreement outlines the responsibilities of the consignor and consignee regarding the vehicle’s title and any lienholder’s details, ensuring clear terms for the financial handling of the vehicle’s sale.

This agreement has parallels with an Employment Contract through its provision for services in exchange for compensation. Like an employment arrangement where an employee agrees to perform specified duties for a salary or wage, the consignment agreement entails the consignee selling the vehicle on the consignor's behalf for a pre-agreed commission, highlighting the service-based relationship between the two parties.

Resembling an Insurance Policy, the Car Consignment Agreement includes stipulations regarding the maintenance of insurance coverage on the consigned vehicle. It mandates that comprehensive and liability insurance must be kept in effect throughout the consignment period, safeguarding against potential loss or damage, akin to how an insurance policy provides financial protection against specified risks.

An aspect of the consignment agreement echoes the structure of a Warranty, particularly where the document outlines the condition of the vehicle and any warranties or lack thereof. Like a warranty that provides assurances about the state of a product, this agreement requires the consignor to disclose the vehicle’s condition, including previous accidents or damages, ensuring the buyer is informed of what they are purchasing.

Reflecting elements of a Power of Attorney, the agreement authorizes the consignee to act on the consignor's behalf, albeit in a limited scope concerning the sale of the vehicle. It grants the consignee the power to market, negotiate, and finalize the sale, much like a Power of Attorney grants an agent the authority to act in legal or financial matters for another person based on outlined terms.

Lastly, the agreement mirrors a Non-Disclosure Agreement in terms of confidentiality and protection of the parties' interests. While not its primary function, the requirement to disclose or withhold certain information about the vehicle’s history, much like the controlled exchange of information in a Non-Disclosure Agreement, serves to protect the consignor's interests and ensures both parties adhere to mutually agreed-upon terms regarding the vehicle’s condition and history.

When filling out a Car Consignment form, it's important to be precise and careful. Here are some dos and don'ts:

• Review the form carefully before starting to ensure you understand all sections and what information is required.
• Provide accurate vehicle information, including the year, make, model, VIN, and current mileage. Accuracy is crucial for legal and sales purposes.
• Disclose the vehicle's history honestly, including any accidents, flood damage, or repairs. Transparency can prevent future disputes or legal issues.
• Understand the commission rates and additional fees involved. Knowing these details helps in calculating the net amount you can expect from the sale.
• Sign and date the form only after thoroughly reviewing all the provided information and ensuring that all agreements and conditions are understood.

• Omit any required information or sections in the form. Incomplete forms may delay the consignment process or affect the legal standing of the agreement.
• Sign the form without reading and understanding all its terms and conditions. This agreement legally binds you and the consignee.
• Forget to check for insurance requirements during the consignment period. Ensuring that proper insurance is in place protects you against potential losses.
• Ignore the vehicle's condition section. Accurately describing the vehicle’s condition (excellent, average, poor) can influence the sale process and price.
• Avoid discussing terms that are unclear with the consignee or seeking legal advice if necessary. It’s important to have a clear understanding of all obligations and rights.

When it comes to understanding Car Consignment forms, several misconceptions often cloud the judgment of both vehicle owners and shoppers alike. Below are six common misunderstandings, explained to shed light on the actual processes and terms.

• The consignment process is similar to selling a car directly to a dealer. This is incorrect. In a consignment arrangement, the consignee (the entity selling the car on behalf of the owner) does not purchase the vehicle from the consignor (the owner). Instead, the consignee markets and sells the vehicle, often taking a commission from the sale, but the title remains in the consignor’s name until the sale is finalized.
• The consignor does not have control over the sale price. A common misconception is that once the vehicle is handed over to the consignee for sale, the consignor loses all say in the final sale price. According to most consignment agreements, the consignor has to give final approval for any proposed sale price, ensuring they have control over how much their vehicle is sold for.
• All fees and commissions are standard across all consignments. Fees and commission rates can vary significantly from one consignee to another. It's important for consignors to understand that these costs are not one-size-fits-all but are outlined and agreed upon in the consignment agreement. These can include marketing costs, detailing, and necessary repairs or inspections to make the vehicle sellable.
• Insurance responsibility shifts to the consignee once the agreement is signed. Many believe that once a vehicle is consigned, the consignee takes over all responsibilities, including insurance. However, the agreement clearly stipulates that theft, fire, comprehensive, and liability insurance must remain in effect under the consignor’s name during the consignment period, protecting the owner in case of unforeseeable events.
• Consignors are immediately free from all obligations once the vehicle sells. After the sale of the consigned vehicle, consignors still have responsibilities, particularly if the vehicle had any encumbrances or liens. The consignment agreement usually outlines how these will be handled, often detailing that the net amount due to the consignor will have encumbrances paid off by the consignee from the sale proceeds.
• If the vehicle doesn’t sell, there are no costs to the consignor. This is a significant misunderstanding. Quite a few consignment agreements include clauses that may hold the consignor responsible for certain costs if the vehicle doesn’t sell within the agreed period, such as repair work or advertising costs.

Understanding the nuances of a Car Consignment agreement is crucial for both consignors and consignees. Being well-informed helps in setting the right expectations and in ensuring a smooth and satisfactory consignment arrangement for both parties.

When it comes to consigning your vehicle to a dealership or an agency, there are several key points to consider to ensure that the process is transparent, fair, and legally sound. The Used Vehicle Consignment Agreement is designed to protect the interests of both the vehicle owner (Consignor) and the entity selling the vehicle (Consignee). Here are some important takeaways:

• The agreement grants the Consignee the exclusive right to sell the vehicle, defining terms such as the minimum selling price and the duration of the consignment.
• It is important for the Consignor to provide a detailed description of the vehicle, including the year, make, model, VIN, and any additional features or damages, to ensure transparency and avoid future disputes.
• The Consignor must confirm that they have the title of the vehicle or list any lienholders, guaranteeing that there are no unresolved claims or interests against the vehicle which could hinder the sale.
• Maintaining insurance coverage on the vehicle throughout the consignment period protects both parties in case of theft, fire, or other comprehensive damages.
• The agreement should clearly outline the responsibilities of the Consignee regarding the use of the vehicle, the commission structure, and the inclusion of any additional costs such as advertising, detailing, or repair work.
• Before or during the consignment, if repairs are needed, the Consignee is obliged to seek the Consignor’s approval. These costs will be deducted from the net proceeds due to the Consignor upon sale.
• If the vehicle is sold or removed from the premises before the end of the agreement term, the Consignor might be liable for any incurred costs or agreed upon commissions.

Both parties entering into a Car Consignment Agreement must carefully review and understand all terms. In cases of disputes or dissatisfaction with the consignment process, parties should be aware they can contact the relevant state Department of Motor Vehicles (DMV) for assistance. This safeguard helps ensure accountability and provides an avenue for recourse should the terms of the agreement be violated. Ultimately, this agreement serves as a mutual protection measure, making it imperative that both the Consignor and Consignee maintain clear, honest communication and adhere strictly to the agreed terms.