The Simplest Way to Understand Selling Your Car on Consignment

Selling a car can be a stressful and intimidating task, but understanding your options can simplify the process. Whether you want instant cash from a dealer, prefer handling the sale entirely yourself online or aiming for a hassle-free way to maximize your car's retail value, each method has its benefits. Here are your three primary options:

Sell It To A Dealer

This is the quickest way to sell your car. Bring it to a dealership for evaluation and appraisal. They will inspect it, and make you a "wholesale" offer, generally $3,000 to $4,000 less than your car's true retail value. Your loss is their profit. If you accept, you leave with cash or a check the same day. This method saves you time and effort but won't fetch the highest price compared to other options. For example, national auto dealer organizations like Carmax, Carvana, AutoNation and large franchise dealers are notorious for making "lowball" dealer offers - thousands below retail value.

Sell It Yourself Online

Selling your car online allows you to set your price and negotiate directly with buyers. Popular platforms like Craigslist, Facebook Marketplace, and Autotrader are easy ways to list your vehicle for sale. You'll need to detail your car, take good photos, write a detailed description, and be ready to communicate 24/7 with potential buyers, some of which are scammers, unqualified shoppers, and tire kickers. This option often results in a higher sale price but comes with stressful tradeoffs.  It takes longer to sell and requires far more effort, such as scheduling test drives, keeping the car clean, dealing with "no-shows" and strangers. And you will need knowledge about proper handling of post-sale paperwork with your local DMV office. Lastly, this option can become rather complex if you still have an open auto loan and lienholder and/or your private buyer needs financing to complete the purchase.

Sell It on Consignment

Selling on consignment combines the best of both other options:  you get a hassle-free selling experience and retail value for your car. It involves partnering with a local dealership that sells your car for you along side their owned inventory. You still own your car until the dealer sells it, but the dealer handles all aspects of the sale, from marketing to negotiating with buyers to handling post sale title transfers. This option typically takes 30-45 days, but it almost always yields the highest price since their consignment service aims to sell your car at its true retail value. They typically charge a fee or a percentage of the sale price, but the convenience and potentially higher returns can make it worthwhile.

Conclusion

Choosing the best method to sell your car depends on your situation and priorities. For quick cash, selling to a dealer is ideal. If you’re willing to invest time and effort, selling it yourself online can be lucrative. For a balance of convenience and higher returns, consignment offers the most compelling option. Understanding these choices helps you make an informed decision that suits your needs and maximizes your car’s value.