Vehicle Consignment — Complete Guide
How vehicle consignment works, typical fees, what your contract should include, and state-by-state licensing requirements for all 50 states.
How Vehicle Consignment Works — 6 Steps
- 1Choose a Licensed DealerOnly licensed dealers can legally accept vehicles on consignment. Verify the dealer's license with your state DMV or Secretary of State before signing anything.
- 2Agree on Listing Price and MinimumSet the listing price, your minimum acceptable sale price, and the dealer's commission structure in writing before delivering the vehicle.
- 3Sign the Consignment AgreementThe agreement should specify: listing price, minimum price, consignment period, daily storage fee (if any), cancellation notice period, and who is responsible for insurance during the period.
- 4Deliver the Vehicle and DocumentationDeliver the vehicle with the title (or a lien release if financed), service records, and two sets of keys. Keep copies of everything.
- 5Dealer Markets and Shows the VehicleThe dealer lists the vehicle on their lot and platforms (AutoTrader, Cars.com, CarGurus, Marketplace) and handles all buyer inquiries, showings, and test drives.
- 6Close and Receive PaymentWhen the dealer closes a sale, they handle title transfer paperwork and remit your agreed net proceeds (sale price minus commission) typically within 2-5 business days.
Consignment Fee Structures
Percentage of Sale
8-15%
Best for: High-value or unique vehicles where the dealer's buyer network adds meaningful price upside
Example: 12% on a $20,000 vehicle = $2,400 fee, net to seller $17,600
Flat Fee
$300-$1,500
Best for: Reliable sellers who expect a quick sale and want a predictable cost structure
Example: $700 flat fee on a $20,000 vehicle = 3.5% effective commission
Hybrid (flat + % above floor)
$200 base + 5% above floor
Best for: Dealers who need incentive to push for top dollar rather than a quick minimum-price sale
Example: $200 + 5% of sale over $15,000 floor on a $20,000 vehicle = $450 fee
Consignment Fees and Licensing by State
| State | Typical Fee | License Required | Market Availability |
|---|---|---|---|
| California | 10-15% | CA DMV Dealer License | Very common — major metro markets |
| Texas | 8-15% | TxDMV GDN License | Very common — Houston, Dallas, Austin |
| Florida | 10-15% | FL Dealer License | Very common — Miami, Tampa, Orlando |
| New York | 10-15% | NY DMV Dealer License | Common — NYC metro focus |
| Illinois | 8-12% | IL SOS Dealer License | Common — Chicago metro |
| Ohio | 8-12% | OH BMV Dealer License | Common — Columbus, Cleveland, Cincinnati |
All 50 States — Vehicle Consignment Guides
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingPuerto Rico
Frequently Asked Questions
What is vehicle consignment?
Vehicle consignment is an arrangement where you leave your car with a licensed dealer who markets and sells it on your behalf, typically for a percentage of the sale price or a flat fee. You retain ownership until the vehicle sells.
How much does consignment cost?
Typical consignment fees range from 8-15% of the final sale price, or flat fees of $300-$1,500 depending on the dealer and vehicle value. Some dealers also charge storage fees if the vehicle does not sell within the agreed consignment period.
Is consignment better than selling privately?
Consignment is better than a private sale when your time is limited, the vehicle is high-value or difficult to sell privately, or you want professional handling of buyer inquiries, test drives, and paperwork. Private sales typically net more money if you have time to manage the process yourself.
Who holds the title during consignment?
The title typically stays in the owner's name while the vehicle is on consignment. The dealer handles the title transfer paperwork at the time of sale. Some dealers request a limited power of attorney — review this carefully before signing.
What should a consignment contract include?
The consignment agreement must specify: listing price, minimum acceptable sale price, consignment period duration, dealer commission structure, daily storage fees after the period ends, insurance responsibility during consignment, cancellation notice requirements, and the process for retrieving the vehicle if it does not sell.
How do I verify a consignment dealer is licensed?
All legitimate consignment dealers must hold a valid dealer license from your state's DMV or Secretary of State. You can verify dealer licensing through your state's dealer license lookup portal — typically available on the DMV or SOS website.
Selling Privately Instead?
If you decide to skip consignment and sell directly, get a state-specific bill of sale that handles all the paperwork.
Generate Your Bill of Sale