Vehicle Consignment in Texas
How consignment works in Texas: typical fees, title handling, contract terms, and how to find a licensed dealer.
Texas consignment fees depend on vehicle value and dealer. Standard lots charge 10-12% of the final sale price. Some dealers offer flat-fee listings for vehicles priced above $15,000. Storage fees may apply if the vehicle does not sell within the agreed term.
How Consignment Works in Texas
Vehicle consignment is common across Texas, particularly in Dallas, Houston, Austin, and San Antonio. Texas law requires consignment dealers to hold a GDN (General Distinguishing Number) license. Many used car consignment lots have emerged to serve the active Texas private party market.
Consignment vs. Private Sale
| Factor | Consignment | Private Sale |
|---|---|---|
| Time investment | Minimal — dealer handles showings | High — you manage all inquiries, showings, and paperwork |
| Sale price | Market rate, minus 8-15% dealer fee | Full market rate if the deal closes |
| Speed of sale | Typically 2-6 weeks | Days to months depending on pricing and market |
| Paperwork | Dealer handles title transfer, tax | Seller and buyer manage all paperwork |
| Exposure | Multi-platform dealer listings + lot traffic | Single platform (Marketplace, Craigslist, etc.) |
| Scam risk | Low — dealer screens buyers | Moderate — seller must screen directly |
Texas consignment dealers typically retain the vehicle during the sale period. The title stays in the owner's name. Upon sale, the dealer handles the Form 130-U paperwork and title transfer at the county tax office.
Texas requires a written consignment agreement. Key terms to clarify: listing price, minimum sale price, consignment period, daily storage fee if applicable, cancellation notice period, and who pays any reconditioning costs.
Texas 6.25% motor vehicle sales tax is collected by the buyer at the county tax office when they transfer the title. The consignment dealer does not collect sales tax at the time of sale.
Texas consignment lots often have relationships with local auction houses as a fallback if the vehicle does not sell during the consignment period. Ask about this option when negotiating your agreement terms.
Frequently Asked Questions
If you decide to sell privately instead, a Texas-specific bill of sale handles the paperwork in one step.
Get Texas Bill of Sale