Car consignment fees: calculate the cost before you sign

Ask how the fee is calculated

Request a written answer to each question before comparing quotes:

• Is the fee a percentage of the actual selling price, a fixed charge or another formula?
• Does a minimum apply, and can more than one fee be charged?
• Are photography, advertising, detailing and storage included?
• Who approves repairs and transportation expenses?
• What is owed if you withdraw the vehicle or it does not sell?
• Is payment due upfront, at sale or at another point?

These are questions to investigate, not a claim that every consignor charges for each item. Read the car consignment overview if you are still comparing consignment with selling the car yourself.

A worked fee comparison

Suppose Quote A charges 6% of the selling price, with a $1,000 minimum. Quote B charges $1,500. In this hypothetical example neither has extra charges. At an $18,000 selling price, Quote A costs $1,080 and leaves $16,920 before payoff. Quote B leaves $16,500. At $28,000, Quote A costs $1,680 and leaves $26,320, while Quote B leaves $26,500.

Under those assumptions the fees are equal at $25,000. Below that figure the minimum and percentage need to be checked; above it the fixed fee is smaller. These sample rates are not industry averages. Real differences in service, achieved price and extra expenses may matter more than the commission comparison alone.

Separate the sale estimate from a firm offer

A business may suggest an asking price without promising that you will receive it. Record the proposed asking price, realistic comparison scenarios and the lowest amount you would accept after costs. Do not compare a hopeful retail price with a dealer's actual written purchase offer as though both were guaranteed.

Use private-sale pricing guidance to organize comparable vehicles. Keep loan payoff separate from the fee: it reduces cash remaining but is not compensation paid to the consignor.

Put extra charges in writing

Ask for approval limits on repairs and preparation, how receipts will be supplied and whether storage charges change after the agreement ends. Read cancellation and exclusivity terms carefully before listing the vehicle somewhere else. Get clarification on settlement timing and responsibility for a buyer payment problem.

As one jurisdiction-specific example, California DMV requires a signed consignment agreement. That rule does not establish a national fee schedule. Confirm the rules and contract requirements where the transaction takes place.

Build your own comparison

Download the consignment comparison worksheet. Enter each proposal, the fee formula, estimated sale price, other costs and payoff. Calculate the results yourself using the instructions in the sheet; it is a planning worksheet, not an appraisal or automated quote.

Then compare the result with an outright offer and the costs of a private sale. Our guide to choosing a consignment business covers the service side. If you decide to manage your own inquiries, start a private listing on CarTruvo.