Reasons to Avoid Consigning Your Exotic Car
Selling your exotic car can be a time-consuming process that involves listing it, dealing with inquiries, and the headache of scheduling showings.
This leaves a few options:
- You can try to sell the car on your own to a consumer.
- You can consign it with an operation that sells cars.
- You can sell your car to We Buy Exotics and get cash now.
Option #1 means you would have to become a retail car salesman yourself, which is time-consuming and risky.
The other two remaining options mean you can either sell the car to us for cash now and go back to living your life, or you can give your car to a dealer via consignment and deal with yet another headache.
When you consign your exotic car, you typically end up selling the car 90 days later for less money than what you could have sold it for initially, meanwhile you assume all the risk during the process.
Let’s take a look at all of the reasons you should reconsider consigning your high-end car…
Less Than Ideal Returns
When using a consignment program, you won’t receive the full selling price of your luxury car because you’re working with a middleman. The consignment dealer will charge a fee that covers advertising, professional photos, storage, and sales efforts on your behalf. This fee will be a percentage of the final sale price or a pre-determined amount based on your lowest accepted price. Regardless, this fee is often quite high and will eat into your profits significantly.
Plus, you are still responsible for certain expenses, such as insurance, maintenance, and storage fees, which can further reduce your overall profit. Essentially, you are handing over a free asset to a car dealership for them to make money off of it while you lose money in the process.
Can’t Always Trust Consigners
Let’s take a look at CNC Motors, a renowned premium automotive dealer and consigner in California. Recently, it was uncovered that the founder and CEO engaged in fraudulent activities behind the scenes by diverting profits, selling consigned cars without the sellers’ consent, and withholding rightful payments. This resulted in cars being sold illegally without proper titles which caused losses that totaled millions of dollars in value.
Although the CNC Motors case is an extreme example, it highlights the fact that handing over your car to a consignment dealer means trusting them with your valuable asset.
Keep in mind that the dealerships are probably going to tell you whatever you want to hear to get a free asset out of you, so there is always a risk of fraud or mismanagement—or you simply run the risk of handing over your asset to someone who doesn’t understand the true value of your exotic car.
Lengthy Selling Process
The whole consignment process can take a long time since the dealer may have multiple cars to sell, and yours might not be their top priority. Therefore, the longer your car sits on the consignment lot, the more it will depreciate in value.
Collector cars, in particular, can be sensitive to market value fluctuations, and extended periods of time on consignment will result in a lower sale price. If you need to sell your luxury vehicle quickly, this is not the best option.
Potential Damage or Misuse of Your Car
It’s important to remember that when you consign, you still own the car. You’re still paying insurance. You take on the depreciation risk. You pay for the damages, even if the car breaks in their lot.
In other words, when damage happens from misuse of your car, you’re responsible for it.
Consignment dealers often allow potential buyers to view your exotic vehicle in their showroom or even test drive it. This increases the risk of accidents, which could lead to more significant expenses and complications, and your insurance might not cover damages while your exotic car is in consignment. In some cases, the consignment dealer should have their own insurance, but it’s essential to understand that your property might not be fully protected.
No Guarantee of Sale
There is no guarantee that your car will sell while on consignment. There are many reasons why this might happen. For example, placing your car in consignment means it will be among other exotic cars of varying layouts and prices. Potential buyers might be swayed towards other cars, potentially resulting in a loss for you.
Another reason is that if a potential buyer shows interest or approaches you directly about your car, you’ll have to redirect them to the consignment dealer which could deter some buyers who prefer dealing directly with the owner or lead to price negotiations that don’t align with your desired outcome.
Choose The Efficient, Modern Option
Avoid the hassle and sell to We Buy Exotics today!
Whether you’re selling an exotic car you own or swapping a lease, the safest and easiest method for getting fair compensation for your vehicle is through We Buy Exotics
- Aston Martins
At We Buy Exotics, we make the selling process as fast as the cars you like to drive. Selling your car and receiving your cash all happen within four easy steps:
- Submit your VIN, model and make information
- Access your cash offer in just minutes
- Accept your offer via phone or computer
- Schedule the pickup time
No matter where you are, you can receive a cash offer within minutes, and no matter where you’ll be, we will schedule a convenient pick-up to finalize the exchange.
Submit your info today to get your instant cash offer!