If you are selling your used car in Singapore, there are a few ways you can do it, but one of those is not very common, yet it is pretty tempting. We are talking about selling your car by consignment.
In short, what consignment promises is that you can decide on the price, you can keep full ownership until the car is sold and a consignment agent will do all the work.
Sounds perfect? Let’s take a closer look.
The Benefits of Selling Your Car by Consignment
As we all know, buying, selling, owning and even thinking about cars in Singapore can be tedious, convoluted and very costly endeavours. COE makes everything even more complicated and the related paperwork is something nobody really enjoys.
Luckily, other people can do this for you and even give your car more exposure to potential buyers.
These people are either dealers or consignment agents.
The advantage of selling your car by consignment in this respect is that you determine the price, even though an experienced consignment agent will be able to provide guidance. The dealer will usually offer you a price that is noticeably lower, so if you are looking for someone to deal with the paperwork and the actual sale and still get the top dollar, consignment is the way to go.
Moreover, consignment agents will usually have the option of offering potential buyers good financing options since they work with banks. This also increases the chances of selling the car faster and it also makes your car an option for buyers who do not plan to pay the full amount immediately.
With our car prices here, this is a really welcome benefit.
Secondly, if you opt for consignment, you can actually still drive your car, much like you would if you were selling it yourself. However, most consignment agents will also give you an option to leave the car in their showroom so that they can show it to potential buyers.
If you have another car to drive, this is a good idea as it may speed up the sale.
If you opt to drive your car while it is being marketed and there is an interested party, the consignment agent will organize the best time and place for the buyer to view the car. This is a bit more work for you, as you need to bring the car but having the option of driving the car while someone else is selling it for you is a major benefit and well worth the occasional meeting with potential buyers.
Next, a consignment agent will deal with the marketing and promotion of your sale. These agents will usually be experienced; they will have a good system and even their own channels. If your car is good or if your asking price is a good one, they may even already know someone who may be interested in buying your car.
Lastly, if you ever sold something popular online, you may know what an issue phone calls and messages from buyers can be, especially the ones who waste your time trying to get you to significantly reduce the price. If you are too busy to deal with this, a consignment agent is the way to go.
The Downsides of Selling Your Car by Consignment
Yes, you get to set the price and it will usually be better than what the dealer offers, but if you think an agent is going to do all the paperwork, marketing and organization and get nothing out of it, that won’t likely be the case.
The price of their services varies, but most of them will take a certain percentage of the selling price. The percentage is something you might be able to negotiate with the agent. Even with this cost, selling your car for a reasonable price would probably land you more cash than a dealer would offer.
Where the dealer has the advantage in most cases is the speed of the sale. While you do need to drop your price for a dealer, you get the money immediately. With consignment, you have no idea how quickly your car will be sold. If you are in a rush, you can try consignment, but ultimately, the dealer is the fastest option.
Unlike dealers, consignment agents will not be bound by the lemon law and they will rarely fix any issues the car has. While this is not very important for you as the seller, some buyers will rather take these advantages and go with the dealer. It is not a major downside, but it does reduce the number of potential buyers a bit.
Should You Sell Your Car by Consignment
It really depends on what your priority is. If the speed of sale is your main concern then a dealer is the way to go. If you agree on the price, you get the money immediately and that is it. If you want to get the best price possible, then selling it yourself is the best option. However, if you want someone else to do all the paperwork, consignment and dealer are the available options.
Consignment sits between selling the car yourself and using a dealer. You get more money than a dealer would offer, but less than if you did it all yourself; you don’t need to deal with the paperwork and marketing, but you do need to wait for the right buyer to come along.
Speaking of which, while it may sound that there is no difference in the speed of sale between doing it yourself and using a consignment agent, that is rarely the case. The routine, established marketing routes, the previous reputation of the agent, having an actual showroom where buyers can walk into and knowledge of the market all means the right buyer is more likely to find your car via a consignment agent than car classifieds.
If you are planning to sell your car, make sure to send us your details for the best quote possible.