Consignment
A selling arrangement where a vehicle owner keeps title while a dealership markets and sells the car on their behalf, taking a fee or margin at closing instead of buying the car outright.
In a consignment deal the dealership never owns the vehicle. The owner signs a consignment agreement that sets the asking price, the dealer's fee or split, and how long the car is listed. The dealer handles photos, advertising, showings, and paperwork, then remits the agreed proceeds to the owner once the sale closes. It lets a lot grow its selection without floor plan interest or purchase capital, and it gives private sellers a hands-off way to reach retail buyers.
Related terms
Bill of Sale
The legal document that records the transfer of a vehicle from seller to buyer, listing the parties, the vehicle, the price, and the terms of the sale.
OperationsReconditioning
The process of getting a newly acquired vehicle retail-ready, covering mechanical repairs, safety work, detailing, and cosmetic fixes before it goes on the lot.
SalesTrade-in
A vehicle a customer gives the dealer as part of the payment for another car, with its appraised value credited against the new purchase.