What is a consignment?
Consignment is an arrangement where you (the consignor) leave your vehicle with a dealer to sell. The dealer acts as an agent for the owner.
Can all dealers sell vehicles on consignment?
No. The Vehicle Sales Authority (VSA) has the authority to decide if a dealer will be allowed to conduct consignment sales. See web link below.
Are there any risks involved in selling a vehicle through consignment?
Yes. A dealer may go out of business and you may lose the vehicle or any money owed to you. B.C. law requires that a dealer enters into a consignment agreement with you, and identifies that certain terms and conditions must be included.
What happens if I experience a loss?
You can contact the VSA if the dealer does not return the unsold vehicle or give you the money from the sale of the vehicle. This could occur if the dealer goes out of business or if the dealer acted improperly.
How much do I have to pay the dealer?
The amount of payment is between you and the dealer. Legislation allows the dealer to charge a straight fee, a percentage of the sale, or to keep any amount over a set minimum selling price you want to receive for the vehicle. The consignment agreement must clearly state how the dealer gets paid and when you get your money from the sale.
Are there any risks involved in purchasing a vehicle on consignment?
Yes. For example, there may be an unpaid lien or conflicting legal interests over the consigned vehicle. Ask the dealer about any liens on the vehicle.
Do dealers have to follow specific rules when selling on consignment?
Yes. The Motor Dealer Act and the Motor Dealer Consignment Sales Regulation require dealers to disclose that a vehicle is on consignment in advertising and on the purchase agreement. The purchase agreement must also meet specific requirements.
Is consumer protection available for a vehicle purchased on consignment?
If you bought from a licensed dealer, yes. You will have the same protections as if you bought a new or used vehicle owned by a dealer.
If you have any questions, please contact VSA Consumer Services.
NOTE: This is to provide general information and is not intended to be legal advice.