Consignments

Leither · Member

Consignments

the rocket · Guru

Gotta wonder why they would sell something on consignment for u if they get nothing out of it. Sure will not pay their wages. Never heard of that.

rockylizard · Guru

Gday...

When a firm sells 'on consignment' they remove a 'fee' for the trouble ... it should be stated CLEARLY in the 'consignment contract' ... in the case of this post, one would assume it would be included in the 'contract of sale' to these folk, and for then selling it 'for these folk'.

https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland-laws-and-regulations/regulated-industries-and-licensing/regulated-industries-licensing-and-legislation/motor-industry-regulation/legal-requirements-motor-transaction/methods-of-selling-used-vehicles/selling-on-consignment-in-the-motor-industry

I would suggest if they are doing it at 'no cost' then they are just hiding it in their commission on the original sale.

They certainly would not be doing it out of the goodness of their liddle hearts. hmm

Cheers - John

-- Edited by rockylizard on Thursday 16th of November 2017 08:07:15 PM

2foot6 · Veteran Member

If it sounds too good to be true....it usually is.Perhaps get it down in writing and have it checked out by a solicitor.My past experiences with some motor dealers is they are not trust worthy.Trust me on that wink .Peter.

Peter_n_Margaret · Guru

How can a "dealer" do a better job selling YOUR van than you can do yourself, with a lot less risk?
There are lots of stories of consignment sales going bad and the owner not getting their money after the sale.
There are plenty of sites where you can advertise it yourself at minimal cost.

Cheers,
Peter

dabbler · Guru

An offer to sell anything they don't actually own is of great benefit to the selling agency and dubious benefit to the owner. They have nothing to lose, you have quite a bit to lose. Set your price high, they will sell other units off it and keep it as a sales tool. Set your price low, they make a quicker sale with little effort and you are giving cash away.

montie · Guru

Leither wrote:
We are in the throws of perhaps purchasing a demo Motorhome which we think we are getting at a pretty decent price, as we only want to keep it for about a year and then on sell one of the incentives is that they will sell it on consignment with no cost to us ?? Has anyone come across something like this before as it seems a bit generous to us, at this stage have not taken up the offer still trying to negotiate. Just trying to get a feel for things.
Also as this motorhome has a smaller fridge then we would have like (no room for larger one) we are considering a separate portable fridge freezer, a deep cell battery or a high capacity battery has been mentioned, does anyone have any recommendations on this, pretty new to this motorhome thing so trying to get some ideas etc.

Would welcome your thoughts.

leither

leither,
It would be very unusual for a dealer to sell your motorhome on consignment free of charge. Perhaps you misunderstood what the dealer said?
Consignment is a great way to sell your RV if you don't want to deal with the public or live in a remote area where attracting enquiry would be difficult. Commission in Qld is 10% plus GST. For that you get the benefit of exposure on numerous websites plus a prominent display yard usually in a busy area. In Qld there is little risk to you because if the dealer is licensed you are covered by the OFT dealer fund. It is advisable that you keep your insurance current whilst the vehicle is on consignment.
If you have any query about the vehicle you are purchasing you are welcome to PM me, but I would certainly be qualifying the "free consignment" offer a bit further. The reality is though you do not have to take up that offer in 12 months, you may well opt to sell privately if possible or simply sell directly to a dealer at wholesale price.

Old and tired · Veteran Member

It is pretty hard to buy and sell any car under a margin of about five thousand bucks. Everyone clips the ticket on the way through. in the very decent and straight motor business I worked in years ago, the owner took fifteen hundred bucks just to trade a vehicle. If we put it on the yard, the workshop manager then took a fair bit for the roadworthy and safety inspection, then the sales manager took a margin. All up at least four or five grand.

This is why a near new second hand car is usually close to discounted new price. The hard bitten cynical old car guys on the yard always bought a new car or a run out model, got the biggest discount they could, looked after the vehicle, and kept it for five years at least. Having learned the lesson I do the same when I can.

The on consignment thing can work ok, but only when the margin is the same as, or better than a wholesale vehicle or a trade in. Big dealers hardly make anything on a new car. The profit comes from the accessories, fake treatments, and the workshop. Warranty repairs are charged back to the manufacturer and are a good earner for the dealer as a rule.

Only buy the thing if you like the value proposition now. Ignore the re sale offer, which is probably sleight of hand. Motorhomes have stupendous resale anyway. Of course the loss on sale is impacted by the price at purchase. You are going to lose much more on a $100k vehicle than on a $60k one.

Leither · Member

Many thanks to all who replied re above, most helpful, and just what we thought, am being very very careful.

Another question please, what if any is the benefit of either a deep cell battery as opposed to a high capacity battery, or the other way around, the motorhome has a smaller fridge than we would like but no room for a bigger one so we were considering a small portable fridge freezer, any suggestions from the experienced travelers.

Cheers to noo

Tony Bev · Guru

Hi Leither

Firstly welcome to the forum

Re the reselling of a new motorhome, I can only go by my own experience, and suggest that the first year, is where it will lose the most value

I have seen receipts in my second hand motorhome for about $127,000 as delivered and sold in Perth WA
Second owner purchased it for (I am led to believe), $90,000 at two years old and around 8,000 kilometres
I as the third owner paid $60,000 at eight years old, and only just over 30,000 kilometres

Re the batteries
I assume you are asking about lithium (high capacity), verses AGM deep cycle batteries

There is no doubt that lithium, (from my research), are much better than AGM deep cycle, as far as their usable power goes
I have 2 x 120 AH AGM deep cycle batteries, charged by both engine and solar, through a DC/DC charger, which are more than adequate for my portable 12 volt chest fridge

If you are only going to keep the motorhome for one year, then your situation will dictate if the extra price of lithium, is to your advantage, or not

Hope that this info is useful to you

daffyfrancis · Senior Member

Hi,

I have seen an ad recently wanting consignment sales stock - the offer stated at no cost until sold - in other words they would provide advertising, cleaning & site holding costs etc. & their only charge is the "agreed" commission when actually sold.

David