The used RV market is hot and the numbers and types of selling channels are expanding. You can take help of a dealer to sell off your rig, you can place it on various listing sites to sell it online, or you can sell it on consignment.
Consignment means authorizing a dealership to sell your RV on your behalf. Until the unit is sold, you remain its owner, but cannot use it. The rig stays in the dealer’s lot until the dealer finds a suitable buyer. A consignment contract is valid for a specific period. The dealer is supposed to sell off the rig within that period or the contract stands canceled. It also includes a selling price.
To inexperienced sellers, consignment may seem to be the most hassle-free option – no placing ads, no meeting strangers, no negotiating. But wait, don’t jump into the consignment bandwagon without a closer look at this business model. A careful analysis will tell you that this mode of selling is replete with hidden risks. Here is why:
No Money till Actual Selling
You will not receive any money until the dealer finds a taker for your rig. After the sale, you will receive the amount, which is mentioned in the contract. If your coach sells for a higher price, it is the dealer, who keeps the extra money.
You Can Miss on Better Offers
The system keeps you tied to the contract for a fixed time period. Even if you get a better offer during this span, you will not be able to avail it. You will have to cough up a fee if you want to withdraw your RV before the specified time mentioned in your contract.
You Can’t Use it Despite Being its Owner
You are the owner only in name – the moment you leave your rig in the consignment dealer’s lot, you lose all rights over it. Forget about taking it out of the lot for a weekend trip and bringing it back.
The Consignment Dealer May Not Prioritize Your Case
Your rig is not the only one that the dealer has to bother about. He has to sell many other vehicles. He may be interested in selling the ones that are likely to give him a higher profit than that of yours. So, while you are still paying insurance premium or repaying your loan for your motor home, it could be collecting dust on the lot.
Now that you know the downsides of a consignment sale, avoid it at any cost. Contact us if you are having difficulties in finding a buyer for your rig. We can help you sell your RV fast and for a good amount of cash.