Selling on Consignment?

[ia_wanderlust]

Hello all RV Experts on this forum! I lurk a lot and post very little, but I enjoy all of the info on here!

My question is about selling a trailer on consignment (2013 Heartland Trail Runner FQBS). Do any of you have experience with a consignment sale? I personally do not and am looking for opinions, such as what most places charge, what is fair, success or horror stories, etc... It is essentially a new trailer used only a few times, so I know I will take some type of hit, but I am not looking to give anything away either. What would be a fair amount, say percentage wise, that I may lose on this thing? While I love camping and using the trailer, an injury is going to limit my ability to camp at all this year, and some unexpected financial changes in my life tell me it may be a good idea to cut back on the toys... In any event, whatever I do, at least we still have tent camping! I am not completely decided on selling, but just looking to see what experiences others have had in this area, as a way to help me make a better decision. Thanks in advance for all your input!

BTW, selling outright through Craigs List is a consideration too. I just don't know if the rv lots ability to get buyers financing, greater exposure, and such might make for a faster, easier sale and possibly bring more money from said sale, which would help offset the consignment fees?

[catldog]

I have had several dealings with PPL,we bought our first Class a thru them,they handled everything for us(kinda like a car dealer)When we started looking to upgrade last year, we found a unit at PPL that would work,original thought was to trade in our first unit on the upgraded one.They made a ridiculos offer on our old unit which was half of what we still owed on it.We decided to make the deal on the upgrade anyway,and sell the old unit outright(on Craigslist or something like that)After we closed on the new unit,they asked what we we going to do with the old unit,which we told them our plans.They said why don't we put it on their consignment lot.The value of the old unit changed tremendously when that happened.Their commission was 10% on the selling price.You give the power of attorney on the vehicle to them,which gives them negotiating rights,after you set the absolute low price you will take.In the end they sold our old unit in 10 days and handled everything,I would deal with them again.jg

[Nomadac]

Before you consign I would check with your RV Insurance Co. to see if damage, theft, etc. would be covered while on a Dealers Lot. A Dealers Insurance will not cover anything they do not have Title to and a Consignment would exclude any coverage by them. Be sure you get everything in writing to be sure.

[dennislanier]

If and when I decide to sell my motorhome, it will most likely be on consignment. I may decide to try it on craigslist for a short time, but I have tried selling trucks a couple of times and it can be a hassle. Lots of scammers, "low-ballers" and e-mailers asking "is it still available" etc. Plus do you really want people coming to your house or having to meet complete strangers in a parking lot somewhere? The obvious main advantage in craigslist is you get to keep all the money as opposed to paying a commission. But how many people have the cash to pay the price without going thru some kind of lengthy loan process? The one time a while back that I checked on selling my MH on consignment I was told that I could tell them what I wanted to "clear" and they would add their commission on top of that, arrange my payoff, arrange financing for the new buyer and handle all the paperwork. Plus they get a large amount of traffic, people looking specifically for what you have to sell and you don't have to arrange your schedule around a potential buyer. Many more pros than cons if you do your homework beforehand and make sure you understand all the details. Good luck.

[joe_b_]

Make sure you stay in control of the process. We sold a Class A through a dealer here in Florida, that turned into somewhat of a nightmare. We signed a consignment agreement where we stated the price we wanted to receive and the dealer then set the asking price. Turned out we had a very greedy dealer, that wanted to make a killing on the sale. It ended up on his lot for most of a year, then we finally had to cut our price to get it sold. Then I had to threaten legal action to get the dealer to pay off our bank loan on the RV after it was sold. I felt the dealer should have received a $3,000 to $5,000 profit for his work on selling it, but he felt he should get more like $15,000 to $20,000. Found out later he had received several offers where he would have made about $5,000 but he turned them down without contacting me.

Just remember, the paperwork you sign will have been drawn up by the dealer's attorney and it is slanted toward the dealer. Get a copy of the agreement ahead of time, if possible, and spend some time reading and understanding what it contains before you sign. We ended up making payments and carrying insurance for almost a year because of our greedy dealer. But I have to accept the blame for not completely understanding the paperwork I signed. 😞

Not sure I would give the dealer a "power of attorney" again either or just wait till it sells and go in to sign the transfer paperwork myself. It should have worked fine, but didn't. I understand many people have excellent experiences dealing with a consignment dealer such as PPL in Houston.

[Bumpyroad]

Go Dogs wrote:
I would ask, who has to carry insurance on the unit in a consignment lot? Also, if you owe money on the unit, will the consignment lot take care of the bank loan. after the new buyer purchases the unit?

on the lot while it belongs to you you better keep insurance on it.
and in my particular case, once he had a buyer, the dealer bought it from me and then he sold it to the purchaser.
bumpy

[Go_Dogs]

I would ask, who has to carry insurance on the unit in a consignment lot? Also, if you owe money on the unit, will the consignment lot take care of the bank loan. after the new buyer purchases the unit?

[Bumpyroad]

in some states such as Maryland a dealer can't sell them on consignment. I was told that everything on their lot had to be theirs. of course about 99% of the stuff on their lot is actually owned by the bank. 🙂
bumpy

[3_dog_nights]

Local dealer sold mine in two weeks, I'd do it again. We agreeded on a flat fee and added that to my asking price. He sold it for listed price. THe key to quick turn is cleaning the unit. Look around at the used units on their lot or criagslist. They have crumbs in the cabinets, dirt in the corners and windows with fingerprints all over them. My wife and I cleaned ours one afternoon, took about four solid hours (10 years old) but that thing was clean and smelled clean. Dealer said the buyer wasn't sure, but his wife said this one! she had been looking at the others and sneering the whole day.

[Bumpyroad]

if you are in no hurry, put it on Craig's list for starters.
IIRC I think they wanted 18% when I had my bounder on consignment, but when a buyer offered a little less than I wanted in my pocket, the dealer dropped his fee to make a sale.
bumpy

[gcloss]

Last year I purchased a new to me Jayco Eagle from a Craigslist seller. For me it was a great deal, but that meant me owning two travel trailers at the same time.

I put our smaller Jayco 20 BH on Craigslist for about two weeks. I got lots of calls and emails about the trailer. Some came to look, others made appointments to look and simply never showed up or called back. The ones that showed up were either tire kickers with no intent to buy or simply should never buy a TT. I turned one guy away who wanted to buy a 6000 pound trailer and tow it with a Chrysler Mini-Van.

I wasn't desperate for money, but didn't need to own and store two TTs. I called my Jayco dealer where I purchased the Jayco 20BH (and does all of my servicing) and made a deal for them to take it on consignment. I did some research at the time and found that a 10% commission was the common rate for consignment sales. We agreed upon a price based on NADA book values, as well as the 10% commission based on the final selling price.

The dealer is a well-respected family owned RV dealer in business for 62 years who gets lots of traffic for new and used RVs. It was also a smaller trailer then what he normally would not have on his lot, which drew a lot of attention from people with large SUVs. The trailer was on his lot for less than 10 days when a deal was made with a buyer. The dealer took care of all of the paperwork for me (bill of sale, MV forms, etc.) and did a pre-delivery walk thru with the new owners.

I don’t have time for the nonsense that goes on with people who want to buy something and want everything for nothing. If I had to do it again I would try a consignment sale again. Also, when I purchase a new car or truck I always trade in a vehicle.

Right now I’m trying to sell a motorcycle on Craigslist and at the end of my ad I put “If you have to ask your wife or girlfriend before you buy, don’t waste my time or your time”.