Typical cost of selling via consignment?

We sold our 2013 Cougar last Fall through a local consignment dealer. He came to the house inspected the unit, told us what the "Blue Book" was and what he thought they could sell it for. The charge would be 10% of the selling price and a 200$ inspection fee when it sold. He stated this is the amount that should be asked for this unit whether you sell it or I sell it.

We called him back a few days later and said OK, he came and got the trailer towed it to their lot, did the cleanup and prep work and put it on the sales lot. Five days later he called and said "Come and pick up you check", and we did.

The contract we signed gave them the right to retain the unit for 60 days and offer it for sale, we maintained the insurance and license during this time, we also retained the "pink slip".

No fuss no muss and no hassel.
Would I use them again, you bet.
Tinbender

T18skyguy wrote:

mich800 wrote:

T18skyguy wrote:
The language used was "all property on the defunct business is assigned to the lienholders"

That sounds like part of a financing statement or collateral agreement. There is way too much missing in that statement to mean anything. The biggest being what consideration was given to transfer ownership. They may have actually sold the unit to the dealership and they agreed to payment after they get paid but that is not consignment that is a sale. In that case they are an unsecured creditor.

There we're 30 of them, and they we're on consignment for sale. I actually knew one of the individuals. I know that the dealership was hundreds of thousands in debt. Perhaps they declared bankruptcy. They closed and chained the gates and not a single owner was allowed on the property. They lost their rigs. I'm not a lawyer, so you guys tell me how that could happen. One other thing I remember, is the rig owners had a legal right to get paid, but it all went to satisfy the senior lien holders, and there was nothing left in the kitty after the seniors got paid.

That is the classic scenario when the lender demands on the note and takes control. If these people were duped or unknowingly transferred ownership, yes they were SOL and had to stand in line. But I would be shocked to see any law requiring this transfer for a consignment or broker arrangement. Secured lenders deal with consigned inventory all the time. In fact every deal I audit consigned inventory is excluded from the borrowing base eligibility. There is far more to this story. It would actually be an interesting one to look at and see what happened.

mich800 wrote:

T18skyguy wrote:
The language used was "all property on the defunct business is assigned to the lienholders"

That sounds like part of a financing statement or collateral agreement. There is way too much missing in that statement to mean anything. The biggest being what consideration was given to transfer ownership. They may have actually sold the unit to the dealership and they agreed to payment after they get paid but that is not consignment that is a sale. In that case they are an unsecured creditor.

There we're 30 of them, and they we're on consignment for sale. I actually knew one of the individuals. I know that the dealership was hundreds of thousands in debt. Perhaps they declared bankruptcy. They closed and chained the gates and not a single owner was allowed on the property. They lost their rigs. I'm not a lawyer, so you guys tell me how that could happen. One other thing I remember, is the rig owners had a legal right to get paid, but it all went to satisfy the senior lien holders, and there was nothing left in the kitty after the seniors got paid.

rockhillmanor wrote:

T18skyguy wrote:

Mbiviano wrote:

T18skyguy wrote:
When you consign a rig, you are actually transfering ownership to them. Keeping the title doesn't matter. Rigs on consignment are considered assets of the business.

I'm not discrediting your specific situation, but this statement is generally not accurate with consignments. Are you legal savvy enough to share what would be different with RV consignments than regular consignments?

You don't need to be legally savvy when you see it with your own eyes. I witnessed this in Madison Wisconsin. I put up a thread on it on an RV site, and people in a handful of states responded that it was also the law in their state. I talked to the people in Madison that lost their rigs. Some had the titles, some didn't. It didn't matter. In the signed contract ownership was transferred to the consignment dealer. Perhaps this is not true in every state, but I'm certain it is in some. Another one being Arkansas I think. The language used was "all property on the defunct business is assigned to the lienholders"

I sold my RV in Wisconsin just outside Madison and that was "not" the case. Perhaps it was a County law and/or pertinent to the specific dealer how they were doing business. And if the RV had a lien on it. In my case my RV was paid for.

It is not law. It simply was not a consignment contract or an unethical dealer. And if they were insolvent when they took possession owners do very shady things thinking they will cover the shortfall with new sales.

T18skyguy wrote:

Mbiviano wrote:

T18skyguy wrote:
When you consign a rig, you are actually transfering ownership to them. Keeping the title doesn't matter. Rigs on consignment are considered assets of the business.

I'm not discrediting your specific situation, but this statement is generally not accurate with consignments. Are you legal savvy enough to share what would be different with RV consignments than regular consignments?

You don't need to be legally savvy when you see it with your own eyes. I witnessed this in Madison Wisconsin. I put up a thread on it on an RV site, and people in a handful of states responded that it was also the law in their state. I talked to the people in Madison that lost their rigs. Some had the titles, some didn't. It didn't matter. In the signed contract ownership was transferred to the consignment dealer. Perhaps this is not true in every state, but I'm certain it is in some. Another one being Arkansas I think. The language used was "all property on the defunct business is assigned to the lienholders"

I sold my RV in Wisconsin just outside Madison and that was "not" the case. Perhaps it was a County law and/or pertinent to the specific dealer how they were doing business. And if the RV had a lien on it. In my case my RV was paid for.

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T18skyguy wrote:
The language used was "all property on the defunct business is assigned to the lienholders"

That sounds like part of a financing statement or collateral agreement. There is way too much missing in that statement to mean anything. The biggest being what consideration was given to transfer ownership. They may have actually sold the unit to the dealership and they agreed to payment after they get paid but that is not consignment that is a sale. In that case they are an unsecured creditor.

We tried consignment with our 1st TT. The dealer said we'd owe nothing if it sold and we bought an Rv from them. They even hauled it to the local Fall RV show.
I don't remember what the cost for consignment was if they sold it and we bought elsewhere. It didn't seem unreasonable at the time.
It never sold and we traded it in on another so never did get to follow through on the original deal.
Nothing ever mentioned about turning over a title.
Now someplace that deals only in consignments may do matters differently.

Mbiviano wrote:

T18skyguy wrote:
When you consign a rig, you are actually transfering ownership to them. Keeping the title doesn't matter. Rigs on consignment are considered assets of the business.

I'm not discrediting your specific situation, but this statement is generally not accurate with consignments. Are you legal savvy enough to share what would be different with RV consignments than regular consignments?

You don't need to be legally savvy when you see it with your own eyes. I witnessed this in Madison Wisconsin. I put up a thread on it on an RV site, and people in a handful of states responded that it was also the law in their state. I talked to the people in Madison that lost their rigs. Some had the titles, some didn't. It didn't matter. In the signed contract ownership was transferred to the consignment dealer. Perhaps this is not true in every state, but I'm certain it is in some. Another one being Arkansas I think. The language used was "all property on the defunct business is assigned to the lienholders"

T18skyguy wrote:
When you consign a rig, you are actually transfering ownership to them. Keeping the title doesn't matter. Rigs on consignment are considered assets of the business.

I'm not discrediting your specific situation, but this statement is generally not accurate with consignments. Are you legal savvy enough to share what would be different with RV consignments than regular consignments?