Consignment vs. selling outright.

When it's time to part with an exotic car, most owners end up choosing between two dealer routes: take a cash offer today, or hand the car to a dealer to sell at retail on your behalf. Both are legitimate. Which one leaves you better off depends on your timeline, your car and the dealer's terms.

How each option works

Selling outright

A dealer inspects the car, makes an offer, and if you accept, buys it from you. You're paid, usually by wire, and the dealer takes on everything that comes next: reconditioning, marketing, carrying costs, and the risk that the market moves before the car resells. Because the dealer carries that risk and needs a margin, the offer sits below retail.

Consignment

You keep ownership while the dealer markets the car to retail buyers. When it sells, the buyer pays the dealer, the dealer pays off any loan, deducts its fee, and pays you the rest. You get closer to full retail value, but you wait for the right buyer, and the final price isn't guaranteed.

Side by side

	Sell outright	Consignment
When you're paid	Within days of accepting	After the car sells and funds clear
Sale price	Fixed in the offer	Retail market, not guaranteed
Fees	None; the margin is in the offer	Commission or flat fee when it sells
Market risk	Dealer's	Yours
Your effort	Minimal	Minimal, plus approving offers
Best for	Speed, certainty, simple exit	Maximum return, flexible timeline

How to compare the numbers

Don't compare the cash offer with the hoped-for retail price. Compare it with your likely net from consignment. Here's a simple way to estimate it:

1. Find what comparable cars actually sold for recently at retail. That's the realistic sale price, not the highest asking price you can find.
2. Subtract the consignment fee, including any minimum or extra charges.
3. Subtract any reconditioning you'd approve to get the car retail-ready.
4. Think about the cost of waiting: loan interest, insurance, and how much the car's value could move in a month or two.

Then put that net figure next to the cash offer. If the gap is small, the certainty of a cash sale usually wins. If the gap is large and you're not in a hurry, consignment is often worth it. On higher-value cars, a percentage-based fee with a reasonable cap or minimum frequently leaves a meaningful gap in the consignor's favor.

When selling outright makes more sense

• You need the money now, or you're buying another car and want a clean exit.
• The car has issues that would be costly to fix before a retail sale.
• The model is softening in value and you'd rather lock in today's number.
• You don't want to field offers or think about the car again.

When consignment makes more sense

• The car is desirable, well documented and in excellent condition.
• You can wait several weeks without carrying costs hurting you.
• The model has strong retail demand but a wide gap between wholesale and retail.
• You want the car presented properly to serious buyers, without hosting strangers at your home.

The real risk with consignment, and how to avoid it

The biggest fear consignors have is simple: the car sells and the seller doesn't get paid on time, or at all. It happens when a dealer mixes consignment money with its operating funds. Protect yourself by getting these answers in writing before you hand over the keys:

• What's the fee, exactly? Percentage, minimum, and every possible extra charge.
• Is anything due upfront? Listing or preparation fees shift risk to you.
• When will I be paid? California law requires payment and a written accounting within 20 days of the sale. Ask whether the dealer pays faster.
• Where are the buyer's funds held? A separate trust account is the standard you want.
• Can I cancel? Find out the notice period and any cancellation fee.
• Who insures the car and how many miles can it be driven?
• How is my loan or lease handled? The dealer should pay your lender directly at closing.

In California, a consignment needs a written agreement on the state's consignment form. If a dealer is vague on any of the points above, keep looking.

What a good consignment looks like day to day

Once you sign, the car should be photographed professionally, with 60 or more images and ideally a walkaround video, and listed with its full VIN, mileage and history. A good dealer brings you every serious offer rather than deciding for you, explains how each compares with recent sales, and tells you when the market is saying the price is too high. Test drives should be accompanied and logged, and you should be able to see the car whenever you like. If the car hasn't sold after a few weeks, expect an honest conversation about price, presentation or timing, not silence. When it does sell, you should receive a written accounting showing the sale price, any lender payoff, the fee and your net, along with your payment.

Our approach

We offer both routes and tell you honestly which one we think fits your car. Our cash offers come back the same day in most cases and stay firm for 7 days. Our consignment terms are published in full: one flat commission quoted in writing, nothing upfront, a 90-day agreement you can cancel with 24 hours' notice, buyer funds held in a separate trust account, and payment within 3 business days after funds clear.

Frequently asked questions