Should You Sell Your Caravan On Consignment

If you’re selling your caravan or motorhome, you’ll probably realise there are two main options. You can sell it yourself, or you can have a licensed dealer sell it on consignment. There are advantages and disadvantages to both and both options will suit different people. We’ll have a look at those pros and cons, but first…

What Is Selling On Consignment?

Selling on consignment means you hand over (consign) your caravan or motorhome to a dealer. They then sell that caravan as part of their normal daily business. For this service they will take a commission from the sale.

A dealer who sells on consignment will often have a host of services that are included as part of the consignment process. For instance, they may want to detail the caravan, do safety and roadworthy checks, Good dealers have minimum requirements for how they present their products and want your caravan to be as good as the others they sell. That would apply to how it presents and (perhaps more importantly) on issues of roadworthiness. When it sells from their yard, it reflects upon their business and they want that to be as good as possible.

Other things a dealer may provide

Your dealer will provide exposure for your caravan or motorhome. They’ll have customers visit their dealership to inspect what is for sale and while doing so will have the opportunity to inspect your caravan or motorhome as well.

A dealer may also be able to provide advertising options for you. They should also have a website on which they can list your caravan or motorhome. They may also provide exposure for your caravan or motorhome through sites such as Caravansales.com.au or similar websites.

Advantages To Selling On Consignment

We’ve mentioned the many things a dealer can provide for you when they sell on consignment. When you’re selling a caravan, detailing your caravan, ensuring roadworthiness and getting the appropriate certificates for sale can be a bit daunting for some. Or perhaps you just can’t be bothered doing all that. Selling on consignment takes all that responsibility out of your hands.

You may have a busy life or responsibilities that make it hard for you to be available to show potential buyers through your caravan. Dealers don’t have those issues.

You may also not want the responsibility for taking phone calls and negotiating prices. Some people love this kind of thing but others find it quite stressful. Selling on consignment takes that process out of your hands and puts it in the hands of people who do it all the time.

Advantages To Selling Privately

The first and most obvious reason for not wanting to sell on consignment is cost. The dealer is providing a service for you and will be compensated for that. You can therefore put more money in your pocket by selling it yourself.

You’re also in control of the selling process. You get to decide how and when your caravan or mororhome is sold. If you want to throw in some extras or give a little ground on something then you decide that in the moment.

There are also many great resources available to you to sell it yourself. As we mentioned earlier, dealers will often list your caravan on sites like ours. So, by selling your caravan or motorhome yourself you can jump the middle-man and list it here!

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Resources For Selling On Consignment

All the information below is generalized in nature and meant as a guide rather than concrete information. State regulations on selling on consignment vary a lot and you should consult with your local authorities. For instance, vehicle consignment sales in Victoria are illegal except in some circumstances such as selling between dealers. 

1. The Agreement

When you’re consigning your caravan to a dealer, that dealer must have a contracted agreement for you to sign. It differs from state-to-state but in general, there will be a state-certified document that both parties have to sign. Please note that only registered dealers are able to sell caravans on consignment.

You should set a reserve price in your agreement so that the dealer knows your lowest selling price. Also, if you have any other special conditions for the sale, put them into the agreement.  

That agreement should outline what commission is payable to the dealer and what other expenses there will be (eg roadworthy inspection and certificate costs, advertising, detailing and repairs). The dealer cannot take a commission on any expenses.  

2. Trust Account

The dealer must put all monies into a trust account, usually a trust account held within the same state as the dealer’s registered address. I trust account is like a piggy bank that puts those monies at arms length from the dealer. They can’t use those monies for operational costs and if they were to unexpectedbly go bankrupt your piggy bank would be safe from creditors or other expenses.  

Any monies they take, including the initial deposit, are put into that trust account. Any monies from the sale of the account must be put into the trust account within one (1) day. The owner of the vehicle must then be paid within fourteen (14) days. As the caravan owner, you are paid the amount of the sale less any commissions and expenses. (Please note these are generalized examples of laws that may differ from state-to-state.)

all monies go into a trust account for consignment sales
3. Resouces & Links For Vehicle Consignment Sales

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