Consignment

Consignment is an arrangement where a vehicle owner allows a third party, such as a dealership or auction company, to sell a vehicle on their behalf while retaining ownership until it is sold.

In fleet management, consignment is often used during vehicle remarketing at the end of a vehicle’s lifecycle. The third party, known as the consignee, manages the sales process, including storage, marketing, inspections, and facilitating the transaction. The original owner, or consignor, keeps legal ownership until the vehicle is sold.

A few key aspects of consignment include:

• Ownership stays with the consignor until the sale is completed
• The consignee handles sales, logistics, and buyer interactions
• Fees are typically structured as a percentage of the final sale price

Consignment can help fleets improve resale outcomes by tapping into established sales channels and market expertise. It can also reduce the internal effort required to sell vehicles, allowing teams to stay focused on day-to-day operations.