6.2 Consignment Agreement Key Terms
- The consignment agreement must include, among other things,
- Commitment to provide the consignor (the selling owner) a written
accounting (supported by receipts) of the disposition of the sale proceeds,
and to provide the remaining sale proceeds to the consignor within 20
days of the sale date. Failure to do so may result in suspension or revocation
of the dealer's license.
- A "sale" occurs upon the consignee (the dealer)
receiving the purchase price, or its equivalent, executing
a conditional sales contract, or when the consumer takes delivery
of the vehicle- whichever occurs first.
- Current market value of the vehicle being sold, and the objective
source where that information came from (i.e. Kelley Blue Book, NADA,
- List of outstanding liens and the lienholders.
- Repairs to be made.
- Amount due the consignor upon sale, either as a percentage
of the sale price, a net fee, or as a flat fee. [V.C. §117.30]