By Russ and Tiña De Maris
How consignment selling works
You and the consignment operator agree on a sale price. From there, the dealer keeps anything above your minimum. The dealer may also require a “commission” or percentage fee of your “bottom line price.” You ask $50,000, the dealer keeps a percentage of the $50,000—above what he sells the rig for. He may also require a “dealer fee” of a set amount.
Here’s how this might work out
Your asking price: $50,000
Dealer sells the RV for: $70,000
Dealer commission percentage (10%): $5,000 (based on your asking price)
Fee charged by Dealer: $100
Bottom line: Dealer gets $25,100; you get $44,900
No matter your “asking” price, the dealer will probably tell you it’s too high, that you’ll need to lower it. You can counter by doing your homework before bargaining. Check out internet prices and NADA guides; walk RV dealer lots for a similar rig and try to establish a fair price. It’s subjective: We all tend to figure our “stuff” is worth more than the next guy’s. And watch out for crooks. “Fly by nights” are known to take RVs on consignment, sell them, take the cash and vanish. Before you consign, check with the Better Business Bureau and your state’s Attorney General for complaints.
Another shady trick
They have a buyer for your rig! But (“sigh”) the customer is offering the exact price that you want to walk away with. However, if you’d be willing to give us X dollars for our trouble, we’ll waive the commission percentage. No, you won’t get your exact asking price. But, hey, you’ve still sold that rig! The trick is, the customer came in with a good offer, above your asking price. The dealer is selling you a fish story to pad his pocket. Either refuse to buy his story—don’t budge on your sales price—or tell the dealer you’ll come look at his “customer’s” signed purchase offer. If he refuses to show the offer, you know there’s a problem. If it’s legitimate, you’ll need to decide whether the deal is worth it to you.
EDITOR’S NOTE: Recommended consignment dealer: PPL motorhomes.
##RVDT1789
Somehow I wouldn’t think it was a great idea to tow my TT from TN to TX to sell it, a suggestion would be to research different areas of the country for reputable dealers before publishing your article.
I do not know about RV Consignment, but I have worked in a clothing consignment store. Every thirty days, the price goes down, so does the commission. You are allowed to return to the store to pick up your clothing during the contract period for a fee. At the end of the period, if your clothing doesn’t sell, you are required to pick up your clothing. If you don’t , your clothing belongs to the store, you get nothing. The store will try to sell it or store it, but eventually, The store calls Goodwill.