Consignment or agent/broker

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What’s the difference between consignment sales and agent/broker? Check out the graphic below to ensure you apply for the correct licence to comply with the Consumer Protection Act and Automotive Business Regulation.

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What’s the difference between consignment vs. agent/broker?

Consignment:

  1. A consumer wants to sell their vehicle but doesn’t want to do all the work, so they contact a consignment business.
  2. That consumer (now known as the consignor) brings it to an automotive business licensed for consignment sales.
  3. The business keeps the vehicle in their inventory and tries to sell it.
  4. The business sells the vehicle, and after taking fees and paying off any liens, gives the consignor the remaining money within 14 days.

Agent/broker:

  1. A consumer wants to buy, lease or sell a vehicle but doesn’t want to do all the work, so they contact an agent/broker.
  2. The agent/broker acts as a liaison and negotiator between the consumer and the automotive business that will sell or lease them a vehicle or buy their vehicle. The agent/broker never holds possession of the vehicle and does not have inventory of their own.
  3. The consumer must finalize the transaction themselves and make payments directly to the business and not to the agent/broker. However, the delivery of payment can be made by the agent/broker if the consumer requests this service.
  4. The agent/broker typically gets paid a fee from the business for connecting the business with the consumer.

Make sure your business holds the correct AMVIC licence. Contact AMVIC’s licensing team at 1-877-979-8100 ext. 2001.