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