Auto Consignment Form Template for the United States

An Auto Consignment Form is a legally binding agreement that lets you place your vehicle with a dealership for sale while keeping ownership until the car sells. This arrangement gives you professional sales expertise and dealer facilities without immediately transferring title, which makes it a practical option for selling specialty, classic, or high-value vehicles in the United States.

Where does a consignment form fit in car dealership paperwork?

When a dealer sells a vehicle it owns, the paperwork runs from the sales order through to the bill of sale and title assignment. A consignment sale adds one document at the front of that chain. The Auto Consignment Form is the contract between you and the dealer that authorizes the dealership to market and sell a car it does not own. It sits next to the purchase order the customer signs, the odometer disclosure, the FTC Buyers Guide, and the title paperwork that transfers ownership to the buyer at closing. Because you stay the owner until the sale completes, this form is what gives the dealer the legal right to display the car and to collect payment on your behalf. For a dealer-owned sale instead, see the car dealer bill of sale.

When do you need this document?

You need an Auto Consignment Form when you want to sell your vehicle through a dealership but prefer to retain ownership until a buyer is found. It is particularly useful for classic car owners who want access to specialized dealers, owners of luxury vehicles seeking professional presentation, or anyone who lacks the time to handle a private sale. The form also helps when you want to defer the tax consequences of a sale or keep insurance in place until the vehicle actually sells. Dealerships require this documentation to legally market and sell vehicles they don't own outright, and to keep a clean record of what they are authorized to do.

Key legal considerations

Several terms need to be nailed down in your Auto Consignment Form. The agreement should specify the consignment period, the minimum sale price or reserve amount, and the commission structure. It should set out who bears responsibility for storage, insurance, maintenance, and any damage that occurs while the car is on the dealer's lot. The form must include a detailed vehicle description, known defects, and a condition statement so the dealer can meet FTC Used Car Rule disclosure duties to the buyer. It should also state what happens if the vehicle doesn't sell within the agreed window, including your right to reclaim the car or revise terms. Title retention clauses matter most here, because they protect your ownership while the dealer markets the vehicle.

What should an auto consignment form cover?

A complete form pins down each of these points before the car goes on the retail lot:

• Vehicle details: year, make, model, VIN, mileage, trim, and the stock or inventory number the dealer assigns.
• Reserve price: the minimum you will accept, with the dealer's rights reserved below that figure spelled out.
• Commission: the share of the sale price the dealer keeps and how the balance is calculated.
• Consignment and policy terms: the length of the listing, insurance coverage, and renewal or cancellation rules.
• Contact details: the names, phone number, and email for both the consignor and the dealership.
• Payment and title: how and when proceeds reach you and how title passes to the car buyer at closing.

How does the sale and payment work?

Once a customer agrees to buy, the dealer typically writes up a purchase order or sales contract with the buyer, collects payment, applies any agreed commission, and then remits the balance to you under the consignment terms. If the buyer uses finance, the dealer's system also records the lender details and the credit disclosures that go with them. Many states require those sale proceeds to be held in a separate account until they are paid out, so the agreement should say how and when you receive your money. Title passes from you to the buyer as part of the closing paperwork, and the dealer handles the odometer and transfer documentation. Setting these steps out in writing keeps the handover clean and gives both sides a record of what was sold and for how much.

What should the vehicle description include?

Accurate content in the vehicle description protects everyone. List the year, make, model, VIN, mileage, and trim, along with service history, known defects, and any accident or title-brand information. The clearer this detail, the lower the risk of a dispute after the sale, and the easier it is for the dealer to market the car honestly to buyers shopping the market for that type of vehicle. If you're drafting related documents, the vehicle sale agreement templates cover the direct owner-to-buyer route.

Legal requirements in the United States

Federal and state laws set specific requirements for Auto Consignment Forms. Under the Federal Truth in Lending Act, any financing arrangement must disclose credit terms and costs clearly. The FTC Used Car Rule requires dealers to give buyers a Buyers Guide with condition and warranty information, which your consignment agreement should support. UCC Article 2 governs the sale of goods, including vehicles, and frames how consignment and title transfer work. State motor vehicle dealer licensing laws generally allow only licensed dealers to run consignment sales, and many states have consignment statutes that mandate particular contract provisions, disclosures, and trust-account handling of proceeds. Your agreement must meet state documentation requirements and may need to be filed with the motor vehicle department in some jurisdictions. GenieAI drafts the form against your terms and flags gaps before you sign, so the paperwork is ready to use rather than a draft waiting on review.