How do I tell buyers which lot vehicles are consigned versus owned?

Mixing consigned and owned vehicles in one stock number is the quickest way to lose a buyer’s trust. Build a list of every unit on the lot, with its identification number, who holds title, the date it arrived and the date the agreement started. Check the list against the keys, the paperwork and the vehicles themselves.

For consigned units, attach the signed agreement. Note the terms in plain words: when the consignor gets paid, what the lot may deduct, how long the unit may stay and what happens if it does not sell. Flag any units where money is owing to the consignor, since a buyer will treat that as a liability rather than an asset.

Tell your own lender and, if any vehicles are financed against the stock, show which units are pledged. Decide with your lawyer how consignment agreements will be handled at closing, including whether consignors must be told or must agree to a new owner. Ask your accountant how consigned units should be shown, so they do not inflate the inventory figure. Keep the keys and paperwork for consigned units in a separate place. Update the schedule the week before closing, so it matches what is actually on the lot.

Key takeaways

• List every unit with its title holder, arrival date and agreement date.
• Attach each consignment agreement and flag amounts owing to consignors.
• Refresh the schedule just before closing so it matches the lot.