Buyers Get a Fresh Alternative to Dealerships and Private-Party Sales
Posted on Tue, Aug 02, 2011
CarLotz, a used car dealership in Chesterfield County, VA sells vehicles on consignment. For used car shoppers, this business model combines the security of buying a car from a licensed dealer with an established place of business, with the personal touch and potential cost savings of buying from a private party.
All vehicles accepted for consignment are professionally inspected and cleaned, and run through a complete title check. The dealer gets paid a fixed fee by the car seller, so there's no incentive for the dealership to "upsell" a more-expensive car. In return, the dealership facilitates the sale, ensuring a smooth transaction for both buyer and seller.
Although the consignment model means the dealership doesn't take title to the vehicles on its lot, as a licensed used car dealership it must still comply with the laws and restrictions governing other dealerships. And, like any other legitimate business, it needs satisfied customers in order to remain in business. In fact, because the buyer is essentially buying a car from its previous owner, albeit through a middleman, there's greater opportunity for an exchange of information about the history of the car, including how it was driven and maintained.
This is an interesting development in the used car market, and one that could help take a bite out of curbstoning.