Selling an RV can be intimidating; you don’t want to mess up in the process or lose a deal. Not to mention, it takes a lot of time to list your RV, answer inquiries, handle showings, and negotiate with potential buyers—time most of us don’t have! If you want to avoid the hassle of selling your RV yourself, consider RV consignment.
Let’s talk about what the consignment process looks like to see if it’s right for you.
What Is RV Consignment?
RV consignment is when you use a third party to sell your RV for you. Typically, an experienced sales professional will do all the smooth-talking with potential buyers. The consignment company will likely answer all inquiries about your RV, handle all the showings, and even help close the deal with financing. And you just get to collect at the end.
However, it’s important to remember that an RV consignment won’t help you for free. An RV consignment is in business to make money. This means they’ll likely take a commission or percentage of the final sale. Factor these fees into your decision to use a consignment company.
How Does It Work?
When selling your RV on consignment, your RV enters a third party’s custody. They’ll likely estimate a time frame for selling your RV based on the demand they’re seeing. You and the dealer will then agree to how the dealer will collect its fees.
The dealer will advertise and show your RV to prospective buyers, helping to close the deal. Once the salesman has a confirmed offer on your RV, they’ll call and see if you accept.
Once you accept the offer, the dealer will handle all the financing and paperwork to transfer the RV title for you. They’ll then send you money from the sale with their cut already subtracted. It’s relatively easy for you as the seller, but you’ll have to share part of the proceeds.
How Much Does RV Consignment Cost?
The fees associated with RV consignment vary depending on the consigner. There are a couple of different ways your consigner may structure the deal. Don’t sign or agree to anything if you’re uncomfortable with the deal’s structure.
One option is for the consigner to charge a straight percentage fee, typically between 10 to 15% of the total sales price. So when they sell your RV for you, they’ll deduct their percent and send you a check for the remaining amount. Whether this percentage is negotiable or not will vary from one consigner to the next. However, it’s always worth a shot to try to negotiate the best rate possible to keep as much money in your pocket as possible.
You might also have a consigner offer to set a certain sales price. The consigner will then take all the proceeds from the sale that are more than the agreed-upon price. With this structure, you want to make sure the dealer is giving you a fair price and not underselling the value of your RV. This can be a tricky game to play with the recent trends in the RV market.
➡ Not sure how much your RV is worth? Learn How to Determine Used Camper Values.
What Is the RV Consignment Commission Rate?
Typically, an RV consignment commission rate is a percentage between 10% and 15% of the final sale. You’ll agree upon the number before the consigner starts anything.
Once your RV sells, the consigner will subtract their rate and send you whatever remains of the funds. Again, don’t sign anything unless you’re satisfied with the commission rate. Your signature is legally binding, after all.
Are There Any Hidden Fees with RV Consignment?
When you sell your RV through consignment, there should be no hidden fees. However, the consignment company may make a few suggestions that could require money out of your pocket. They might suggest giving the inside and outside of your RV a good cleaning or making some repairs.
Consignment companies typically recommend doing these things to make your RV more appealing to potential buyers. However, you can avoid these fees either by doing all the cleaning and maintenance before bringing your RV for the deal or by simply declining extra work from the consignment company.
Pros
When you choose to use RV consignment, the stress and worry of selling your RV are out of your hands. You’re entrusting your RV to professional sales departments to sell it as quickly as possible and for the highest price. They’re invested in selling your RV and want to get paid just as badly as you want your RV to sell.
Because you’re entrusting the selling of your RV to professionals, you don’t have to sort through inquiries and lowball offers for your RV. This process can be incredibly frustrating and might be reason enough for some to choose RV consignment.
Cons
While there are many positive aspects of selling your RV through consignment, consider a few major cons. RV consignment may not be for you if you don’t like relinquishing control of business transactions. You’re entrusting the consignment company to give accurate information and represent your RV in a manner that’s attractive to potential buyers. Some RV owners don’t want to trust anyone else with this important transaction.
Another major con for many RV owners is that they’re giving away some of their profits. When you’re giving away 10% to 15% of the sale, you might pay the consigner thousands of dollars to handle the transaction. And if you’re upside down on your loan and will be needing to pay off a lien on your RV, consignment might not be an option.
Pro Tip: If your RV is older or in disrepair but has a clear title, consider donating it to a charitable organization instead of selling or consigning it.
What Is RV Consignment Insurance, and Do You Need It?
You may think that you don’t need to consider consignment insurance because you have insurance on your RV. However, you must confirm with your insurance company whether or not your RV’s insurance policy covers your unit while it sits in consignment. Did you know that many insurance policies won’t cover the unit while it sits in consignment?
This means that you’ll need to purchase additional coverage for your RV during this time. While the dealership will likely have some security measures in place, nothing is foolproof. You don’t want to be caught in a situation where your RV is stolen or damaged, and you don’t have sufficient insurance coverage.
Is RV Consignment Worth It?
When it comes to selling your rig, RV consignment can be a fantastic option for some. You’ll have to forfeit some of the profit, but it may be worth it. Not having to deal with people or the stress of juggling multiple potential buyers is reason enough for it to be a great option for many sellers.
Of course, it’s not ideal for those who want more control over the sale of their RV or those who want to pocket every penny of the sale. So, whether or not it’s worth it is up to you!
Have you ever sold your RV via consignment? What was your experience like? Do you have any tips? Drop a comment below.
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