Jeffersonville, OH | WLC - 9/14/2024 10:49
Chris, some of our dealers will put our old equipment, if we don’t like the trade value, on their lot and sell it on commission. Think it was 3 percent
Is there a “gotcha” to this? I never have done it because i could see some holes (i think).
Gotcha? Not really, but there are some things to make it messy...
They have it on the lot on consignment...someone calls, has a trade...well, they didn't want your trade, why would they want that one? Do they call you and ask if you want the trade, do they just tell the guy no, what happens? Again, depends on the dealer.
We do consignment sales as well, normally something they no longer need, because we'll trade for ANYTHING...try not to do titles, but we will...we've traded for an airplane before. So, in those cases, if someone has a trade, we'll normally trade for it and pay the customer his price less commission, and then we're on the hook for the rest...or, if the customer has a relationship with us, and they don't want the money for one reason or another, we pay what we collected, and then settle up when we sell the trade.
All depends on the deal, the unit, and the customers involved.
So, no real Gotcha, they are making a commission, still risk involved for the dealer if something happens to the unit, then it gets messy with "well we just sold it for him!" But, as far as money involved, they're not making 20% extra somewhere on you
Chris |
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