In the last few decades, the RV lifestyle has seen a significant rebirth and it’s safe to say that the RV lifestyle appeals to many people throughout the world, whether it’s families searching for an economical, entertaining way to travel or individuals wishing to return to a more fulfilling way of life.
Unfortunately, the modern way of living prevents many RV owners from getting as much use out of their vehicles as they would want. Every year, hundreds of thousands of RVs are left in storage, unused. Storage and maintenance fees add up quickly and might add up to a significant amount of money month after month. If you’re one of those RV owners who doesn’t use your rig as often as you used to because your schedules have changed, RV consignment is one way to save money on maintenance and storage.
What is RV Consignment
RV consignment is when you sign a deal with an RV consignment company who is going to sell the RV for you. The RV consignment company will take care of everything related to the sale like phone calls, appointments, and financial arrangements. Once the RV is sold, the company takes a percentage out of the price.
Many RV owners decide to consign their RV instead of selling it themselves. It’s often because they live in remote locations and don’t want to bother with advertising and showings, some owners opt to consign. When selling your RV through a dealership, you’ll gain more exposure than if you do it yourself because dealerships have more potential buyers and better marketing.
How Much Does It Cost?
Because there are so many elements that influence the rate, RV consignment expenses are difficult to assess. It also depends on the dealership and how their consignment fees are structured.
Usually it’s one of two ways.
Either you and the dealer agree on a target selling price, and the dealer collects the difference as commission, or you and the dealer agree on a set percentage of the sale price, generally between 10% and 15%.
Do You Need Insurance For RV Consignment?
Consignment insurance is understandably confusing for many RV owners. You’d expect that your RV would be insured while it’s on the dealer’s lot because you have insurance on it already. However, insurance companies frequently refuse to cover RVs while they are on consignment so it’s a difficult decision whether or not to get consignment insurance. Although most dealerships have security features like cameras and gated access, you can never be sure. There is still a chance that your RV might get damaged by fire, test drive, or something else and you’ll have to cover the cost if you don’t have consignment insurance.
Pros and Cons Of Consigning Your RV
If you don’t want to deal with the hassle of advertising, fielding enquiries, and exhibiting the RV yourself, consignment is a viable choice. Another good thing about consignment service is that working with a dealer broadens your horizons. Your RV will be seen more often, and you’ll be able to consider purchasers who require financing because the dealer will handle that portion of the transaction. The most important benefit of consignment is that dealers want to sell your RV as quickly as possible so it should sell much faster. If you try to sell your RV alone but you lack motivation to put up ads it may take a long time till you make the sale.
The most significant disadvantage is that you must pay a commission, which means you will not receive as much money as if you sold it yourself. You’ll also have to pay for consignment insurance as well as additional services like cleaning and prepping. Another disadvantage is that you can’t sell your RV on your own while it’s consigned, even if you find a willing buyer. You also won’t be able to utilize your RV while it’s on the market.
If your RV is collecting dust in your driveway, it’s definitely time to do something about it. If you don’t want to handle the sale yourself, consigning an RV is an excellent choice. It is also a significant commitment that needs much planning. You’ll need to find a respectable dealership, acquire a fair market value for your RV, and perform some basic maintenance and cleaning. You also want to make sure you read the consignment conditions thoroughly before you commit to a RV consignment dealer. It’s definitely one of the best things you can do if you are not using your RV as often as you wanted before you bought it so give this idea a serious thought.