Originally Posted by Gary RVRoamer
I'm not clear on why the consignment agent would even be involved from the lendor viewpoint. The title transfer is coming from a private seller, not the consignment dealer. Maybe that's the point - the lender will deal only with the actual seller for vehicle title and payment. Doesn't want to get in the middle of any obligations the seller may have to the sales lot, i.e. commission payment or whatever.
I can only speak from our experience, but this was not the way consignment worked for us. We retained title until the Dealer sold the unit. At this point we transferred ownership to the Dealer who then transferred title to the new owner. This created 3 advantages...
1) The transaction was between the Dealer and the new owner so we were no longer liable for any future problems, promises, warranties or representations made by the Dealer to the new owner.
2) The Dealer was free to make representations or warranties as the owner of the unit.
3) The Dealer was able to arrange financing, accept trades, warranty, etc.....the Dealer simply did not have the $$ cost of carrying the unit until it sold.
I have no idea whether or not the buyer of our MH financed the purchase, but the "advantage" of consignment was that the Dealer could organize financing if needed. As a private seller we were not in a position to offer this service.....nor a variety of "other" things the Dealer could bring to the table.