🎁 Pay yearly, get 2 months free
Docs / Car Dealership / Consignment and brokerage: earning without buying

Consignment and brokerage: earning without buying

Not all of a showroom's income comes from selling cars it owns. Two routes earn a commission without you paying for a vehicle, and the difference is whether the car enters your showroom at all.

Sale on commission (consignment)

Image 1 — the consignment screen.

An owner leaves their vehicle with you to sell on their behalf. The car is recorded with ownership type "sale on commission" — and that is a requirement: the system refuses to attach a consignment agreement to a vehicle that has a purchase deal, because a purchased car is yours, not someone else's.

What the agreement sets

  • The owner and the agreement's start and end dates.
  • The commission: a percentage of the sale price or a fixed amount.
  • The minimum price: the least the owner will accept, so you cannot sell below it.

When it sells

An ordinary sales deal is recorded, then the system works out the owner's share (sale price less your commission) and lets you record a payment to them. The vehicle never counts towards your stock value at any stage, because it is not yours — which is what keeps the stock report honest.

If the term ends without a sale, the vehicle is returned to its owner and the agreement closes.

Brokerage

Image 2 — the brokerage deals screen.

Here the vehicle never enters your showroom at all. You bring a seller and a buyer together and take a commission. The deal is recorded with the car's description and VIN, both parties and the sale price, then:

  • you set the commission as a percentage or an amount;
  • and you set who pays it: the seller, the buyer, or both.

On collection the revenue entry posts and the deal appears in your reports. Because the car is not in your stock, there is nothing to record, photograph or publish.

Which one is it?

If the vehicle will sit in your showroom where visitors see it, it is a consignment. If your role is calls and introductions without ever holding the car, it is brokerage.

Screenshots

Image 1 — the consignment screen
Figure 1 — Image 1 — the consignment screen
Image 2 — the brokerage deals screen
Figure 2 — Image 2 — the brokerage deals screen

Try what you just read on your own data

Open a free 7-day trial — no credit card, with your own company link in minutes.