Sell on consignment |
You cannot sell a motor vehicle on behalf of a client (on consignment) until they appoint you in writing.
To do this, you must complete PAMD Form 34 - Appointment to act as motor dealer on sale of a motor vehicle on consignment (PDF, 211 KB) and give a signed copy to the client.
This form is a service agreement between you and client, which outlines the rights and obligations of both parties.
The form sets out:
- any limitations or conditions on the agency
- the service being provided
- the commission, fee and expense amounts for these services.
Commission for consignment sales
In 2003, commission rates that motor dealers charged for selling on consignment were deregulated.
Now you and the client can negotiate the commission for selling a vehicle on consignment.
However, a court can penalise you for making a commission higher than you originally negotiated with the client, or keeping a commission if you are unlicensed.
Motor dealers also cannot charge a commission when they have a beneficial interest in a sale.
If a court finds that you have kept or charged an unauthorised commission, you will have to return it to the consumer. You could also be fined $15 000 (for individuals) or $75 000 (for corporations).
Last reviewed 21/11/2011 |
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