Chapter 2 General Information — Licensees
2.020 Consignments (CVC §266)
A consignment is an arrangement under which a dealer agrees to accept possession of a vehicle of a type required to be registered under the California Vehicle Code from an owner of record for the purpose of selling the vehicle and to pay the owner of record or the owner’s designee from the proceeds of the sale.
Consignment does not include wholesale vehicle sales at a licensed auto auction.
“Owner” does not include any person licensed as a dealer, manufacturer, manufacturer branch, distributor, or distributor branch.
Consignment Agreements Required (CVC §11729)
Dealers must execute a consignment agreement containing all of the terms, phrases, conditions, and disclosures as shown in CVC §11730 and signed by both the consignor and the consignee.
Failure to comply with the terms of the agreement or to pay the agreed amount to the consignor (or designee) within 20 days after the date of sale is cause for suspension or revocation of the dealer’s license (CVC §11705 (a)(10)).
Report of Sale Required
The selling dealer must complete a Report of Sale–Used Vehicle (REG 51) and the transfer documents as usual when the vehicle is sold.