What is a consignment sale?

Consignment means any arrangement in which a vehicle is given to a dealer

  • to allow the dealer to sell the vehicle for the owner
  • under a conditional sale agreement for the purpose of resale by the dealer, or
  • to allow the dealer to display it for sale
What is different about consignment selling?

Consignment sales require a unique relationship of trust between the consumer and the dealer, with great potential for loss to the consumer.  In order to reduce this risk, the Motor Dealer Act and the Motor Dealer Consignment Sales Regulation provide specific legal requirements for the conduct of consignment sales.  They also give the Registrar the authority to determine whether a dealer will be authorized to conduct consignment sales.

Are all dealers permitted to sell on consignment?

No. Every new dealer licence includes a condition prohibiting the dealer from conducting consignment sales.

How does a dealer apply for consignment privileges?

A dealer who wishes to conduct consignment sales must apply to the VSA for consignment privileges.  Any application is then thoroughly reviewed by both the Licensing and Compliance departments before the Registrar decides whether to authorize a dealer to conduct consignment sales. The VSA uses additional reviews, inspections and reporting requirements to monitor the compliance of dealers, and to assess potential risks to the public, before and after granting the right to sell on consignment.

Read our consignment policy here.


What are some of the specific legal requirements?

A dealer who wishes to conduct consignment sales must have separate trust accounts in place, must have an approved consignment agreement and may be required to post a larger Letter of Credit.

Which dealers are currently authorized to sell on consignment?

Consignment dealers can be found using the online dealer search.