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Dealer Consignment Practices

What must a dealer do when taking a vehicle on consignment?


Get proof the consignor is authorized to consign the vehicle.  

A consigning dealer must have proof the consignor is one of the following: 

  • The legal owner of the vehicle according to DMV records
  • An Oregon certified dealer
  • A security interest holder that has completed a vehicle repossession certificate. 
Proof must be an original or copy of one of the following: 
  • The title for the vehicle
  • The registration card
  • An Oregon DMV printout that lists the vehicle and owner information.
  A bill of sale is NOT an ownership document 

If a dealer/consignee takes a consignment from another Oregon dealer, it is the consignee’s responsibility to verify the consignor is a certified dealer. The consignee must keep a copy of the consignor’s current dealer certificate and record of purchasing the vehicle in their records.

Complete a written consignment agreement that includes all of the following: 
  • The VIN of the vehicle being consigned.
  • The terms of the agreement including:
    • What should happen to the proceeds from the sale; and
    • Any stipulations about paying off a current security interest holder.
  • A statement that the consignor may file a complaint with DMV if the terms of the agreement are not met.
  • A statement that the dealer/consignee must not take any part of the money paid in connection with the sale for their fee or commission until the transaction has been completed.
Provide a copy of the consignment agreement to the consignor.

What must a dealer do when they sell a consigned vehicle?
  • Pay the consignor within 10 days of the date of sale. This must be done as outlined in the consignment agreement.
  • Provide the certificate of title to the purchaser or submit an application to DMV to title the vehicle in the purchaser’s name within 30 days of the sale. 
    • Any delay must be due to circumstances beyond the consignee’s control (OAR 735-150-0010). 
  • Provide purchaser with a written disclosure as shown in ORS 822.060(1)(i). For an example, see page 11 of Chapter R of the Title and Registration Handbook.
Title Delivery Requirements ORS (822.042, OAR 735-150-0050)

Preparation and Submission of DMV Documents and Fees 
Once a dealer sells a vehicle, they are required to:
  • Deliver the title or ownership document to the purchaser within 25 calendar days; or
  • Submit an application for title and/or registration to DMV for the customer within 30 calendar days.
Delay Letter 
If the requirements above will not be met, provide a written notice to the purchaser, any security interest holders, and any lessors. This notice must be provided within 25 business days of the date of sale, and must contain: 
  • The specific reason for the delay
  • The anticipated length of the delay
  • A statement of the purchaser’s rights and the remedies available. This statement must contain the right of the purchaser to file a complaint against the dealer with DMV if the delay goes beyond 45 calendar days from the date of sale. 
A sample delay letter is available in .

Records 
Dealers must maintain records that show the delay was beyond their control (OAR 735-150-0010(11)) and that they have made a good faith effort (OAR 735-150-0010(21)) to comply with the requirements above. Keep copies of delay letters sent and document all continued actions to resolve the issue.

Title and Registration Preparation Fees
Dealers may charge a fee for preparing DMV title and registration paperwork for submission to DMV. The fee charged by the dealer must not exceed: 
  • $200 – when submitting without an integrator 
  • $250 – when processing the transaction through an Electronic Vehicle Registration (EVR) integrator 
This fee needs to be listed separately and is not to be shown as a government fee or as part of DMV title and registration fees. Fee amounts that exceed the authorized limits must be promptly refunded to the customer. 

The dealer must inform the purchaser that they are being charged this optional fee. The purchaser can negotiate the processing fee with the dealer and can decline to have their transaction processed using an EVR Integrator. 

If a dealer charges a document processing fee, the dealer is required to submit the transaction to DMV on the purchaser’s behalf. 

DMV Title and Registration fees can be found in Chapter M of the Title and Registration Handbook.