When an individual signs a contract with a dealer for the dealer to sell his car, this is called a "consignment agreement". State law defines consignors (seller) and consignees (dealer) rights and requires consignees to make full disclosure when a consigned vehicle is sold. The law also requires a written consignment agreement be executed between the consignor and consignee before the consigned vehicle can be driven.
This agreement must indicate the party responsible for damage to or misuse of the vehicle. It must also indicate the permitted uses a consignee may make of a consigned vehicle. The law also requires a Consignment Charges Agreement be completed and attached to the written consignment agreement. Form TC-120 "Consignment Charges Agreement For Motor Vehicle Sales" can be used for this.
Yes. As long as the consignor has notified the consignee in writing that he is going to take possession of the vehicle; and he has paid all outstanding charges owing to the consignee that have been agreed to on Form TC-120.
Yes. The dealer must disclose, in writing, the exact selling price of the consigned vehicle if the dealer and the consignor agreed in writing that the consigner will receive a percentage of the selling price, or they renegotiate in writing the selling price of the vehicle.
The consignor must be paid within 21 calendar days of the sale or within 15 calendar days of receiving payment for the vehicle, whichever date is earlier, unless the sale is rescinded.
Yes. The dealer must notify the consignor in writing within five calendar days.
No. The dealer must remove the consignor's license plates and/or any temporary permits on the vehicle. It can only be operated on using dealer plates.
The dealer is required to have liability insurance on his dealer plates. The written consignment agreement must specify who is responsible for damage or misuse to the consigned vehicle.
Under Utah law, a "dealer" is defined as a person:
A dealer is also a representative or consignee of any dealer, meaning that if a person sells cars on behalf of a dealer, that person is also a dealer and must be licensed.
Click here for more information on dealer licensing requirements.