CarLotz: Selling Cars on Consignment

CHESTERFIELD, VA (WWBT) - There's a new business in Chesterfield that wants to sell your car. They say they can usually get customers more money than selling it on their own or through a dealership. CarLotz is selling cars on consignment.

Bob Fitch needed to sell his father's car after he died, but didn't have the time to list and sell it on his own.

"It's a hassle to deal with a buyer, trying to find time. I'm a busy man, I'm a financial planner, I'm really busy," he said.

Instead he paid a fee to CarLotz, which sold it in just a few weeks.

Michael Bor got the idea to sell cars on consignment while driving around town.

"You'd see a ton of cars for sale by owner, parked in a spot where people think there's a lot of traffic. We just thought there's got to be a better way to do this," described Bor.

Customers pay CarLotz $199 to have their cars cleaned, checked by a mechanic, and listed, and another $599 when it's sold. It's the same fees whether the car is an old clunker or a newer sports car.

If the car needs a repair, CarLotz will arrange for the repair and take the cost out of your final sales proceeds.

"All of our cars go on every listing service that exists, Auto Trader,, Craigslist, Yahoo, MSN, Kelly, Edmonds," said Bor.

Bor says cars usually sell in anywhere from a few days to a few weeks.

"The buyers are buying a car that would retail somewhere else for several thousand dollars more. The seller is getting several thousand dollars more than if they took it to a dealer," he said.

Because CarLotz sells on consignment, the business doesn't have to front the cost of buying cars. But they offer financing and warranties to buyers.

Fitch told us, "Within a few weeks, I had a check netted out for significantly more than I would have gotten had I gone through a dealer," saying the service saved him both time and money.

The CarLotz lot on Midlothian Turnpike opened in June and is selling about 40 cars a month.

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