Consignment is the least understood of the three ways to sell a forklift, and for some sellers it is comfortably the best. The dealer takes your machine, markets it through their channels, sells it to their buyer, and pays you a share. You get access to a professional sales operation and a buyer pool you could never reach yourself, without taking the deep discount a dealer applies when they buy outright. What you give up is certainty and speed. This guide covers how consignment actually works, what the terms usually look like, who carries which risk, and when it is the right choice.
Get Free Quotes 👑You retain ownership of the machine while the dealer markets and sells it on your behalf, taking an agreed share of the sale. The truck normally sits on their lot, appears in their inventory, is photographed and described by their people and shown to their buyers. Many dealers who buy equipment outright also offer consignment as an alternative, and the choice between them is usually offered at appraisal. The practical difference is simple: an outright sale converts your truck into money today at a discount, while consignment converts it into more money later, if it sells.
Terms vary widely and are negotiable, which is the single most important thing to know. Arrangements generally take one of three forms: a percentage of the final sale price, a fixed fee per machine, or a floor price where you are guaranteed a minimum and the dealer keeps the upside above it. The floor arrangement is worth asking about specifically because it caps your downside while leaving room above. Ask what happens if the machine does not sell within the term, who sets and who can change the asking price, and whether the dealer can accept an offer without your approval.
This is where consignment agreements differ most and where sellers get surprised. Transport to the dealer lot is commonly the seller cost. Reconditioning, if any is done, may be billed to you, deducted from proceeds, or absorbed by the dealer depending on the agreement. Storage may be free for an agreed period and chargeable after it. Marketing is normally the dealer. Insurance while the machine sits on their lot should be explicitly addressed, because an uninsured truck damaged on someone else lot is an argument nobody wants. Get every one of these in writing before the truck leaves.
You do, mostly, and that is the trade for the higher potential return. You carry the risk that it does not sell, that it sells for less than hoped, and that it takes months. The dealer carries the cost of their time and lot space and earns nothing if it does not move, which is a real incentive alignment in your favour. What matters legally is who holds title and who insures the machine while it sits, and both should be stated in the agreement rather than assumed. Ask directly what happens if the dealer goes out of business while holding your truck.
Consignment wins in specific, identifiable situations. When your machine is desirable, meaning a major brand in a common capacity with good hours, because it will sell and the dealer discount on an outright buyout would be pure loss to you. When it is unusual and needs the right buyer, like a high-capacity truck or an uncommon attachment configuration, because a dealer will not pay much for something they are unsure they can move but will happily sell it for you. And when you are not in a hurry, because time is the currency you are spending.
Take the dealer buyout when speed or certainty matters more than the last few thousand dollars: you need the space now, you need the cash for a replacement, you are closing a facility, or you simply do not want an open-ended arrangement. Also sell outright when the machine is marginal, because a truck that needs work will sit on consignment for months and then sell for little, after which you have paid transport and storage for the privilege. A dealer who offers a straight buyout on a tired machine is doing you a service.
Both are ways of letting someone else find your buyer, and they behave differently. Auction is fast, fully transparent and completely uncertain on price; your machine sells on a specific day for whatever the room decides, which can be well above or well below expectation. Consignment is slower, priced deliberately rather than discovered, and lets you decline a low offer. For a clean, desirable truck consignment generally nets more because it is sold rather than auctioned. For a mixed lot of older equipment, auction usually wins on speed and simplicity.
Eight things, in writing. The split or fee structure. The asking price and who may change it. The term, and what happens at the end of it. Who pays transport in and out. Whether reconditioning is permitted, who authorises it and who pays. Who insures the machine on the lot and for what. When you get paid after a sale, with a specific number of days. And the condition in which the machine is accepted, documented with photographs and the hour meter reading on the day it arrives, so there is no argument later about what you handed over.
You are hiring a sales operation, so judge it as one. How many machines do they move a month and how do they market them. Do they photograph and describe inventory properly, or is the listing three blurry pictures. Do they have a real online presence and reach beyond their own city, since a dealer with nationwide delivery and a national audience will sell your truck faster than a local lot. How long do machines typically sit. And will they tell you honestly what yours is likely to fetch and how long it will take, which is the question that separates a partner from a storage facility.
Get an outright buyout number and a consignment proposal from the same dealer, then the same pair from two others. Compare the buyout against the realistic consignment net, which is the expected sale price minus the split minus transport and any storage. If the gap is small, take the buyout and the certainty. If the gap is large and you can wait, consign. And if no dealer will quote you a realistic consignment net with a timeframe attached, that is itself the answer about how saleable your machine is.
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You keep ownership while a dealer markets and sells the machine on your behalf for an agreed share. The truck usually sits on their lot in their inventory. You reach their buyers without taking the discount a dealer applies when buying outright.
Terms vary and are negotiable. Arrangements are usually a percentage of the sale, a fixed fee, or a guaranteed floor price with the dealer keeping the upside. Ask specifically about the floor arrangement, since it caps your downside while leaving room above it.
Transport to the lot is commonly the seller. Reconditioning may be billed to you, deducted from proceeds or absorbed. Storage is often free for a period then chargeable. Insurance while it sits should be stated explicitly. Get all of it in writing first.
It nets more when your machine is desirable, or unusual and needs the right buyer, and when you are not in a hurry. Sell outright when speed or certainty matters more, or when the machine is marginal and would sit for months before selling cheaply anyway.
Auction is fast, transparent and uncertain on price. Consignment is slower, deliberately priced, and lets you decline a low offer. A clean desirable truck generally nets more on consignment. A mixed lot of older equipment usually does better at auction.
The split, the asking price and who may change it, the term and what happens at its end, who pays transport both ways, whether reconditioning is allowed and who pays, who insures it on the lot, payment timing after sale, and documented condition on arrival.