What is Consignment?

Consignment is the act of consigning, which is placing something (in this case, a used automobile) in the hands of a third party who will attempt to make a sale.
You retain ownership of the car until it is actually sold.
PREPARE YOUR CAR FOR SALE
Consignment's recent popularity has made the used car marketplace even more dynamic. Sellers can now offer cars they've never even seen, and with no more risk than the cost of the auction listing. Some negotiators even persuade the car owner to pay for the ad, thereby risking a time investment only.
Don't be afraid to ask a consignment dealer for references from previous clients, as well as from those who have purchased the type of car you have.
Never give up the actual title to the car. If the consignor demands to have the title, double-check his credentials and ask him to accept a photocopy of the original title (some states may require you to give the dealer your title.) Prior to giving your car to a dealer, take photos of it; any claims of damage or abuse will be put to rest with such evidence.
Be sure you clearly understand all details regarding listing fees, commissions and the reimbursement of promotional expenses you may be liable for.