Getting to Know about Consignment

Nowadays, people can sell cars through various platforms, including auction house. They can consign their assets to the auction house. Keeping up with the times, consigning now can be done digitally.

Consignment is a process where individuals or companies transfer their assets to the auction house to be sold. The assets can be vehicles and gadgets in bulk or in units. This process is usually done together with the inspection or checking of vehicle documents.

One can get benefits by consigning to auction house; one of them is that the car can be sold faster than if it is sold through ads in marketplaces in which one has to wait until someone is interested. "This is because auctions will definitely have bidders, and auctions are also held quite often," Kompas.com write (Desember 7, 2018).

Moreover, it is guaranteed to be safer compared to sale through ads in print or online media. In the case of consignment, the data can only be accessed by the auction house and potential buyers who are already registered in the auction house.

"Consignment to the auction house is certainly more beneficial, because you transfer unwanted risks to another party," Tribunnews.com wrote (January 4, 2017).

Transparency is the main key in consignment. Consignors do not have to worry about the vehicles or other assets consigned to the auction house before the negotiation. They can recheck the car's condition and monitor the process since the asset is moved into the auction house until it is auctioned and the sale is completed.

The auction can be done conventionally, which is face-to-face in the auction house or through application. For the latter, consignors or potential buyers can monitor the cars' condition and the auction proceedings through their gadgets.

One of the auction houses that facilitate online consignment is IBID—a subsidiary of PT Serasi Autoraya (SERA)—that accepts objects such as vehicles, gadgets, and heavy equipment. To consign an object, consignor only needs to fill out their data such as name, e-mail address, and password on the website.

The process of filling out personal information, including bank account number, is also done on the website. "Consignor can choose which object they want to consign and the date for the inspection of the car that will be auctioned," as quoted from www.ibid.astra.co.id.

The requirements for consignment are simple. For individuals, they have to bring the vehicle they want to consign and its documents to the location. Then, consignor must sign the consignment agreement, power of attorney, and statement letter.

Before entering the auction process, the auction house will perform an inspection to know the condition of the object to be auctioned, from its interior, engine, to the chassis. Each auction house has different time span of the inspection. In the case of IBID, it will give the inspection result and recommended price to help the consignor determine the reserve price on the same day.

After the inspection is finished, consignor will receive the inspection report and recommended price through e-mail. Then, they can put in the reserve price in their account on IBID’s website by choosing the menu "harga dasar" (reserve price) in the account management page.

According to the principle of transparency, the whole transaction process of consignment in IBID can be monitored through the menu "transaksi" (transaction) on IBID’s website. Consignor will receive the proceeds of the sale seven days after the auction.

If the object is not sold, consignor can take it back one day after the auction at the latest. They will have to pay a fee of Rp250,000/vehicle for management of the vehicle in the location. If the vehicle is not taken back one day after the auction, consignor will have to pay a parking fee of Rp 100,000/vehicle/day, and all the damage and loss will be fully borne by the consignor.

If the vehicle that is supposedly bought is not paid off by the auction winner by the determined time, consignor will receive 50% of the auction participant number (NPL) fee paid by the auction winner.

Not only beneficial for consignors, auctions are also beneficial for those who are looking for used cars with affordable prices and high quality. Balai Lelang IBID Chief Operation Officer Daddy Doxa Manurung said that sometimes people consign cars to the auction house because of bad debt or lack of time to sell cars one by one.

IBID routinely holds auctions every week in more than 10 big cities and has now covered more than 30 cities in Indonesia. Until the end of 2016, around 27,000 four-wheel vehicles had been sold through more than 500 auctions every year.

Please check this page to find out more about IBID's services.