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Auto Consignment Agreement for Germany

Auto Consignment Agreement Template for Germany

This document establishes a legal framework under German law for the consignment of vehicles between owners and authorized dealers. It outlines the terms and conditions under which dealers can take possession of and sell vehicles on behalf of owners, including commission structures, responsibilities for vehicle care, insurance requirements, and sales procedures. The agreement complies with German commercial law (HGB) and vehicle regulations while protecting both parties' interests in the consignment relationship. It includes specific provisions for vehicle handling, pricing mechanisms, and risk allocation in accordance with German legal requirements.

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What is a Auto Consignment Agreement?

The Auto Consignment Agreement is essential for businesses operating in the German automotive market where vehicle owners wish to sell their vehicles through professional dealers without transferring ownership until sale. This document is particularly relevant in situations involving high-value vehicles, classic cars, or when owners prefer professional handling of the sales process. The agreement must comply with German commercial law (Handelsgesetzbuch), vehicle regulations, and consumer protection requirements. It typically includes comprehensive details about vehicle handling, commission structures, insurance requirements, and sales procedures, while ensuring compliance with German anti-money laundering regulations and data protection laws. The document serves as a crucial tool for establishing clear responsibilities and protecting both parties' interests throughout the consignment period.

What sections should be included in a Auto Consignment Agreement?

1. Parties: Identification of the consignor (vehicle owner) and consignee (dealer), including full legal names, addresses, and business registration details

2. Background: Brief context explaining the purpose of the agreement and the parties' intentions regarding the consignment arrangement

3. Definitions: Key terms used throughout the agreement, including technical and legal terminology specific to vehicle consignment

4. Appointment and Scope: Details of the consignment appointment, scope of authority, and exclusivity terms if applicable

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Consignment Process: Procedures for vehicle handover, documentation requirements, and condition assessment

7. Pricing and Commission: Structure of pricing, commission rates, and payment terms including minimum sale price requirements

8. Responsibilities of Consignor: Obligations of the vehicle owner including provision of documentation and warranties regarding vehicle ownership

9. Responsibilities of Consignee: Dealer's obligations including vehicle maintenance, marketing, showing vehicles, and sales process

10. Vehicle Care and Insurance: Requirements for vehicle storage, maintenance, and insurance coverage during consignment

11. Risk and Liability: Allocation of risks and responsibilities for damage, loss, or claims during the consignment period

12. Compliance: Obligations regarding regulatory compliance, including vehicle registration, anti-money laundering, and data protection

13. Dispute Resolution: Procedures for handling disputes, including jurisdiction and applicable law

14. General Provisions: Standard contractual clauses including notices, amendments, and severability

What sections are optional to include in a Auto Consignment Agreement?

1. Marketing and Advertising: Specific terms regarding marketing efforts and advertising responsibilities - include when marketing arrangements need detailed specification

2. Multiple Vehicle Provisions: Additional terms for handling multiple vehicles under consignment - include when dealing with fleet owners or multiple vehicle consignments

3. International Sales: Provisions for international buyers and cross-border sales - include when dealer has international operations

4. Digital Services: Terms regarding online listings and digital sales platforms - include when specific digital services are part of the arrangement

5. Restoration Services: Terms for any restoration or repair services offered - include when dealer provides vehicle improvement services

6. Exclusivity Provisions: Detailed terms regarding territorial or platform exclusivity - include when exclusive rights are granted

7. Financing Options: Terms regarding financing arrangements for potential buyers - include when dealer offers financing services

What schedules should be included in a Auto Consignment Agreement?

1. Schedule 1 - Vehicle Details: Comprehensive description of the consigned vehicle(s) including specifications, condition reports, and photographs

2. Schedule 2 - Pricing Structure: Detailed breakdown of pricing parameters, commission rates, and payment terms

3. Schedule 3 - Required Documentation: List of required documents for vehicle consignment and sale

4. Schedule 4 - Operating Procedures: Detailed procedures for vehicle handling, showing, and sales process

5. Schedule 5 - Insurance Requirements: Specific insurance requirements and coverage details

6. Appendix A - Condition Report Template: Standard template for vehicle condition assessment

7. Appendix B - Handover Checklist: Checklist for vehicle handover process and required documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Ƶ

Sector

Sales

Cost

Free to use

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