Nick, I'm still doing my homework on consignment dealers but look at what I found. Good thing your friend didn't get stung.
This scam was reported by CBS Denver on June 15, 2011
Englewood, Colorado - A local car dealer selling vehicles through consignment is being accused of ripping off owners and buyers. Here's what happened. A local man consigned his car with a dealer in Englewood who agreed to sell his car on consignment for him. After the seller's contract was up in 30 days he went back to the dealership and all he found was an empty lot. His car was gone with all the other cars.
The owner was left holding the title with no car and no money.
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