It’s hard not to love a classic car. A vintage antique design, carefully loved and maintained for decades by the craft’s enthusiastic owners. The classic car community is large and diverse, and attracts enthusiasts from all walks of life. Classic car deliveries are one way owners can sell a car that no longer brings them happiness. Owners can put money earned through a shipment into their next classic car project. But it’s not always that easy.
At the end of April, economic crime investigators in Orange County, Florida, arrested a father and son duo who owned a classic car shipping company. Police claimed that their company, Just Toys Classic Cars, defrauded its owners of more than $600,000.
Just games? More like a scam
The shipping company “Just Toys” is no longer operating. But when it was open, Michael Dean Smith Sr. and son Michael Smith Jr. received classic cars of all makes, models, and ages. However, some owners have left their cars with Just Toys and have never heard of the company.
WESH in Orlando reports that owners waited longer than they expected word from Just Toys about their dispatch vehicles. When vehicle owners (or perhaps previous owners) contacted the company directly, Smith Sr. or son claimed “the vehicle was sold or about to be sold and asked for more time.” Even People of Determination got a spin on Just Toys. But, even they were given “various excuses as to why they weren’t getting their money”.
The police report claimed that there were 21 vehicles sent by 20 victims. The cars were valued at $614,000. Just Toys Classic Cars closed in December 2019, two months after losing its car dealership license. Both Smith father and son are currently facing fraud and extortion charges.
How do consignment car sales work?
When a vehicle is delivered, the legal owner of the vehicle signs the paperwork with the shipping company, leaves the vehicle at the place of shipment, and allows the company to do the rest of the work. The shipping company is responsible for advertising or networking the vehicle, dealing with potential buyers, and handling the actual sale.
After the sale is completed, the original owner of the car gets the bulk of the sale price. According to Exotic Car Trader, the percentage of car shipping charges compared to the total sales price is usually between five and 15%. Some companies charge a flat fee of $250 to $1,000.
Is selling your car on consignment a good idea?
The Just Toys Classic Cars story isn’t the first example of customers being deceived with false offers. Last year, nearly 50 consumers reported a supercar dealer who sold their cars and kept all the money. In January, a man pleaded guilty to defrauding luxury car owners of more than $1.5 million through the “rental consignment” program.
There are some horror stories about car charging, especially for great vintage classic cars, but they can work if you work with the right people. If you sell a classic car on consignment, you don’t have to do the hard work or heavy lifting yourself. Also, you’ll never have to meet a weirdo in a parking lot to watch or test drive. Finally, you don’t have to worry about transferring the car to its new owner.
The downsides include classic car shipping fees, which can be high and leave you with less profit than you thought. You also risk being deceived like consumers who have been cheated by Just Toys.
Safer ways to sell a classic car
If you want to go the shipping route, there are ways to do it right. Make sure to only work with freight forwarders who have an excellent reputation, and look carefully at the car freight agreement before signing it.
If you are looking for other options, you are in luck. Read MotorBiscuit’s step-by-step guide to selling a classic car to learn the best ways to sell an antique or a one-of-a-kind car to get the most out of it and your peace of mind.
Keep scrolling to read about how the classic car community stays connected.
Related: Classic Car Designer Still Designing Car Art 70 Years Later