Which option best describes the nature of consignment transactions?

Consignment transactions involve selling items on behalf of another person or owner, where the seller (in this case, the dealer) does not have ownership of the vehicles being sold. Instead, the dealer acts as an agent for the owner of the vehicles, facilitating the sale while typically taking a percentage of the sales price as a commission. This arrangement allows the vehicle owners to leverage the dealer's market access and sales expertise without needing to assume the responsibilities of the sale themselves.

In contrast, temporary leasing, selling owned vehicles directly, or exchanging vehicles between dealers do not accurately capture the essence of consignment, as these options involve different ownership and transactional dynamics. In a consignment, the original owner retains ownership until a sale is consummated, ensuring the process is distinctly defined by the relationship between the owner and the dealer.