| There are thousands of used cars for sale on eBay | | | | any headaches. |
| every single day. In fact, eBay Motors is the most | | | | * The buyer pays a $125 fee that is non-refundable * |
| profitable sales division on eBay and naturally there | | | | The seller is contacted and the inspection is carried |
| are many entrepreneurs who are interested in | | | | out * The buyer receives a report * The buyer |
| jumping into this market. For instance, eBay claims it | | | | chooses to go ahead with the purchase - or not |
| sells an SUV every nine seconds and is the biggest | | | | Another choice for the buyer is to deposit his |
| online car dealer in America, exceeding the traditional | | | | payment with and then take delivery of the vehicle. |
| car companies. In fact, there are 15 million cars sold | | | | The seller ships the car after he knows the money is |
| over the Internet each year - and growing. | | | | secure with the escrow company. The seller must |
| The recent rapid growth of the consignment business | | | | provide tracking information, which is verified by |
| model has made the used car market even more | | | | The buyer has between one and 30 days to |
| enticing. Many sellers are able to sell cars they have | | | | thoroughly inspect his new purchase (the period is |
| never even seen and with no more risk than the | | | | negotiated between the two parties ahead of time). |
| cost of the auction listing. Some negotiators even | | | | If this time expires and the escrow company has not |
| persuade the car owner to pay for the ad, thereby | | | | heard from the buyer, it assumes he is happy and |
| risking no more than their time. | | | | gives the purchase price to the seller. |
| The biggest single issue for this business model is the | | | | The buyer may return his vehicle if he isn't happy and |
| trust of prospective buyers. After all, paying | | | | sometimes buyers and sellers work out partial |
| thousands or tens of thousands of dollars for a car | | | | payment agreements, the buyer being satisfied with |
| sight unseen is an awesome leap of faith. Even | | | | some parts of the transaction, but not with others. If |
| buying for a plane ticket to go see a car before | | | | a dispute arises, it is settled by the American |
| paying causes buyers to be uncomfortable. | | | | Arbitration Association. |
| The best way sellers can overcome this fear is to | | | | The fee for this service is: |
| use an escrow service. The one chosen by eBay is | | | | * $0 - $7,500 = value of vehicle: $125 * $7,500.01 to |
| Escrow.com, which handles eBay auctions in the US | | | | $15,000: $170 * $15,000.01 to $30,000: $200 * |
| and Canada. | | | | $30,000.01 to $50,000: $275 * $50,000+ = 6% of the |
| An escrow service acts as a neutral third party. In an | | | | value |
| exchange of merchandise, the buyer sends his | | | | Once both parties have agreed, the title transfer |
| money to and the seller ships the product to the | | | | process begins and will guarantee this too, for a fee |
| buyer. The buyer usually has two days to inspect his | | | | of $95. Title transfers are handled by Centerpoint |
| purchase, and if he is happy, he notifies the excrow | | | | Diversified Services which works in all 50 states. The |
| company who releases the money to the seller, | | | | fee, naturally, doesn't include any transfer costs - it is |
| minus its fee. If the buyer is dissatisfied, he returns | | | | only insurance that the title will be expedited to the |
| the undamaged merchandise to the seller, and after | | | | satisfaction of both parties. |
| the seller receives his merchandise back (in | | | | also offers a service that will ship cars almost |
| satisfactory condition), the escrow company returns | | | | anywhere in the world and will gather an auto history |
| the buyer's money. Thus both sides in the transaction | | | | report to inform sellers if their new chariot has been |
| are protected. The buyer almost always pays the | | | | salvaged or stolen, suffered flood or hail damage, |
| fees for this, although sometimes buyer and seller | | | | been in a fire or accident, has had an odometer |
| split the cost. | | | | rollback or has been used as a police car, a rental or |
| has created its "Vehicle Services Division" specifically | | | | a taxi. |
| for dealing with the used cars, trucks, SUVs and | | | | Anyone considering offering used cars for sale on |
| almost anything else with wheels and a motor. The | | | | eBay would be well advised to thoroughly learn the |
| buyer can have a 160 point inspection performed | | | | services available through and offer those to |
| before agreeing to the purchase. This is an | | | | prospective buyers. |
| inexpensive service and certainly will save the buyer | | | | |