| There are thousands of used cars for sale on eBay | | | | * The seller is contacted and the inspection is carried |
| everysingle day. In fact, eBay Motors is the most | | | | out |
| profitablesales division on eBay and naturally there are | | | | * The buyer receives a report |
| manyentrepreneurs who are interested in jumping into | | | | * The buyer chooses to go ahead with the purchase - |
| thismarket. For instance, eBay claims it sells an SUV | | | | or not |
| every nineseconds and is the biggest online car dealer | | | | Another choice for the buyer is to deposit his payment |
| in America,exceeding the traditional car companies. In | | | | with |
| fact, there are | | | | and then take delivery of the vehicle. Theseller ships |
| 15 million cars sold over the Internet each year - | | | | the car after he knows the money is secure withthe |
| andgrowing. | | | | escrow company. The seller must provide |
| The recent rapid growth of the consignment business | | | | trackinginformation, which is verified by |
| modelhas made the used car market even more | | | | The buyer has between one and 30 days to |
| enticing. Manysellers are able to sell cars they have | | | | thoroughly inspecthis new purchase (the period is |
| never even seen andwith no more risk than the cost | | | | negotiated between the twoparties ahead of time). If |
| of the auction listing. Somenegotiators even persuade | | | | this time expires and the escrowcompany has not |
| the car owner to pay for the ad,thereby risking no | | | | heard from the buyer, it assumes he is happyand |
| more than their time. | | | | gives the purchase price to the seller. |
| The biggest single issue for this business model is | | | | The buyer may return his vehicle if he isn't happy |
| thetrust of prospective buyers. After all, paying | | | | andsometimes buyers and sellers work out partial |
| thousands ortens of thousands of dollars for a car | | | | paymentagreements, the buyer being satisfied with |
| sight unseen is anawesome leap of faith. Even buying | | | | some parts of thetransaction, but not with others. If a |
| for a plane ticket to gosee a car before paying | | | | dispute arises, it issettled by the American Arbitration |
| causes buyers to be uncomfortable. | | | | Association. |
| The best way sellers can overcome this fear is to use | | | | The fee for this service is: |
| anescrow service. The one chosen by eBay is | | | | * $0 - $7,500 = value of vehicle: $125 |
| Escrow.com, whichhandles eBay auctions in the US | | | | * $7,500.01 to $15,000: $170 |
| and Canada. | | | | * $15,000.01 to $30,000: $200 |
| An escrow service acts as a neutral third party. In | | | | * $30,000.01 to $50,000: $275 |
| anexchange of merchandise, the buyer sends his | | | | * $50,000+ = 6% of the value |
| money to | | | | Once both parties have agreed, the title transfer |
| and the seller ships the product to the buyer. | | | | processbegins and will guarantee this too, for a fee of |
| The buyer usually has two days to inspect his | | | | $95. Title transfers are handled by Centerpoint |
| purchase, andif he is happy, he notifies the excrow | | | | Diversified |
| company who releasesthe money to the seller, minus | | | | Services which works in all 50 states. The fee, |
| its fee. If the buyer isdissatisfied, he returns the | | | | naturally,doesn't include any transfer costs - it is only |
| undamaged merchandise to theseller, and after the | | | | insurancethat the title will be expedited to the |
| seller receives his merchandise back | | | | satisfaction of bothparties. |
| (in satisfactory condition), the escrow company returns | | | | also offers a service that will ship cars |
| thebuyer's money. Thus both sides in the transaction | | | | almostanywhere in the world and will gather an auto |
| areprotected. The buyer almost always pays the fees | | | | history reportto inform sellers if their new chariot has |
| for this,although sometimes buyer and seller split the | | | | been salvaged orstolen, suffered flood or hail damage, |
| cost. | | | | been in a fire oraccident, has had an odometer rollback |
| has created its "Vehicle Services Division"specifically | | | | or has been used as apolice car, a rental or a taxi. |
| for dealing with the used cars, trucks, SUVsand almost | | | | Anyone considering offering used cars for sale on |
| anything else with wheels and a motor. The buyercan | | | | eBay wouldbe well advised to thoroughly learn the |
| have a 160 point inspection performed before agreeing | | | | services availablethrough and offer those to |
| tothe purchase. This is an inexpensive service and | | | | prospective buyers. |
| certainlywill save the buyer any headaches. | | | | The trust factor will skyrocket and your chances |
| * The buyer pays a $125 fee that is non-refundable | | | | ofcompleting sales will dramatically increase. |