| 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 | | | | outv |
| profitablesales division on eBay and naturally there are | | | | * The buyer receives a reportv |
| 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 | | | | withthe escrow service and then take delivery of the |
| fact, there are | | | | vehicle. |
| 15 million cars sold over the Internet each year - | | | | The seller ships the car after he knows the money |
| andgrowing. | | | | hissecure. The seller must provide tracking information, |
| The recent rapid growth of the consignment business | | | | whichis then verified. |
| 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. eBay has a preferred service, and | | | | * $0 - $7,500 = value of vehicle: $125 |
| it'seasiest to use that one. | | | | * $7,500.01 to $15,000: $170 |
| An escrow service acts as a neutral third party. In | | | | * $15,000.01 to $30,000: $200 |
| anexchange of merchandise, the buyer sends his | | | | * $30,000.01 to $50,000: $275 |
| money to theescrow service and the seller ships the | | | | * $50,000+ = 6% of the value |
| product to thebuyer. The buyer usually has two days | | | | Once both parties have agreed, the title transfer |
| to inspect hispurchase, and if he is happy, he notifies | | | | processbegins and the escrow service will guarantee |
| the escrow companywho releases the money to the | | | | this too, for afee of $95. The fee, naturally, doesn't |
| seller, minus its fee. If thebuyer is dissatisfied, he returns | | | | include any transfercosts - it is only insurance that the |
| the undamaged merchandiseto the seller, and after the | | | | title will beexpedited to the satisfaction of both |
| seller receives his merchandiseback (in satisfactory | | | | parties.eBay's escrow service also offers a service |
| condition), the escrow service returnsthe buyer's | | | | that will shipcars almost anywhere in the world and will |
| money. Thus both sides in the transaction | | | | gather an autohistory report to inform sellers if their |
| areprotected. The buyer almost always pays the fees | | | | new chariot hasbeen salvaged or stolen, suffered |
| for this,although sometimes buyer and seller split the | | | | flood or hail damage, beenin a fire or accident, has had |
| cost.eBay's offers a "Vehicle Services Division" | | | | an odometer rollback or hasbeen used as a police car, |
| specifically fordealing with the used cars, trucks, SUVs | | | | a rental or a taxi. |
| and almost anythingelse with wheels and a motor. The | | | | Anyone considering offering used cars for sale on |
| buyer can request a 160point inspection performed | | | | eBay wouldbe well advised to thoroughly learn the |
| before agreeing to the purchase. | | | | escrow servicesavailable and offer those to |
| This is an inexpensive service and certainly will save | | | | prospective buyers. The trustfactor will skyrocket and |
| thepurchaser many headaches. | | | | your chances of completing saleswill dramatically |
| * The buyer pays a $125 fee that is non-refundable | | | | increase. |