Search
Related Links
Used Cars For Sale On eBay
The recent rapid growth of the consignment business model has
made the used car market even more enticing. Many sellers are
able to sell cars they have never even seen and with no more
risk than the cost of the auction listing. Some negotiators even
persuade the car owner to pay for the ad, thereby risking no
more than their time.
The biggest single issue for this business model is the trust of
prospective buyers. After all, paying thousands or tens of
thousands of dollars for a car sight unseen is an awesome leap
of faith. Even buying for a plane ticket to go see a car before
paying causes buyers to be uncomfortable.
The best way sellers can overcome this fear is to use an escrow
service. eBay has a preferred service, and it's easiest to use
that one.
An escrow service acts as a neutral third party. In an exchange
of merchandise, the buyer sends his money to the escrow service
and the seller ships the product to the buyer. The buyer usually
has two days to inspect his purchase, and if he is happy, he
notifies the escrow company who releases the money to the
seller, minus its fee. If the buyer is dissatisfied, he returns
the undamaged merchandise to the seller, and after the seller
receives his merchandise back (in satisfactory condition), the
escrow service returns the buyer's money. Thus both sides in the
transaction are protected. The buyer almost always pays the fees
for this, although sometimes buyer and seller split the cost.
eBay's offers a "Vehicle Services Division" specifically for
dealing with the used cars, trucks, SUVs and almost anything
else with wheels and a motor. The buyer can request a 160 point
inspection performed before agreeing to the purchase. This is an
inexpensive service and certainly will save the purchaser many
headaches.
* The buyer pays a $125 fee that is non-refundable * The seller
is contacted and the inspection is carried out * The buyer
receives a report * The buyer chooses to go ahead with the
purchase - or not
Another choice for the buyer is to deposit his payment with the
escrow service and then take delivery of the vehicle. The seller
ships the car after he knows the money his secure. The seller
must provide tracking information, which is then verified.
The buyer has between one and 30 days to thoroughly inspect his
new purchase (the period is negotiated between the two parties
ahead of time). If this time expires and the escrow company has
not heard from the buyer, it assumes he is happy and gives the
purchase price to the seller.
The buyer may return his vehicle if he isn't happy and sometimes
buyers and sellers work out partial payment agreements, the
buyer being satisfied with some parts of the transaction, but
not with others. If a dispute arises, it is settled by the
American Arbitration Association.
The fee for this service is:
* $0 - $7,500 = value of vehicle: $125 * $7,500.01 to $15,000:
$170 * $15,000.01 to $30,000: $200 * $30,000.01 to $50,000:
$275 * $50,000+ = 6% of the value
Once both parties have agreed, the title transfer process begins
and the escrow service will guarantee this too, for a fee of
$95. The fee, naturally, doesn't include any transfer costs - it
is only insurance that the title will be expedited to the
satisfaction of both parties.
eBay's escrow service also offers a service that will ship cars
almost anywhere in the world and will gather an auto history
report to inform sellers if their new chariot has been salvaged
or stolen, suffered flood or hail damage, been in a fire or
accident, has had an odometer rollback or has been used as a
police car, a rental or a taxi.
Anyone considering offering used cars for sale on eBay would be
well advised to thoroughly learn the escrow services available
and offer those to prospective buyers. The trust factor will
skyrocket and your chances of completing sales will dramatically
increase.
About the author:
Learn how to sell on
eBay with 16 hours of online instruction taught by a 10
year eBay veteran. Own an eBay business instead of an eBay
hobby.