| eBay is the biggest online car seller in the | | | | |
| world and thousands want to cash in on this | | | | * The buyer pays a $125 fee that is |
| success. Here's how to improve your odds of | | | | non-refundable* The seller is contacted and |
| selling cars. | | | | the inspection is carried out* The buyer |
| | | | receives a report* The buyer chooses to go |
| There are thousands of used cars for sale on | | | | ahead with the purchase - or not |
| eBay everysingle day. In fact, eBay Motors | | | | |
| is the most profitablesales division on eBay | | | | Another choice for the buyer is to deposit |
| and naturally there are manyentrepreneurs who | | | | his payment and then take delivery of the |
| are interested in jumping into thismarket. | | | | vehicle. Theseller ships the car after he |
| For instance, eBay claims it sells an SUV | | | | knows the money is secure withthe escrow |
| every nineseconds and is the biggest online | | | | company. The seller must provide |
| car dealer in America,exceeding the | | | | trackinginformation, which is verified by |
| traditional car companies. In fact, there | | | | |
| are15 million cars sold over the Internet | | | | The buyer has between one and 30 days to |
| each year - andgrowing. | | | | thoroughly inspecthis new purchase (the |
| | | | period is negotiated between the twoparties |
| The recent rapid growth of the consignment | | | | ahead of time). If this time expires and the |
| business modelhas made the used car market | | | | escrowcompany has not heard from the buyer, |
| even more enticing. Manysellers are able to | | | | it assumes he is happyand gives the purchase |
| sell cars they have never even seen andwith | | | | price to the seller. |
| no more risk than the cost of the auction | | | | |
| listing. Somenegotiators even persuade the | | | | The buyer may return his vehicle if he isn't |
| car owner to pay for the ad,thereby risking | | | | happy andsometimes buyers and sellers work |
| no more than their time. | | | | out partial paymentagreements, the buyer |
| | | | being satisfied with some parts of |
| The biggest single issue for this business | | | | thetransaction, but not with others. If a |
| model is thetrust of prospective buyers. | | | | dispute arises, it issettled by the American |
| After all, paying thousands ortens of | | | | Arbitration Association. |
| thousands of dollars for a car sight unseen | | | | |
| is anawesome leap of faith. Even buying for a | | | | The fee for this service is: |
| plane ticket to gosee a car before paying | | | | |
| causes buyers to be uncomfortable. | | | | * $0 - $7,500 = value of vehicle: $125* |
| | | | $7,500.01 to $15,000: $170* $15,000.01 to |
| The best way sellers can overcome this fear | | | | $30,000: $200* $30,000.01 to $50,000: $275* |
| is to use anescrow service. The one chosen by | | | | $50,000+ = 6% of the value |
| eBay is Escrow.com, whichhandles eBay | | | | |
| auctions in the US and Canada. | | | | Once both parties have agreed, the title |
| | | | transfer processbegins and will guarantee |
| An escrow service acts as a neutral third | | | | this too, for a fee of$95. Title transfers |
| party. In anexchange of merchandise, the | | | | are handled by Centerpoint |
| buyer sends his money and the seller ships | | | | DiversifiedServices which works in all 50 |
| the product to the buyer.The buyer usually | | | | states. The fee, naturally,doesn't include |
| has two days to inspect his purchase, andif | | | | any transfer costs - it is only insurancethat |
| he is happy, he notifies the excrow company | | | | the title will be expedited to the |
| who releasesthe money to the seller, minus | | | | satisfaction of bothparties. |
| its fee. If the buyer isdissatisfied, he | | | | |
| returns the undamaged merchandise to | | | | also offers a service that will ship cars |
| theseller, and after the seller receives his | | | | almostanywhere in the world and will gather |
| merchandise back(in satisfactory condition), | | | | an auto history reportto inform sellers if |
| the escrow company returns thebuyer's money. | | | | their new chariot has been salvaged orstolen, |
| Thus both sides in the transaction | | | | suffered flood or hail damage, been in a fire |
| areprotected. The buyer almost always pays | | | | oraccident, has had an odometer rollback or |
| the fees for this,although sometimes buyer | | | | has been used as apolice car, a rental or a |
| and seller split the cost. | | | | taxi. |
| | | | |
| has created its "Vehicle Services | | | | Anyone considering offering used cars for |
| Division"specifically for dealing with the | | | | sale on eBay wouldbe well advised to |
| used cars, trucks, SUVsand almost anything | | | | thoroughly learn the services |
| else with wheels and a motor. The buyercan | | | | availablethrough and offer those to |
| have a 160 point inspection performed before | | | | prospective buyers.The trust factor will |
| agreeing tothe purchase. This is an | | | | skyrocket and your chances ofcompleting sales |
| inexpensive service and certainlywill save | | | | will dramatically increase. |
| the buyer any headaches. | | | | |