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