There are thousands of used cars for sale on eBay every single
day. In fact, eBay Motors is the most profitable sales division
on eBay and naturally there are many entrepreneurs who are
interested in jumping into this market. For instance, eBay
claims it sells an SUV every nine seconds and is the biggest
online car dealer in America, exceeding the traditional car
companies. In fact, there are 15 million cars sold over the
Internet each year - and growing.
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. The one chosen by eBay is Escrow.com, which handles
eBay auctions in the US and Canada.
An escrow service acts as a neutral third party. In an exchange
of merchandise, the buyer sends his money to Escrow.com 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 excrow 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 company
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.
Escrow.com has created its "Vehicle Services Division"
specifically for dealing with the used cars, trucks, SUVs and
almost anything else with wheels and a motor. The buyer can have
a 160 point inspection performed before agreeing to the
purchase. This is an inexpensive service and certainly will save
the buyer any 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
Escrow.com and then take delivery of the vehicle. The seller
ships the car after he knows the money is secure with the escrow
company. The seller must provide tracking information, which is
verified by Escrow.com.
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 Escrow.com will guarantee this too, for a fee of $95. Title
transfers are handled by Centerpoint Diversified Services which
works in all 50 states. 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.
Escrow.com 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 services available through
Escrow.com 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. http://www.auction-genius-course.com
|
