Used Cars For Sale On eBay

Published: 30th August 2005
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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




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