Smart Buying Essentials

Sell Your Car - to The Highest Bidder!

Moving pre-owned vehicles on eBay Motors

We've all been there. You have a vehicle that you need to sell, and you cringe when you even think about having to deal with it. Until recently, if you wanted to sell a car on your own, you only had a limited number of options. You could sell it to a dealer or trade it in, but you knew you certainly wouldn't get the best end of the deal. Alternatively, you could list your vehicle in the local classifieds, but then you would have to field phone calls 24/7 and deal with a revolving door of strangers coming to your house to see the car.

Today, thanks in part to the Internet, there are other options when it comes to unloading a used car. One Web site in particular has evolved as an extremely popular place to buy and sell almost anything, including vehicles of all types. eBay Motors is the automotive arm of the world's largest online marketplace and offers a consumer-friendly auction-based environment.

Why would you ever sell your car online? More to the point, who would ever buy your car sight unseen over the Internet? It may surprise you to know that today an automobile sells every minute on eBay Motors. And in June 2004, eBay Motors announced the sale of the millionth vehicle on the site. Many sellers have found eBay the perfect place to list vehicles – they can often reach a larger market, communicate much more detail than a typical three-line newspaper classified ad could, and weed out the not-so-serious buyers since a bid on eBay is binding.

Now that you're convinced it's a good idea, how do you go about selling a vehicle on eBay Motors?

You Still Need to Do Your Homework
You can't just plunk your car's photo down on eBay, sit back and wait for the bids to roll in. Some advance preparation and research will go a long way in helping you sell your car for the price it deserves.

Start by researching the value of your vehicle to determine the price that a buyer is most likely to pay. Refer to the used vehicle valuations at IntelliChoice.com and review similar eBay Motors listings for price information.

Let's say you are selling a 2001 Honda Accord EX coupe. The IntelliChoice.com trade-in valuation for this vehicle is $11,309 and the retail valuation is $15,888, as of this writing. The retail valuation is a good indication of the top price you could receive, though the reasonable target is between trade-in and retail price, where private sales generally fall. The "Completed Listings" on eBay Motors corroborate the IntelliChoice.com valuation, showing prices anywhere from about $12,000 to $15,000 for a 2001 Accord EX with under 40,000 miles.

Don't price your car excessively high thinking that you can negotiate down. Extremely high prices will scare away potential buyers. Based on your research of market values, pick a price that you know is reasonable and stick to it.

Make sure you are familiar with your vehicle's history. If you're not the first owner, run a vehicle history report through a service such as AutoCheck to ensure the vehicle has a clear title.

Download the seller's checklist from the eBay site. It is a convenient one-page document that will help you collect all the relevant information about your vehicle as you prepare to list it for sale.

Marketing Your Vehicle on eBay Motors
Start by writing an accurate and descriptive title. This is the first thing potential buyers will see when they skim the list of auctions. "2001 Honda Accord EX Coupe, 30,000 miles, excellent condition" is much better than "Wow! Great car, low mileage!" Similarly, make sure the thumbnail image of your car that appears next to the title is crisp and that the vehicle is centered in the frame.

A good listing is detailed and honest, inspiring trust in potential buyers. A thorough listing should include a general description of the vehicle, a list of features and options, and an overview of the car's history and maintenance. Disclose any relevant details pertaining to the title and fully describe the condition of the car, including any exterior damage and mechanical problems. Honesty is definitely the best policy, so don't misrepresent the facts. It may not end up killing your deal, but it could result in a buyer giving you negative feedback in the eBay community after the transaction, which is a longer-term problem.

Include lots of photos. Take photos of every angle of the exterior and all key features of the interior. Potential buyers will also be happy to see a shot of the odometer and that it actually corresponds with the mileage you state in your listing. Take photos of any visible damage such as ripped upholstery or a ding on the door. This is as close as your potential buyers will get to making a visual inspection of the vehicle before they decide whether to bid. If you are light on photos, a buyer may pass and bid on another vehicle with a more complete listing.

Clearly outline all terms of sale. Specify what you require for a deposit and how soon after the auction close you require the balance of payment. Be clear on vehicle shipping methods and whether you are taking any responsibility for shipping the vehicle to the buyer. Indicate how and when you will transfer the title after having received final payment.

Consider using eBay's CARad service to actually create and post your listing. For just $9.95 per vehicle, this tool is a failsafe way to create a complete, professional-looking listing, including the posting of a much larger number of photos than are allowed on just a basic eBay listing.

Get your listing right before you click "submit" to post it to the eBay Motors site. Once you get a first bid, you cannot change your listing or add photos. When you submit your listing, you will be charged a listing fee, plus extra for any optional features you used in your listing. Note that eBay Motors' fee structure is different from that on the rest of eBay. The basic listing fee is $40 for a car, truck, or other passenger vehicle. There is no final value fee in eBay Motors, but there is a $40 transaction fee that is charged when bidding meets your reserve price.

Tools of the Trade
Aside from great photographs and thorough descriptions, there are other steps you can take to instill confidence in prospective buyers.

Have your vehicle inspected by a third party. eBay has partnerships with both SGS Automotive and Pep Boys, both of whom have a nationwide network of automotive specialists who can perform a complete mechanical and cosmetic inspection (for a fee) wherever the vehicle happens to be.

Participate in the Condition Guarantee by Seller Program. The purpose of this program is to provide buyers with confidence that the vehicle's condition is as described in the listing and protects buyers if the vehicle's condition is materially different. For certain vehicle purchases, this program covers up to 50% of the vehicle's purchase price (with maximum coverage of $10,000.)

Decide whether to set a reserve price. A reserve price is the minimum price you would accept for the vehicle and it is a good idea to set one when selling a big-ticket item like a car. Reserve prices are not published for buyers to see, but an auction will indicate whether the reserve has been met or not. As a seller, you are not obligated to sell the vehicle if the reserve price has not been met. If, during the auction, you are concerned that your reserve price is too high, you can lower it at any time.

You may also consider including a "Buy It Now" option in your listing, giving buyers the opportunity to circumvent the bidding process altogether and purchase the vehicle immediately at a set price.

Closing the Deal
Stay actively involved in the process of selling your vehicle on eBay. Make sure your contact information is available and accurate and encourage prospective buyers to contact you with questions. If you've done a good job of describing your vehicle in the listing, only serious buyers will contact you. Be responsive in addressing concerns and questions throughout the listing period and after the sale. Remember that feedback is an important part of the self-regulation of the eBay community, and you want to give your buyer every reason to give you a positive score.

Be aware that you can stop your auction if you find a serious buyer. Dealers often do this because they are also advertising their inventory through other channels and they may find serious buyers elsewhere. But as a private party, you can also do it if you've found a buyer (online or offline) who wants to close the transaction.

Once your auction is closed, it is time to finalize the nitty-gritty details. While eBay's Internet payment service, PayPal, can be used to fund a vehicle deposit, you will probably prefer to receive the remainder of the balance through either an escrow service, certified check, or wire transfer. eBay Motor's finance partner, Escrow.com, will hold the buyer's payment and send it to you only after both parties are fully satisfied with the transaction.

The vast majority of transactions that take place on eBay go smoothly and without incident, but the company does have processes in place to resolve rare cases of dispute between buyers and sellers.

Remember that eBay Motors is just one of a number of alternative used-vehicle outlets. Other online automotive marketplaces exist as well, such as AutoTrader.com and Cars.com. Auto Trader boasts over two million vehicle listings and Cars.com claims well over half a million. And of course, there are always your local newspapers and other classified publications which offer a level of convenience and access to local buyers.

Selling through eBay Motors can be a fun way to sell your vehicle and get a better price than a typical dealer trade-in. Plus, if you've sold anything on eBay before, you know that it can be positively exhilarating to see your item being ferociously bid up in the days, hours, and especially minutes before your auction closes. Do your research ahead of time, market your product well, and you'll find a buyer at a price you're happy with.

Fees for Selling on eBay Motors:

Passenger Vehicles

Insertion Fee $40.00

Transaction Services Fee* $40.00

Motorcycles

Insertion Fee $30.00

Transaction Services Fee $30.00

* Transaction Services Fee is charged at the time of the first bid, or if there is a reserve price, the first bid over the reserve. There is no final value fee at eBay Motors.

Picture Services:

Photo hosting

First photo free with listing - $0.15 for each additional photo

"Supersize" photos $0.75 for all photos listed

Vehicle Picture Pack $2.00 (includes 12 photos with the Supersize capability)

Formatting and Upgrade Services:

"Buy It Now" feature $1.00

Setting a reserve price $2.00 (refundable if the vehicle sells)

Setting specific start date $1.00

10 day listing $5.00 (as opposed to usual maximum 7 day listing)

Bold listings $4.00

Highlighted listings $5.00

Add a border $4.00