|
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
om and offer those to
prospective buyers. The trust factor will skyrocket and your
chances of completing sales will dramatically increase
|
