News: Buyers Kick Virtual Tires on eBay Motors
August 27th, 2005 by Laurie BarakSource: USAToday
Buying a used car long-distance may seem crazy, considering the things that can go wrong even if you’ve bought one from your next-door neighbor. But eBay says its formula — letting people bid up to the price they want to pay, allowing space for buyers and sellers to air their grievances when a transaction goes wrong, and offering limited guarantees in case vehicles are truly lemons — attracts buyers. Buyers can read feedback on Sellers, and a Seller who draws too many complaints can be kicked off the site.
Fans say the site is better than searching through classified ads, because sellers can post dozens of pictures of the vehicle. And to preserve their reputations, sellers usually spell out every nick, scratch and rattle in extreme detail.
eBay Motors has sold more than 1 million cars since 2000, when the company realized so many people were selling vehicles through eBay that it set up a separate auction site. Although eBay won’t say how many cars it expects to sell this year, it says a car is sold through eBay Motors every minute. Nearly 75% are sold to long-distance buyers.
eBay Motors charges $40 for a basic listing and another $40 if a car gets bids. Once bidding is done, completing the transaction, including financing and title exchange, is up to the Buyer and Seller. “Our process really allows a customer to get more comfortable with a car,” says Drew Lieberman, senior director of eBay Motors. “In some ways, there’s less pressure than buying a used car the traditional way.”
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