Yes, eBay could technically fit under the “Internet” section, but I think it is deserving of its own section because of the particulars. Did you know eBay sells more cars by 9 AM than most dealerships sell in a year? What makes that statistic even more incredible is the fact that eBay reported this back in 2006. At any one time, eBay has over 1000 Corvettes and nearly 1200 Mustangs for sale. If you are using the internet to find your next collector car purchase, eBay needs to be a site you frequent.
eBay Scams
Just like any other website, scams are prevalent on eBay. Many think just because it is being sold on eBay, it’s “safer”. It is true eBay has some measurements in place to protect buyers from scams, but it’s never foolproof. However, if you follow some guidelines you can greatly reduce the risk or even eliminate the chance for becoming a victim of a scam.
Be safe and follow eBay’s safety tips. Remember, if the deal looks too good to be true, it probably is.
Never use instant money transfer services, like Western Union or Moneygram, to pay for a vehicle. This warning appears all over eBay and should be followed, whether you are buying it through eBay or any other means.
Protecting Yourself on eBay
eBay Vehicle Purchase Protection Program
If you are the winning bidder or you buy a vehicle through the “Buy it Now” option, you are enrolled into eBay’s Vehicle Purchase Protection program, which covers you up to the amount of the car or $50,000. Among other things, this protects you from scam artists (if you do not receive the car), the make/model/year is not what was stated in the ad, the vehicle is stolen before it is delivered to you, and much more.
Some dealers post their inventory on eBay, but a majority of their sales are not done through eBay, even when the buyer originally found it on eBay. Remember, if you don't make the actual purchase through eBay, you have no protection through the eBay Purchase Protection Program.
More info on this protection program can be viewed at: http://pages.ebay.com/ebaymotors/buy/purchase-protection/index.html
Reserve Price and Buy It Now
Sellers have the option of setting a reserve price on the auction, which means the seller does not have to honor a winning bid if it does not reach the reserve price they set (although I have seen sellers still sell to the highest bidder if it is close and they really need to get rid of the vehicle). This reserve price is kept private from bidders. Sellers also have the option to set a “Buy it Now” price, which is a set dollar amount that the vehicle can be sold for immediately if a bidder or buyer really wants it. They can skip the bidding and just purchase it.
Although the reserve price is hidden from bidders, from experience I have found that the reserve price is generally about $500 to $1000 less than the “Buy it Now” option, if it is set. This is a good rule to remember if you are really curious as to what the reserve may be. This of course is not always the case, but a good guide to go by.
Feedback Score System:
eBay uses a feedback rating system where previous winning bidders rate and give feedback of the seller and how the transaction went. This works well with smaller items that can be shipped, but selling and shipping a car is quite different than a stereo system or other smaller item. Some eBay sellers are car dealers, so if all the items they have sold are automobiles, you can use the rating system fairly confidently. However if you see that a sellers past items are anything but vehicles, you should be somewhat more cautious, ESPECIALLY if the seller only has a handful of sold items.
The scoring system is based on a percentage, with 100% being the highest. Any rating below 100% should be closely scrutinized, and anything below 98% you should really be cautious. I rarely see dealerships with feedback under 100%, as they have a reputation to keep, and they only handle automobiles so they know how to help finance, transport, etc. It's the private sellers where you will likely see lower ratings, and if they are having problems with smaller transactions, imagine how a vehicle transaction could go?
Talk to the Seller on the Phone:
Whether the seller has a feedback rating of 100% or not, you should talk to the seller on the phone BEFORE making any bid, especially if this is a private seller and not a dealer. Dealerships will have their phone number on the auction listing already, and private sellers often list their phone numbers also. If they don't list it, send the seller a message requesting a phone number to talk them, and the best time to call. There's no reason why a seller wouldn't want to talk to a potential buyer, unless they are trying to hide something. You should find it highly suspicious if the seller is not willing to talk on the phone, as they should understand the hesitance of an online buyer, and the more they can convince an interested buyer to bid up the auction or go through the "Buy it Now" option, only helps them.
Extra Info Needed to Bid Over $15,000
You are required to have a credit card on file with eBay if you bid more than $15,000 for an item. If you believe you will be reaching that level by the end of the auction, or you are willing to go above that amount, make sure you have this on file before the closing minutes of the auction, because eBay will block you from bidding until they receive it. The last thing you want to be doing at auction end is frantically trying to get your credit card number entered. This credit card number IS ONLY a security measure by eBay to protect you and the seller. Your credit card WILL NOT be charged.
Payments
Payment can be made a few ways with a winning bid, but it is up to the seller on what options are available. Generally a seller will require some sort of deposit within 72 hours of winning the auction, and they will let you know the date when the full amount is required. You can pay through PayPal, but if it is over $2,000 you will be required to have a Business or Premier account.
If the seller is a dealership or some other institution, they will likely be able to help you finance a loan. You can also apply for a loan through eBay Motors, BUT you will want to do this before you bid and win an auction as the process is not instant and may take more time than the seller lists in the selling requirements.
Daily Emails with New Listings
An option eBay offers which not many people know about is being able to sign up for daily emails listing new items fitting your search criteria. Once you do a search fitting your criteria in the proper category, click on the “Save This Search” text link near the top of the page. You will need to login to your account if you are logged in, and you will then have the option to save the search with a checkbox for receiving daily emails with items fitting your selected criteria. This is great if you are looking for a hard to find vehicle and don’t want to look at eBay daily for this. Be aware that selecting a generic search term like “Mustang” or “Camaro” will likely give you hundreds of items a day. Also make sure you are searching under “Cars and Trucks” if you are only looking for a vehicle, as it will pull in anything with those terms including key chains, shirts, books, or whatever else has those keywords.
Chapter 4 - Finding a Classic Car on the Internet