How to Sell or Start Selling Cars on eBay with your Dealer License

EBay Dealer Marketing Guide

I have had great success using my dealers license and selling my cars on eBay. eBay is one of the world’s largest marketplaces for vehicles. When you get your dealer license, you will realize several thousand licensed dealers from not only the United States but all over the world sell cars on eBay on a regular basis.

Although buying and selling vehicles without a dealer license is allowed in most states, you may only sell 5 to 6 vehicles a year without a dealers license. If you plan on selling more than 5 or six vehicles a year, you should plan on obtaining your dealer license.

I have found that there is a huge variance of prices on eBay, sometimes even for the same vehicle. You may find a late model Nissan Altima for $12,500 one week, and the next week someone has a “Buy It Now” price of $7,995. Through my experience, I have found that individuals that selling cars on eBay tend to receive higher prices than a person that holds a dealers license. I have also found if you have a rare vehicle, or anything that was produced in limited numbers, eBay is the place to be.

After you obtain your dealer license, don’t just limit yourself to selling your cars on eBay. You may be able to purchase a large part of your car dealership inventory from eBay. You may sometimes find that you can purchase vehicles on eBay for less of an investment that you will pay at a dealer auction. Not always, but sometimes. Some weeks everything at a dealers auction sells high while all the vehicles in a certain geographic area on eBay are selling low. You will have to do constant research on vehicle pricing to know when to buy and when to sell.

I have also found that vehicles on eBay, just as at dealer auctions, tend to follow price patterns depending on the area the vehicle is located. For example, Chevy trucks may have a sales slump one week in the Southeast United States, while they are selling for premium prices in the Midwest. Another week Ford Mustangs may receive top selling prices in Texas, but obtain much lower bidding in Chicago. EBay prices and dealer auction prices tend to follow the same pricing patterns. I have found that if vehicle prices are low at, lets say,  the Atlanta dealer auctions, prices for vehicles being sold in the Atlanta area on eBay are also in the lower range. The opposite also seems true. If vehicle prices are high at the Chicago dealer auctions during a certain week, the prices for vehicles being sold on eBay in the Chicago area also seem to be higher.

There can be a huge variance in vehicle prices on eBay and your local newspaper. Most of the time the vehicles on eBayeBay. By keeping a constant eye on eBay vehicle pricing, you will know when to purchase a good deal in your local newspaper and use your dealer license to sell it for a profit on eBay/p> If you have a rare vehicle, you may find buyers from all over the world that want the exact vehicle you are selling and are willing to pay a premium price

My niche is motorcycles. I have purchased many motorcycles on eBay then used my dealer license to them for a profit in my local newspaper. The reverse is also true. I have purchased several motorcycles in my local newspaper then sold them on eBay.

The way I can do this is buy constantly researching motorcycle prices on eBay and my local newspaper. You need to know when you find a good buy and be ready to purchase it immediately.

Once, I purchased a 1973 Kawasaki Z1 motorcycle in my local newspaper because I knew there was a great demand for this model in Tokyo, Japan.

For several years Japan had a restriction on the size of motorcycles that could be driven there. Japanese residents were only allowed to drive motorcycles with engine displacements of 250cc or less. Japan has produced some of the greatest motorcycles on the planet, but any motorcycle larger than 250cc had to be exported. A couple of years ago, Japan’s laws regarding the 250cc motorcycle restriction were lifted. Now Japanese residents could own any size motorcycle and many wanted the classic Japanese Superbikes that were produced in the 1970’s. The only problem was that all of these bikes had been exported years earlier and were no longer to be found in Japan. Now, many nostalgic Japanese motorcycle enthusiasts wanted them back. Where did they look? EBay. With a little research on eBay’s “Completed Listings” I found out what Japanese residents were willing to pay for these classic superbikes of the seventies. I found they were willing to pay a premium price for classic Japanese motorcycles in top condition.

I concentrated on a few model years of Kawasaki and Hondas that were becoming highly sought after. I constantly scanned not only my local newspaper, but the online editions of several newspapers within driving distance of my dealership.

When I found a 1973 Kawasaki Z1 in my local newspaper, I knew it was a sought after collectible that would easily sell in Japan. I immediately purchase the motorcycle the morning it was listed. I then brought it back to my dealership, cleaned it up, took several pictures then listed it on eBay.

I made sure to select International sales on the listing page so I could receive bids from Japan. I placed a “Buy It Now” on the auction and it sold on the second day! I thought the bidder would be a Japanese resident so I stated in the ad that I would assist in International shipping. I made it clear, however, the buyer would be responsible for all shipping arrangements and charges. Come to find out the winning bidder was an American resident with a California Dealer License that owned an export company in Fresno, California. When I spoke with him, I realized he was from Japan and purchased the motorcycle to ship back to Tokyo for a profit.

More often, you will find vehicles to be priced cheaper on eBay that your local newspaper. This is one of the most common methods in the automobile dealer industry. Many dealers purchase their entire inventory on eBay, and then market the vehicles for a profit in their local newspapers.

Whatever type of vehicle you choose to specialize in, whether it is cars, trucks, boats, motorsports, commercial vehicles, etc, the best knowledge you can possess if the knowledge of a vehicle’s value on eBay, local newspapers, and dealer auctions. Know vehicle pricing. The advantage of vehicle pricing knowledge allows you to quickly purchase a vehicle that is priced right then sell at a profit. Knowledge of vehicle pricing in your niche will allow you to know whether or not it is a good buy.

One of the greatest marketing advantages for license automobile dealers is eBay’s “Feedback” ratings system. When you make a buy or a sell you can leave feedback on the transaction that will let future buyers know what to expect when purchasing from an eBay customer.

The more “Positive Feedbacks” you receive, the more likely someone is to purchase from you in the future. For example, if you sell 10 cars to 10 customers, with each customer leaving you a positive feedback, you future customers will see you have 10 positive feedbacks. When a customer sees that you have multiple positive feedbacks, they are more likely to bid on your vehicles. The reverse of the feedback system is also true. If you have several negative feedbacks from your customers, most potential customers will not bid on your vehicles.

My experience selling cars on eBay has also shown the best time to end an auction is on a Sunday night. Research has shown Sunday evening traffic on eBay is much higher than any other time period. You may pay a small fee and have your listing last 10 days instead of the usual 7 day auction period. I always start my auction on Thursday night with the 10 day auction option, which will allow two full weekends of high traffic exposure, while ending the auction on a Sunday night.

One of the greatest marketing advantages for license automobile dealers is eBay’s “Feedback” ratings system. When you make a buy or a sell you can leave feedback on the transaction that will let future buyers know what to expect when purchasing from an eBay customer. The more “Positive Feedbacks” you receive, the more likely someone is to purchase from you in the future. For example, if you sell 10 cars to 10 customers, with each customer leaving you a positive feedback, you future customers will see you have 10 positive feedbacks. When a customer sees that you have multiple positive feedbacks, they are more likely to bid on your vehicles. The reverse of the feedback system is also true. If you have several negative feedbacks from your customers, most potential customers will not bid on your vehicles.

Another bit of information I have found from my experience on eBay is that I am one of several thousand dealers across the United States that is utilize this website. If you have a rare vehicle, you can almost always get the top price possible by listing it on eBay. If you have a very common type of vehicle that several other dealers are marketing, you may not get the top price on eBay. You may be better off selling a more common vehicle in your local newspaper or on Craigslist.

How to List a Vehicle on eBay

Before you begin listing a vehicle on eBay, you will need to have a digital photograph of the vehicle, preferably several, located on your computer. The easiest way to upload the photographs to eBay is to store the pictures in a file on your desktop. You might want to name the file “Car Pictures”.
When you have taken several photographs of your vehicle, including inside photographs and exterior photographs from all angles, just upload the pictures into the “Car Pictures” folder on your desktop.
Now go to www.eBay.com. When you arrive on eBay you will need to register as a new user. Just click on the “Register” button located on the home page. You will need to fill in the name, address, and telephone number. You will then be asked to enter your email address, then re-enter your email address. After you have entered your email address, you will be asked to create an eBay user id. You will then be asked to enter a password. Be sure to write down your user id and password and store it in a safe
location for future use. Next eBay will ask you to choose a security question. This is a question that will be sent to you if you ever lose your password. You will then be asked to answer the security question. Then enter your date of birth and the security symbols into the security box. You will need to read the terms of use and privacy policy and check the “I Agree” box, then click on the “Register” button.

You are now a registered user on eBay.

To list your vehicle on eBay, just follow these simple step by step instructions.

Click sign in, then you will be taken to the sign in page
Enter your user name and password, and then click “Sign In”
If you see an advertisement on the next page, just click on Continue to My EBay
This is your “Home” page
At the top right of the screen click on the “Sell” link located between the “Buy’ link and the “My EBay” link
Then click on “Sell an Item”
You may see an advertisement page, just click on “Continue” or “Start Selling”
You may be asked to sign in again since you will be selling an item
You will then be directed to a “Select a Category” page
Click on the link that says “Sell a vehicle or auto part”
This page contains lots of great instructions such as the selling checklist, payment and delivery methods, and excellent advice on preparing your vehicle for sale
Click on the “Start New Listing” or “Continue” button
Click on the type of vehicle category you are selling such as “Cars & Trucks”, “Motorcycles” ,”Other Vehicles”, “Boats”, “Powersports”, or “Parts”
For an example, I will select “Cars & Trucks”
Then select the brand of car or truck you are selling
Then select the model
If you would like, you may now view sample ads by clicking on the sample ads link.
You are now taken to a page that gives your one of two selling choices.
You can sell your vehicle “Nationally” or “Locally”
Selling Your Vehicle Nationally
If you have a rare or unique vehicle that is in high demand, you might choose to advertise nationally.
If you list a vehicle nationally you will not be charged unless someone purchases the vehicle, or if the vehicle reserve has been met. If your reserve is met, or if you sell the vehicle, you will be charged one hundred dollars plus the final listing fee. If you submit more than 4 photographs, eBay will also charge you a fifteen cent insertion fee per photograph. If you choose to sell your vehicle nationally and receive no bids, you will not be charged a final listing fee.
If you sell nationally you can choose whether to sell at an “Auction Style Listing Format” or “Fixed Price Format”.

Auction Style Listing Format

Selecting the auction style listing format allows you to set a starting price and you may choose whether your auction lasts 3, 5, 7, or 10 days. Your customers will be able to bid on your vehicles in an auction style format. You will be able to sell at a reserve price or you may choose to let your customers “Buy It Now” at a higher price so the customer can purchase the vehicle immediately. After the purchase, the purchaser may leave feedback for the seller. Your fees will be based on the starting price and ending price of the vehicle. I always start my auctions on Thursday night using the option of a 10 day listing so the auction ends on high traffic Sunday night. When the auction ends, the highest bidder wins the vehicle.

Fixed Price Format

If you choose the fixed price format, you will disclose the sales price in your ad so buyers can purchase the vehicle at any time for your fixed asking price. You can choose the auction to last 3, 5, 7, or 21 days. If you are selling under a fixed price format, you may also choose to accept best offers from buyers. This is an excellent method for car dealers. This allows to buyers to send offers under your asking price that you can accept or decline. Only the person that submits the offer will know the dollar amount of an offer you have declined, it is not disclosed in the ad so future bidders may offer an amount that is much larger than one that has already been declined. EBay requires you to have at least 10 or more feedbacks to offer any vehicle at a fixed asking price. If you are new to eBay, you will need to participate in at least 10 transactions via auction style
listing format before you can sell your vehicles in a fixed price format. After a fixed price format, the purchaser may leave feedback for the seller.

Selling Your Vehicle Locally

EBay now allows you the option of selling your vehicles in a locally classified ad format with no insertion or final selling fees. There are no charges for this service even if you sell the vehicle. This free eBay service is provided to compete with Craigslist and has become very popular. This might be your chosen method if you are selling lower priced vehicles within a 100 mile radius of your dealership. You will list your asking price in your ad and no bidding will take place. Potential buyers will fill out a contact form that is emailed to you. You may also place your phone number in your ad if you choose. You cannot choose the duration of your ad, all ads placed in the local format will last for 7 days and will only be shown to eBay purchasers located within 100 miles. You can revise the listing at anytime during the 7 day period and you can relist the vehicle if it doesn’t sell. This type of sale takes place in person and no feedback is left.
First I will show you step by step instructions on listing your vehicle nationally in an auction style format; I will then show you step by step instructions on how to list your vehicle locally. If you want to sell your vehicle locally, just skip the “Listing a Vehicle Nationally” section and just go down the page to the “Listing a Vehicle Locally” section.

Listing a Vehicle Nationally

At the bottom of the “Sell nationally” box just select “Sell nationally using the auction style format” button or “Sell nationally at a fixed price” button. This is up to you but I normally select the auction style format to I can auction the vehicle to the highest bidder
Choose one, and then click on the “Select” button
You will then be led to an information page that advises you to have your pictures, Vehicle Identification Number, and mileage ready
Then click “Save and continue”
You are now led to the “Title and Description” page where you will describe your vehicle
Enter your Descriptive listing title. You may enter up to 55 characters; make sure to enter good descriptive text that will catch the eye of potential buyers.
Enter a sub model if you choose
Enter the year of the vehicle
Enter the VIN number
Enter the type of vehicle
Enter the mileage
Enter the color
Enter the engine information
Check whether it is new or used
Check whether or not you are offering any type of warranty
Check what type title you have, whether it is clear, salvage, or other
Select whether you are a dealer or individual (If you have a dealer license always disclose that you are a dealer)
Next enter a description of the vehicle. If you have an HTML editor, you can copy and paste your HTML into the HTML tabbed box.
If you do not know HTML, just type, or copy and paste your ad into the Standard box. Be sure to be as descriptive as you can and always disclose any minor mechanical or physical issues no matter how small. Your goal is to earn positive feedback.
You may then click on the “Preview” link to see what your ad will look like
Then click on “Save and continue”
You are now on the “Pictures and Details” page
Enter your starting price. This is the opening amount of the auction.
If you want to offer your purchasers a “Buy It Now” price, enter the buy it now price here. A $1.00 fee will apply if you enter a buy it now price.

Enter a reserve price if you choose. This is the lowest amount that you are willing to take for the vehicle and it is not shown to the buyers unless it has been met by a bidder. If the reserve is not met, you will not be required to sell the vehicle. You will be charged a small fee for entering a reserve price.

Now you will enter an auction duration of 3, 5, 7, or 10 days. If you choose the 10 day auction selection, you will be charged an additional $8.00. I think the $8.00 fee for a 10 day auction is well worth the charge if you begin your auctions on Thursday night since it will give you two full weekends of exposure with the auction ending on high traffic Sunday night.
You may then choose private listing if you do not want your bidders identity to be disclosed. This can encourage more bidding by purchasers that do not want to disclose their identity to the public
Enter whether or not you want a counter to be placed on your add This will show how many visits your ad has received.
You may then choose whether or not to give a portion of your sales price to a charity. This is entirely up to you.
Now you will enter the photographs of your vehicle. EBay allows up to 4 pictures for free. They recommend using at least 12 pictures to help sell your vehicle. You will be charged fifteen cents for each picture after the four free ones. EBay also recommends using picture sizes of 1024 X 768 pixels.
Enter your pictures buy clicking the “Add Pictures” button
You will then have four options to select depending on how you want to upload your pictures.
Select the “Basic” tab if you want to upload the pictures directly from your computer
Select the “Enhanced” tab if you want to install eBay’s enhanced picture uploading software on your computer
Select the “Copy Web Files” tab if you want to load pictures directly off another website
Select the “Self Hosting” tab if you are using a third party picture hosting service
I find it is easiest to select the “Basic” tab and upload the pictures directly from my computer
Select the “Basic” tab
Select the “Browse” button

A file on your computer will now open. Look for the “Car Pictures” on your desktop and select each photo one at a time.
You may then select any optional upgrades such as “Gallery Plus”, “Vehicle Picture Pak”, or “Supersize Pictures”. Each option will give you listing more exposure but you will be charged for each photograph option selected
Now click the “Upload” button
Your photographs will now be uploaded to your eBay add This can take anywhere from a few moments to over an hour depending on the size of your pictures. If you can reduce the file size of the pictures, they should load much faster. You will see dots rotating in a circular motion beside each picture. You will also see a green bar that is advancing from left to right with the number of pictures that have already been uploaded. The circular dots and the advancing green bar informs you that your pictures are correctly being uploaded. Be patient, it might take a very long time to upload your pictures.
Once your pictures are uploaded, picture upload box will automatically close and you will see your pictures in “Pictures and Details’ page
Now eBay offers you more posting options such as Pro Pack, Featured Plus, Bold, Border, Highlights, or Listing Icons to make your ad stand out. You are charge accordingly for each option you choose.
At the bottom of the Details and Pictures page you can preview exactly what your ad will look like by clicking on the ad
Then click the “Save and continue” button
You are then led to the “Payment and Shipping” page
Here you will enter the types of payments you are will in to accept, such as cash, cashier’s checks, etc.
You will select when full payment is due and if you would like a deposit via PayPal
At the bottom of the page you will enter or change any contact instructions
Then click the “Save and continue” button
You are now on the final “Submit and Review” page
Be sure to double check all the information on this page to make sure everything is correct. You may change any portion of your ad by clicking on the “Edit” text located to the right of each listing section
When your are positive all the listed information is correct, click on the “Continue” button
Your vehicle is now listed on eBay
You now be led to page that states “Congratulations”

Listing a Vehicle Locally

On the Sell Locally box, click the Select button
You will then be led to an information page that advises you to have your pictures, Vehicle Identification Number, and mileage ready
Then click “Save and continue”
You are now led to the “Title and Description” page where you will describe your vehicle
Enter your Descriptive listing title. You may enter up to 55 characters; make sure to enter good descriptive text that will catch the eye of potential buyers.
Enter a sub model if you choose
Enter the year of the vehicle
Enter the VIN number
Enter the type of vehicle
Enter the mileage
Enter the color
Enter the engine information
Check whether it is new or used
Check whether or not you are offering any type of warranty
Check what type title you have, whether it is clear, salvage, or other
Select whether you are a dealer or individual (If you have a dealer license always disclose that you are a dealer)
Next enter a description of the vehicle. If you have an HTML editor, you can copy and paste your HTML into the HTML tabbed box.
If you do not know HTML, just type, or copy and paste your ad into the Standard box. Be sure to be as descriptive as you can and always disclose any minor mechanical or physical issues no matter how small. Your goal is to earn positive feedback.
You may then click on the “Preview” link to see what your ad will look like
Then click on “Save and continue”
Now you are led to the “Pictures and Details” page
Enter your advertised price
Select what type of visitor counter you would like
Then click the Ad Pictures button
You will then be instructed to browse your computer for pictures to use in your ad
After you choose your pictures click on the upload button
Remember, uploading pictures can take only a few moments or it can take over an hour
Once your pictures are uploaded, the picture box will automatically close
You can then select Bold, Border, or Highlight options. Each option you select ads additional charges.
You can now preview your ad or click the “Save and continue” button
Now you are led to a “Payment and Shipping” page where you can add any additional payment or contact instructions
When everything appears correct, click on the “Save and continue” button
You are now directed to a “Review and Submit Listing” page
Be sure to look over this page carefully and I always suggest clicking on the “Preview Listing” button to see how your ad will look to your buyers
When you are ready for your ad to go live on eBay, click on the “Continue” button
Whether you chose to sell your vehicle nationally or locally, you have just listed your first vehicle on eBay. Congratulations are definitely in order.
EBay advises that it could take up to eight hours for your vehicle to show up, so be patient if you do not see your ad immediately.
You will soon receive questions from potential buyers regarding your vehicle. You can view your questions by signing into your eBay account, or just check your email. You respond directly to your buyers by hitting resend on your email program, or use eBay’s easy message reply system
Be sure to check your messages as often as possible so you can answer any questions from potential buyers
Also when your auction ends, be sure to contact the buyer immediately to arrange for a pickup time for the vehicle

Be as honest as possible with all of your eBay customers and you should always work to obtain your customers positive feedback

Good Luck Selling Cars On eBay