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Step By Step Checklist (In Province): You’ve Won, Now What?

Filed under Step By Steps by staff on March 30, 2010 at 2:56 pm {no comments}

You’ve contacted the eBay Motors seller and worked out the details before hand, and negotiated a great price on the car or won it with a last second bid, so now what?

It’s time to complete the eBay Motors Canada transaction.

There are quite a few different sets of circumstances that’ll define how to get your car from the seller’s address to your drive-way. The first, and easiest, is an in-province sale.

Understanding The Seller’s Payment Method

This is a big one because Canadian Seller’s are notoriously clueless when it comes to listing their vehicles. In any case, the details should be worked out before you bid. However, if you find yourself in a bind for time, the first thing you should look at is the SHIPPING & PAYMENT tab which is located to the right of the DESCRIPTION tab.

Which leads you to the Item Shipping and Description Page which should have all the information that you need. But,

Of course, the Shipping and Payment options were left empty and the page redirects you back to the Description. The Description makes no note of the Payment options other than, “The Car Must Be Paid in Full in 7-Days.”

This is why it’s very important to work out exactly what’s going to happen before bidding. Sellers should be asking for some form of deposit, and at the very least be asking for enough money to recoup their Transaction Services Fee of $100 and listing Fee of $15. If someone hasn’t taken the time to write out detailed payment instructions on any car, one of two things is happening: 1) They’re lazy which reflects poorly on the car and you should definitely check their feedback or 2) They’re looking to move the car off of eBay and save themselves the fees.

At this point, you absolutely have to read eBay’s Vehicle Protection Plan because while it says $50000 coverage; it does a very poor job of explaining the MANY CAVEATS and EXEMPTIONS that you’ll encounter. Unfortunately, the links on eBay Motors Canada all lead to error pages, so I’ve prepared this simple but rather lengthy breakdown: What You Should Know and The Secrets Behind eBay’s Vehicle Protection Plan.

Although I’ve taken their policy and ordered in order of importance, please read the whole thing.

Purchasing A Car From The Province That You Reside In

The Autocheck and CarFax both say that the car hasn’t been in an accident, it’s not a lemon, it’s passed the safety inspection, it’s not a salvage and there are no outstanding liens or theft-reports on it. You’re set to begin the process of purchasing and registering the car. If you’re purchasing from a dealer, they’ll generally walk you through the process without any hassle.

First, Check The Title of the Vehicle Versus The Seller’s Name

It’s always a good idea to make sure the person you’re buying the vehicle from has it registered under his name or has power of attorney to sell the vehicle.

It’s never a bad idea to scan or photocopy all of the documents, along with the seller’s proof of identity: a driver’s license will do the trick. If you don’t have a photocopier available, just grab a quick photo of both the driver’s license and the seller himself. Anyone that’s selling a car shouldn’t have a problem with you taking their picture.

Check That the Vehicle Identification Number Matches The Number on the Permit & Registration

Make sure everything’s in line and you’re buying the car that’s passed the Autocheck or Carfax.

Check Your Province’s Policies Regarding The Registration and Fee Structure For A Transfer of Ownership

This is by far the most important step when buying from anyone, especially with a private transaction. Each province has a different set of steps to transferring ownership as well as a different set of taxes — everyone loves taxes, right?

The Bill of Sale

In Ontario, the Bill of Sale is located in the Vehicle Information Package ($25) that the seller MUST purchase prior to legally selling his car in Ontario.

At the very least your Bill of Sale should include:

Personal Information For the Seller: Name & Address
Personal Information For the Buyer: Name & Address
Purchase Price: The Price in Canadian Dollars, Where or Not Sales Taxes Have Been Included and The Payment Method (Cash, Cheque, Etc) — If paying by Cheque or Money Order, record identification number on form.
Motor Vehicle Information: Make, Model, Year, Body Type, Engine Size, Odometer Reading and VIN
Odometer Disclosure Statement: The Seller must state whether or not the Odometer is displaying the correct mileage (if not, for what reason) and explicitly state that the odometer has not been altered, set-back, or disconnected. If the Odometer has been replaced or repaired, the seller must state whether or not the Odometer was set to the correct mileage.
Details Regarding Signing: The Date and Place the sale was finalized, Your signature along with the seller’s signature and the signature of a notary, or at the very least, a third-party that’s not related to either the buyer or seller and can act as a witness.
Complete and Detailed Accident History: If the car’s been in an accident, make sure to get the exact details of what was damaged and in turn, repaired.

The Bill of Sale Must Also Include:

Take a look at your AutoCheck or CarFax statement and included all of the title items into the contract:

Seller is the rightful owner of the vehicle
There are no liens against the vehicle
The Car was not in a major accident
The Car was not flooded
The Car is not a salvage
The Car is not unfit
The Car is not suspended

The Vehicle Information Package in Ontario will contain much of this, but while it is mandatory, many sales have occurred without its purchase. Remember, Car Fax and Autocheck are often inaccurate. If you can get a seller to sign off on the Car Fax, you’ve added yet another layer of protection.

Any Additional Terms, Conditions, Warranties

Here’s your chance to include any terms and conditions — especially warranties. Depending on the deal, you can fill this with whatever floats your boat. If the vehicle hasn’t yet passed a safety inspection, feel free to mandate that any major failure, requiring X dollars in repairs, void the contract. The same is true for a vehicle environmental emissions test. TIP: Check the date of the vehicle emissions test: it is good for one year (in Ontario) after inspection.

Finalizing The Transfer of Ownership

In Canada, you have between 6 and 14 days to finalize the transfer of ownership. Obviously, that gives you time to line-up insurance and get the vehicle checked out, if that was a term/condition of the sale.

Bring the Used Vehicle Information Package, Bill of Sale and the Vehicle permit, along with the completed Application for Transfer (located on the back of the vehicle portion of the registration permit) to A Driver and Vehicle Issuing Office.
Pay the applicable Sales Taxes. Check here for applicable taxes on auto-sales in your province. Remember: You will almost always be taxed on the purchase price or the whole-sale / dealer price, whichever is higher. If you’re buying off eBay, you’re probably going to get a solid deal and thus be dinged at the wholesale price. Governments do this because people enjoy lying to avoid taxes — unbelievable, eh? — but if you get an understanding person at the office, you should be able to explain that this car was won in an open auction, and thus it has to be an accurate whole-sale price.
Pay the licensing fees for your plates and permit. Depending on the province, these fees will vary. Also, if you’re attaching plates that you already own, you’ll save about 10-15 bucks. Also, you must pay for the sticker to validate your plates (which you should probably have a good idea of the cost already)
If you’re going to put the plates on your vehicle, you must present proof of insurance.
Hopefully a passing the Safety Inspection was part of the contract — At which point, you must present the Safety Standards Certification. For the purposes of Transfer of Ownership, a Safety Standards Certification is good for about 30-days depending on the province (In Ontario, it’s 36 days.) Don’t Forget: Many provinces don’t regulate the cost of a safety inspection, so shop around.
If your vehicle is registered, plated and emissions checks are required, show the emissions report and certification. In Ontario, the program is called Drive Clean. In Ontario, cars manufactured before 1988 or during the current calender year are exempt from the program. When purchasing the car, it saves you numerous headaches if the car has already passed the Drive Clean Standards. The Vehicle Emissions certificate is good for 1 YEAR.
If is the first time you’ve registered a vehicle with the province you’re in, you’ll have to present proof of identity (Driver’s license, Passport, etc)

Step By Step Checklist: It’s Time To Bid

Filed under Step By Steps by staff on March 28, 2010 at 5:23 am {one comment}

Now, it gets exciting. It’s time to find yourself a great car at a cheap price — or maybe it’s just time to haggle on a Buy-It-Now offer. It takes a special breed of person to actually convince a used-car salesman that not only is your sale important, but if he even thinks about screwing with you, he’ll lose your business.

A used-car salesman is a salesman from the day that he pops out of the womb — no different than a lawyer — they can smell bullshit from a mile away. They can sense weakness, even if you think you’re putting on a once-in-a-lifetime show for them. They know from the second you enter their dealership what you’re willing to spend on a car.

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But We’re on the Internet, thank God.

Even if you’re conversing with a dealer via email, the same signs aren’t there. He can’t see your brow wrinkle or palms start to clam up. You really do have all the power, at least until another bidder comes along.

REMEMBER: If you’re purchasing an American Car, there’s extra work in it for the seller too. If the dealer is considering two offers on a Buy-It-Now auction, he’ll always go for the one with the least amount of paperwork. Occasionally, you’ll have to toss an extra $100 or $200 his way to grease the wheels if you really want the car.

On the internet and eBay Motors Canada, money does all the talking. A Dealer or Salesman can still tell which buyer is going to be a pain in the ass by the emails alone. Would you accept an offer from someone that spent 500 words on incoherent drivel? If the emails are a problem, the transaction will certainly follow suit.

If This Were Your Car, What’s The Lowest You’d Take For It?

Take a look at the Kelley Blue Book for Used Cars. There’s a calculator there where you can find the “Trade in Value”, “Certified Pre-Owned Value”, “Suggested Retail Value” and the “Private Sale Value.”

With that in mind, understand who you’re talking to — a dealer, or an Average Joe — and go from there.

There’s no better way to guarantee the refusal of your subsequent offers than a ridiculous low-ball. An opening offer $5000 lower than you’d take probably adds an extra $500 dollars onto the price that he’d eventually accept.

Your First Offer on an eBay Motors Canada Vehicle Should Always Express Serious Interest

Your first offer has to skate the line between “I mean business” and “I’m looking for a terrific deal.” Remember, the seller will always assume that you’re willing to part with more money even if your first offer reads, “This is my first and final offer.”

So write down what you’d reasonably be willing to accept as the lowest offer for that particular car and subtract another 5%. At that price the seller, regardless of his profession, will understand that you’re not looking to rob him.

After You Receive Your First Counter-Offer

You’ll have to access the situation: Where is this offer in relation to what you’d reasonably expect to pay for this car, versus the lowest that you’d take if you were selling it?

If your offer comes back and the seller hasn’t budged or has only come down a couple hundred dollars, you’re probably in a bit of a bind; especially if you’re dealing with a Retail Dealer.

REMEMBER: The larger the dealership, the less likely they are to have flexibility in their pricing structure. Often, a dealer will be bound to the price it cost him, plus his cut of the deal. Getting a dealer lower than a 10% Return on Investment is like pulling teeth, so unless you’re a dentist…

Let The Honesty (or something that can be perceived as honesty) Flow Forth

At this point, it’s time for the big-guns: tell the truth. In the end, it’ll probably save you a lot of time, even if it costs you an extra couple hundred dollars.

Thanks for the prompt response,

Currently, I’m interested in your 2005 Chevrolet Silverado Pick-up and recently received a counter-offer of $9000.

To be quite frank, I’m working with a budget of $8700. $500 of which has already been alloted for GST and various registration fees. While the Silverado appears to be in terrific condition, I’d be naive not to assume another $250 dollars in inspection costs and any minor repairs.

I’m prepared to offer $8000 on the vehicle, which is $500 more than my initial offer. If this is not feasible for whatever reason, please let me know.

I’m watching quite a few trucks, so a prompt response would be appreciated.

Thank you for your time,

Dion Phaneuf

You know your budget and if the seller’s being unreasonable, it can’t hurt to share the information. If you’re expecting to pay $8000 but the seller wants at least $9500, you’re both wasting each other’s time.

Generally, it’s a good idea to leave the conversation open, especially with citizens rather than dealerships. There have been plenty of time when private sellers will respond to an email a few days later with, “I can do $8300 — Will that work?”

At that point, you’ve got them exactly where you want them. You can either pony up the $8300 or just revert to, “Sorry, I really only can do $8000.” More often than not, a seller that contacts you after communication has broken off is willing to accept your last offer.

Unless a car has minimum mileage or doesn’t come to auction very often, you are in the driver’s seat as the buyer.

Congratulations, you just bought yourself a car.

Unless,

eBay Motors Canada Auction Tips For Saving Money

First off, there’s a variety of (free & non-free) sniping services available, and while I can’t guarantee their compatibility with eBay Motors, they’re a godsend for almost everything eBay related.

The concept behind a sniping service is easy: you tell it how much you’re willing to bid and it does the dirty work. You don’t have to worry about your internet going out for a couple seconds or having to re-login to eBay. It bids for you from one of its many servers with 1-3 seconds remaining on the auction. Gixen is one of the better known services, for those of you who are interested.

The theoretical part is a bit trickier, but not much. The biggest piece of leverage you have as a bidder in an auction is disguising your true intentions. When you place a bid, regardless of the size, you’ve expressed an underlying interest in the auction and you’ve informed anyone else watching that particular auction. Buyers, knowing that 10 other people have expressed interest, are more willing to increase the maximum size of their bid to guarantee a successful bid. In short, it’s going to cost the winning bidder more money.

When you use a sniping service, or simply wait until the final moments of an auction, you’re disguising your intentions. No one except the seller knows that you’re watching the auction, and thus, can’t adapt their bids. In theory, the bidders already committed to the auction do not put in their true maximum bid and you swoop in at the last second and steal a deal. If the other bidders aren’t cursing at their computer screens for not putting in an extra $500, you haven’t correctly executed the snipe.

Another benefit of waiting until the last moments is fraud prevention. Sellers as a whole can be a bastardly group that’ll take advantage of you for every last penny. If you put in your maximum bid with 10 days left on the auction, the seller’s liable to ask a friend to slowly bid up the auction at relatively small increments. When you return to finalize your transaction with 5 minutes left, you find that you’re not the high-bidder anymore and add an extra $500 to your bid and eventually win.

Not only has the seller taken you for an extra $500, but you’ve failed to realize the true auction price of the item. If the only other bids were the non-legitimate bids, the final price could be inflated thousands of dollars.

TIP: Never publicize your intentions in an open auction by bidding early.

Step By Step Checklist: Before Bidding

Filed under Step By Steps by staff on March 26, 2010 at 6:22 pm {one comment}

There are a few steps you should follow before even thinking about bidding on eBay Motors.

Check To Make Sure The Owner Will Ship To Canada:

Seems fairly self-explanatory and eBay has measures in place to ensure you don’t bid on a vehicle that’s not available in your country, but it’s better safe than sorry.

This, along with the all important PAYMENT METHODS, are located to the right of the listing.

Paying with CASH may seem easier, but even with an additional written contract, you’re putting yourself at risk.

Understand Where The Vehicle is Located

Every jurisdiction, especially the United States of America, has a different amounts of red-tape. As discussed here, when buying and importing a vehicle from America, there can be quite a few unforeseen costs.

Ask for the Vehicle Model and/or VIN Number

After you acquire it, make absolutely sure that the vehicle is ADMISSIBLE to CANADA.

Contact a Local Dealership and Ask Whether Or Not There Are Any Outstanding Recall Orders and Their Estimated Cost

Recall Orders are nothing but trouble, although you can still save money. If you can avoid purchasing a car with an outstanding recall notice, you’ll save money. Many manufacturers require that all work be done at their authorized dealerships — this hikes up prices, more than a couple cents.

Check To See What Minor Fixes Are Required For Compliance (and their Estimated Cost)

Maybe you’ll need some day-time running lights, or Child Tether additions. The Electronic Immobilization System update denoted by [EIS] will also set you back more than a couple bucks.

Discuss With the Seller His History of Selling to Canadians

Has the seller sold to Canada before?
Has he experienced problems?
Is he a dealership?
Can he get you temporary tags for his State?
Can he put you in touch with someone that’ll facilitate a transfer of ownership as your power of attorney.

The Actual Car & What You Should Know

First thing you should do is Check the VIN number against a registry. eBay Motors has an agreement with CarFax that’ll get you free or cheap reports on the vehicle you’re interested in purchasing.
Secondly, GOOGLE: “Common Problems With……” and Insert the Name of your car. You’ll find the same problems occur over and over again, even if they’re just as simple as quickly fading mirrors. Make a note of these problems and ask the seller about that particular problem. REMEMBER: If you don’t ask, they don’t have to tell. Get their answers in writing or at the very least via eBay’s messaging system.

You’ll Want Pictures and Confirmation of…

The more pictures, the better. If someone isn’t willing to take decent pictures of a car with a 20K price-tag, don’t even bother — Just walk away, as painful as it may be. While Feedback is king (never buy from someone with low-feedback unless you’re absolutely certain,) Photos are a close second
PICTURES OF TIRE WEAR: Alignment and Suspension Issues will show up first here. What kind of tires are on the vehicle? Name brand? Mismatched?
PICTURES OF SEALS: Seals around the Windshield and Doors do a better job telling the story of a car than shiny photos of the exterior.
AN ANGLED PHOTO OF THE CAR THAT SHOWS BODY LINES: You need pictures of both sides of the car. The Body Lines should be STRAIGHT! Damage often shows through on these angled shots. Are there any ripples in the reflection?
QUALITY COLOUR IN THE PHOTOS: You need to be able to tell whether or not the COLOR of the Quarter-Panel matches the Fender, etc. The color should be the same all the way through.
HIGH QUALITY PHOTOS OF GAPS BETWEEN DOORS: Uneven Gaps often mean the car has been in an accident and since repaired.
SHOW ME THE SMOKE: This is often-overlooked, but ask the seller to take a picture of the car’s exhaust while running. Does it look good or does it look like she’s burnin’ oil?
PICTURE OF THE ENGINE: Your basically test of how the engine looks and upkeep will do. Remember to always consider the odometer readings when considering photos ( Is the engine-top overly dirty? Are the battery terminals badly corroded? Maybe even ask for a shot of the Oil-tank with the cap off and in plain view. You can clean the outside, but build-ups are much tougher to clean out and off the underside of the cap.
PICTURES OF THE BRAKES AND SHOCK ABSORBERS: Maybe this isn’t feasible, maybe it is.
The INTERIOR: Any noticeable wear on the driver’s side? What about the Steering wheel? Does it fit with the odometer readings?
THE DASH With The Lights On: To ensure all electrical systems are functioning, and the odometer reads as reported.
The TRUNK and OPEN DOORS: Great places to spot fixes and multiple paint jobs. Always request these tricky areas.
THE INTERIOR WITH THE SEAT BELTS FASTENED: Knowing that these things work is a good thing, eh?
A General Interior and Exterior Shot showing Car Condition — Make Sure the Windshields are in tact and the Mirrors are in good condition. Just an overall feel for the car.

Agreeing to a Third-Party Inspection

Ebay partnered up with Canadian Tire and various Shops in the USA in order to provide these services at a discounted cost. The benefit of getting it done through eBay is that it’s on-record — If someone screws you, you can fall back to eBay and their limited $50,000 Insurance Policy.

Figure Out Everything Before You Even Bid

Follow through every step of the import procedure and know what it’s going to cost. Understand the added costs and your responsibility as the buyer.

How Exactly Is The Payment System Going To Work?

There’s a sweetspot for each car deal and it’s your job to find it. Each party has to balance the risk of Deposit vs. Faxing Over a Copy of the Title for Import/Export purposes.

Work with the dealer and see if you can agree to a number that works for both of you. You’ll want to pay this original deposit through a redeemable source, just in case the seller is less than trustworthy. A quick call to the credit card company or paypal generally gets the job done in case of fraud.