Our eBay Motors Adventure

by Darla Dernovsek

Buying a car through an eBay auction is undoubtedly an adventure. Whether our eBay adventure was worth the price is still open to debate.

To be fair, I should point out that eBay Motors offers a variety of tools to help buyers make wise purchases. Unwise buyers who fail to apply what they learn from these tools--buyers like us, that is--are acting at their own risk.

Our eBay Motors experience begins in April 2003 when our 18-year-old son, Joel, wants to buy his first vehicle. My husband, Michael, and I agree to chip in. Unfortunately, the vehicles within his price range either fail to meet our standards for safety and reasonable gas mileage, or fail to appeal to a teenager.

We advise Joel to use the Internet to expand his search to a broader geographic area. Just a year earlier, we used cars.com to find a good deal on a late-model Ford truck at a used-car dealership about 80 miles away. Even if our son is unable to locate a similar bargain, we reason that he can gather information about costs, features, and availability.

We forget to factor in a teenager's fearless approach to technology. Soon, Joel is asking for our help so he can use eBay to bid on a 1996 Mustang SRS with more than 100,000 miles.

"Yikes," I say to Michael.

"I know," he replies.

Searching in cyberspace

Bidding on a high-mileage car in cyberspace seems risky. When we bought the truck through cars.com, we deliberately restricted our search to dealers within 100 miles so we could drive to the dealership to look it over, take a test drive, and kick the tires before money changed hands. We also were searching for low-mileage vehicles with the original warranty still in effect.

But the Mustang is in Texas and the seller requires a $1,000 down payment 24 hours after the bidding ends. That means we will be required to send a down payment before we view the car.

We need more information. The seller has not set a "reserve" amount--eBay terminology for a minimum bid that must be met--so the highest bidder will purchase the Mustang. Further research by Joel shows that a price of $3,000 to $3,500 will be roughly within the range of the car's market value, based on free pricing tools found on sites like cars.com, Edmunds.com, and Kelley Blue Book.

Joel points out that the Mustang qualifies for eBay's free 30-day Limited Power Train Warranty for selected used cars with less than 125,000 miles. He also learns that eBay will connect us with a qualified vehicle inspector in the Houston area who will view the car and file a report for a fee of $80 to $100, depending on the type of inspection provided. Finally, Joel checks out the seller, a used car dealer in the Houston area, by reviewing comments made by other buyers.

Buyers can access shipping services through eBay, but Joel thinks driving the car cross-country sounds like fun. Joel reminds me that he wanted a trip to Texas as a high-school graduation present. When I protest that traveling to Texas won't fit into our family's hectic schedule, he counters that a discount flight to Houston followed by a 20-hour marathon drive back to Wisconsin will be a great opportunity for mother-son bonding.

We cave and let Joel enter a bid at $1,250. We are all drawn into the excitement as the bidding slowly climbs. As the auction draws to a close at 10 p.m. on a weekday, Joel is the leading bidder at $3,300. From our upstairs bedroom, we listen as Joel sits downstairs at the computer reading off the countdown at the top of his lungs: "Five, four, three, two, one…..WOOOOO HOOOOO!"

The next morning, I spend $315 online on Joel's graduation present: two airline tickets from Milwaukee to Houston. Then I call the dealer to get an extension on the down payment deadline to allow time for an inspection. The dealer is accommodating, assuring us that inspections help everyone understand what is involved in online used-car sales.

Taking a wrong turn

Three days later, the inspection firm provides a thorough and informative report. Although no major troubles are apparent, the report warns that a rough idle and other troublesome signs may indicate that the Mustang is on the verge of becoming "a money pit." We encourage Joel to abandon the Mustang and remind him that he will be responsible for any repairs. He reminds us that we promised to abide by his decision. Entranced by the Mustang, Joel decides to go for it.

It's time to wire the down payment. eBay advises buyers to avoid using cash transfer services such as Western Union. Instead, it directs buyers to safer alternatives, including wire transfers through a reputable financial institution such as a credit union. Credit unions also offer used car loans at highly competitive rates.

Two weeks later, we fly to Texas on a weekday morning. By afternoon a taxi is depositing us at the dealer's door, where mechanics are just finishing a tune-up to address the rough idle. Everything seems in working order, although the clutch is a bit stiff. We hand over a cashier's check, complete the paperwork, and start the uneventful drive through four states north to Wisconsin.

That's where, about five weeks later, our eBay experience takes the wrong turn. The clutch breaks. Joel and Michael seem to enjoy dismantling the Mustang and installing the new clutch, which costs about $250. A few weeks later, Joel finds a way to make the Mustang produce a loud "VAROOM" when the car starts and at other opportune moments. Michael warns him that he is placing extra stress on the engine without knowing its full history.

Two months later, the connecting rod breaks and then bursts through the oil pan with a bang. For readers who aren't mechanically inclined, that's roughly the equivalent of losing a wall on a house and expecting the roof to stay in place. The engine and various other parts are replaced over a two-week period, with Joel and Michael spending every spare minute in the garage. By doing most of the work themselves, they hold the cost down to about $1,500, depleting Joel's summer earnings.

What we learned

Our $3,300 bargain is now an expensive $5,250 learning experience, including the cost of repairs, fees, and sales tax. Even Joel--who still loves the Mustang--reluctantly admits that given the chance to do it over, he would take the inspector's report seriously and abandon the purchase.

With the new engine in place, we're better prepared to answer common questions about our eBay experience.

Will we buy another car over the Internet? Yes, but only if the vehicle is within reasonable driving range. Traveling to and from Texas was a hassle. Will we use eBay again? Yes, but next time we'll pay more attention to the inspection and other tools that can be accessed through eBay. If a purchase lacks promise, we'll abandon it. Can you save money on the Internet? Yes and no. Our truck purchase through cars.com is still a great deal. The Mustang is not. Was it worth it? Singing along to the radio while Joel drove the Mustang through the Texas moonlight was priceless. Working on repairs brought Michael and Joel closer together. Joel learned the meaning of "buyer beware." From a monetary perspective, however, it's a loss. Do cars that become "a money pit" continue to suck up money even after repairs are completed? We sure hope not.

September 22, 2003