CK6Speed

iTrader: (1)

The buy it now option and/or make an offer option are all within the ebay rules. There is nothing wrong with that if that is the way the auction is set up. Even Barret Jackson auctions you can set a reserve if you want. Generally in auctions, when a reserve price is set, it is unknown to the bidder, so bidders are a lot more cautious and that can also drive away potential bidders. So, while the seller is safe in that if the bids don't meet his reserve, he doesn't have to sell. However, that also means a lot of potential bidders may not bid at all. When there is no reserve, it is a two edge sword for the seller in any auction. Those types of auctions attract a lot of bidders as the potentially may get a major bargin. For the seller, this can drive up the price well beyond what he was hoping for, or he may have to sell well below what he was hoping for.

MD350

I agree with Tex, most franchise dealers use Ebay for advertising and set the reserve price above what they have in the unit. This was a mistake on a dealer employee who failed to set a reserve price. Could have been worse, the final bid could have been $40K.

But, overall, you don't see new car franchise dealers on e-bay selling cars under invoice. They do it for advertising, or on a unit that may be an odd color, have an odd package, or could be an aged unit. And they do it for $$$$