eBay launched “Secure Purchase” for vehicle transactions, a $25 service powered by its new subsidiary, Caramel Dealer Services LLC, a licensed used vehicle dealer. “From click to curb, everything’s covered,” according to eBay’s press release on Friday.
Secure Purchase manages payment, financing, registration, ownership transfer, and transport in one experience – with some steps being buyer-optional. Caramel Dealer Services partners with national banks and specialty lenders for optional financing, and the protection step offers the option to add an extended warranty offered by independent providers.
Caramel Dealer Services facilitates the transaction when the buyer chooses to finance the vehicle or have Caramel handle the title and registration. In those cases, Caramel Dealer Services acts as the licensed dealer in the sale. Otherwise, buyers will be purchasing the vehicle directly from the seller.
It appears buyers must use Plaid to facilitate payments. Buyers can choose to wire transfer payment to Caramel for transactions under $25,000, or buyers can choose “instant payment” powered by Clerq with a .75% fee. For transactions $25,000 or higher, wire transfer is mandatory.
eBay explained in its press release:
Vehicle transactions can be complicated, especially when they cross state lines. Notably, nearly 80% of purchases on eBay in 2024 involved buyers and sellers in different states. Now, with Secure Purchase, both the seller and buyer are verified, paperwork is automated, and funds are digital and traceable.
Here’s how it works:
Start the checkout: Both the buyer and seller verify their identity and provide basic information about the vehicle being purchased.
Opt into services: The buyer can select their financing, transportation, protection and insurance preferences in a few clicks.
Submit key information: The seller uploads photos of the title, VIN, and odometer reading, all of which are independently verified through national vehicle title databases to ensure accuracy.
Payment and signature: The buyer and seller digitally sign the required documents, then transfer funds through the platform to initiate registration and title transfer.
More information, including FAQs, are available on eBay.com.