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EBay (NASDAQ:EBAY) is making it easier to buy and sell a car with Secure Purchase, a new option that verifies buyers and sellers, guarantees accuracy of the listing, and provides a secure platform for transactions.
“Secure Purchase removes complexity and adds an extra layer of assurance for users on the marketplace. Shoppers can find exactly the vehicle they want at the right price from anywhere in the U.S., while sellers can close deals with complete confidence. And there’s no visit to the DMV,” eBay General Manager of Vehicles said in a statement.
With more than three-quarters of all vehicle transactions on eBay (NASDAQ:EBAY) occurring across state lines, Secure Purchase automates vehicle transfer, provides financing and insurance options, and allows buyers and sellers to digitally sign required documents. The platform will enable buyers to skip the DMV by arranging for plates and titles to be transferred at the same time.
Enhancing security for car shoppers addresses both concerns about digital security and eBay Motors’ (NASDAQ:EBAY) increasing popularity as a place for car buyers and sellers. The site currently hosts over 110M listings and 11M unique buyers each month, with a vehicle sold every 60 seconds.
While the news has had little positive impact on eBay (EBAY) shares, competitors like CarMax (KMX), Carvana (CVNA), CarGurus (CARG), and AutoNation (AN) have experienced moderate selling pressure, all of which are now trading at least 1% lower with losses amplified by Tuesday’s quarterly results from Lithia Motors (LAD) and Asbury Automotive (ABG).