Yahoo Autos Five Holes in eBay's Vehicle Protection Program
Many car shoppers who use eBay are comforted by the shield that appears on most ads on the site, with the following language: “Guarantee: Vehicle Purchase Protection. Covers up to $100,000 when your transaction is completed through eBay.” Few people read the fine print of the restrictions which apply to the Vehicle Protection Program. Here are just five scenarios where coverage would be denied by VPP.
Damage to a vehicle more than ten model years old. VPP allows for buyers to make claims for undisclosed damage to a vehicle they bought on eBay – but VPP draws the line at vehicles which are ten years old. Undisclosed damage on that 2008 Explorer? File a claim! Oh, it’s a 2007? Too bad – no coverage for you. (“Not Covered,” rule #1.)
“Cosmetic” damage, according to the VPP rules, includes any complaints regarding paint. You bought a car off of eBay and discovered – upon delivery – that the paint was peeling off in sheets? That’s cosmetic and it’s not covered. (Rule # 6.)
There is no coverage for “Misstatements about the type of title brand, for a vehicle listed with anything but a ‘clear’ title.” You bought a car which was not listed with a “clear” title. The seller said that it was branded as a Lemon Law buyback in one of the states which brands titles that way. Upon delivery, you see that the title is actually branded “Rebuilt Salvage.” Tough luck. (Rule #11.)
You bought a car which was listed as having a branded title – say, “Rebuilt Salvage.” The seller ships you the car but no title. You have no claim here since the title was not advertised as “clear.” It is unclear why, but the VPP folks appear to believe that buyers of cars with unclear titles don’t deserve the same treatment as people who buy cars with clear titles. (Rule #12.)
You buy a car and the seller ships you the car and a title which has not been signed. Even if the seller refuses to sign the title, VPP offers no protection. And this rule applies even to cars advertised with “clear” titles. It is difficult to understand this distinction. In most states, a buyer would be hard-pressed to title the vehicle with an unsigned title from the seller. (Rule #13.)
There are more, but you get the picture. Shoppers on eBay need to familiarize themselves with the rules of the site, including the rules and application of the Vehicle Purchase Protection. Among other things, eBay carefully points out two things about VPP. 1) It is not an insurance policy. This, even though it appears to compensate certain individuals who suffer specified casualties – and appears to deny claims made by claimants in the same manner of insurance companies. And, 2) VPP is managed by an administrator “not affiliated with eBay, Inc.”
Perhaps most important is the admonition at the bottom of the VPP page of rules.
“eBay may terminate VPP or modify these Terms and Conditions with or without notice to you. The Terms and Conditions of the VPP program specified on this page at the time that you purchased your vehicle will apply. It is your responsibility to periodically review these Terms and Conditions to ensure you are familiar with them at the time of your purchase.”
The lesson? Do your homework and understand what is, and is not, covered before you bid.
Steve Lehto is a writer and attorney from Michigan. He specializes in Lemon Law and frequently writes about cars and the law. His most recent books include Preston Tucker and His Battle to Build the Car of Tomorrow, and Dodge Daytona and Plymouth Superbird: Design, Development, Production and Competition. He also has a podcast where he talks about these things.
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