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I've purchased two cars on ebay...a 99 M Roadster in late 2001 and an 03 Z4 3.0 in late 2003.
I flew to Dallas to pick up the '99 after winning the bid online. There was something about the car upon arrival that turned me off...rear bumper gaps agains rear quarter panels. No issue on carfax reported (big surpirse). Car was otherwise very clean and looked great. I had flown out with the intention that I would fly home if not satisfied.
I talked to the seller (dealer) and explained that I was having second thoughts. The dealer was more than accomidating, offering to discount the car etc. I declined his offer and he ended up writing me a check for $500 toward my airfare and offered to pay for a hotel overnight. He had excellent feedback on ebay and didn't want an unhappy buyer writing something negative.
I ended up flying to OKC from Dallas and purchased another M roadster that bidding had ended on but the reserve hadn't been met. IIRC, I purchased the car for $26.8K and sold it in Fall of 2003 for $23.5K.
The Z4 came out of New Jersey in late December of 2003 with 5300 miles. Z4's were love it or hate it at the time coming on the heels of the retro look of the Z3. The car was purchased new in May of 2003 with a sticker price of $47K. I paid $30.5K plus $700 to have it shipped to FL.
The car was great but did have minor curb rash on one wheel and more rock chips on the front than I'd have liked. I spent $75 on the wheel and pulled the front bumper off for a respray ($300). The car ran and looked great and still had 3.5 years of warranty. I drove the car until fall of 2007 and sold it to a coworker for $25K.
Overall, I wouldn't hestitate to use ebay as a place to purchase a car but would be more inclined to buy newer cars with less history. I agree that the car should be under market value due to the risk of buying site unseen.
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