eBay Motors is launching Local Market, a subscription-based service in which franchised dealers list their used-car lot on the auction-based website.

The service allows dealers to post an unlimited number of units, which will be displayed to eBay buyers within 100 miles of the dealership. Dealers pay a monthly subscription fee of $1,000 and a $50 sales fee for vehicles sold online.

Local Market lets buyers negotiate price. Dealers can accept, reject or counter-offer. Buyers also can negotiate and close the transaction in person at the dealership.

eBay says test results show Local Market benefits dealerships selling newer, used-vehicle inventories that appeal to a variety of consumers.

“What we focus on is where consumer behavior on the Internet is going,” says Rob Chesney, eBay Motors senior director. “You can look anywhere on the Web (and you'll see that) users want more control over the process. They want flexibility and options,” he says “We offer that to both buyers and sellers.”