Why are iPads so expensive on Ebay?

I am interested in buying one of these devices, but I just don't have the money to buy a new one at this moment. I don't understand why it is impossible to find one for under $500, yet that is what the 16 GB Wi-Fi version costs from Apple. I understand tax adds about $20, but it still should be quite a bit less for a used model.
I want one of these, but it's not easy to swing at $500.

Why are iPads so expensive on Ebay?
Supply and demand, plus it's the only way some international people can buy one at the moment.
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