GM to start selling cars on ebay?

Jennifer McClelland | RSS | 4 Comments

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It looks like GM has found a way to sell some of its cars that may not have been able to be sold otherwise. Through a program with Ebay, GM in California only at this time, will begin selling new cars through the auction site.

The sale is set to start tomorrow on the site and GM is hoping to drum up some business.

Automobiles on the site will not be set up like an auction. They will be set up at buy it now fixed pricing with a “Submit Best Offer” button attached. You can submit your best offer for the car and the dealer can either choose to accept or reject it.

While the program is only for California buyers right now, it could spread nationwide as early as September if it is a successful venture for the company.

I think that this could be a good thing for buyers who are looking for a GM car. After all, it takes a lot of the pressure of going into a dealership and haggling away. Some people find haggling prices to be fun, I find it to be stressful and embarrassing. This way you can tell the dealership what you are willing to pay for the car and they can either accept your offer or not. I prefer this to having to hear a lengthy sales pitch about a car that I don’t want (this happened when I walked into a dealership wanting to ask about a smaller car and the salesman tried and tried to upsell me to the larger sedan. I want a smaller car because I don’t like large cars).

Of the GM brands left standing, Cadalliac will not be participating in the program. I suppose they find these cars to bee too valuable to go onto ebay? Buick will be participating, though. And even though it was supposed to die along with the “old” GM, Pontiac cars that are left overs will also be joining in on the program.

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  1. GM to start selling cars on ebay! That is good news!

  2. I honestly don’t think this will help at all..they can’t sell in person. How do they expect to sell it via an automated service?

  3. Ebay + GM = Maybe. Personally, I think it will help sales but then it may hurt future pricing power on new vehicles. It would however be a great outlet to sell used/leased cars onto the market.

  4. I think the sale of vehicles online will probably hurt dealers who are especially skilled in negotiating terms in the barter transaction.

    When thinking about the issue, it’s useful to separate out the players. The dealers aren’t General Motors corporation employees. They’re franchised, or they have some other agreement. This deal could hurt dealers, while benefiting GM corporation. I’m not certain of that claim, but it would be worth investigating.

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