General Motors to Test Selling Cars Online Through eBay

•  
•  
• Share
•  
• Email

General Motors to Test Selling Cars Online Through eBay

August 12, 2009
By the ZippyCart Shopping Carts Content Team

Beginning this week, hundreds of GM dealers in California will offer users the ability to browse online showrooms at gm.ebay.com where there will be over 20,000 new cars, crossovers, and trucks for sale. This will be a pilot program that Ebay Motors and GM are very optimistic about as it will give consumers direct contact with 225 dealers. Traditionally Ebay has focused on auction based selling, but has added a lot of “fixed price” sales which almost account for half of all transactions. Consumers have been accustomed to buying used vehicles online while buying new vehicles direct from dealers. Most people have historically preferred to go into the dealership because they can test drive the car and buy it in person as it is one of the biggest purchases most people make outside of a home.

Buying a vehicle in person however can be very stressful so it may make consumers more comfortable to purchase online after all. If for any reason they want to come into the dealership to see a car that they want online, they can before they finalize their decision. The collaborative site also will provide comparison pricing across dealerships, helpful tips for buyers, and trade-in values. It will also be able to determine if the owner’s existing vehicle qualifies for the federal “cash for clunkers” program. With Ebay and GM both struggling financially, they are hoping this will be a success for both parties. GM had to claim bankruptcy back in June and Ebay reported almost a 30% drop in year over year income for the second quarter. The pilot program will only run until September 8th but if it goes well it could easily be extended to run nationwide.