Starting on Aug. 11, GM became the first auto manufacture to start selling new cars on the auction site eBay. This move comes after the company closed hundreds of dealerships across the country.
GM is currently conducting this test run in California where GM’s 250 dealerships are selling new Buick, Chevrolet, GMC and Pontiac vehicles on co-branded websites including gm.ebay.com, Chevrolet.ebay.com and gmc.ebay.com. People outside of California can also bid, however, they must make arrangements to have the car picked up.
GM hopes that this test will not only make the brand more appealing to younger buyers, but that it will also increase their market share in California, where they are almost 6 percent below the national average.
However, before you begin bidding $5 a new Chevy, keep in mind that there is no true auction or bidding. Unlike the typical eBay sale, vehicles will not be auctioned to the highest bidder. Currently you can choose between negotiating a price with a dealer through the site or purchasing immediately at a “Buy It Now” price.
While this is the automaker’s first attempt to sell new vehicles on eBay, almost all GM dealers nationwide have been using eBay to sell certified pre-owned vehicles. According to the Wall Street Journal, more than 30,000 independent car dealers are using eBay as an alternative sales outlet. In fact, used vehicles and auto parts are eBay’s large single category of goods sold, making up about 27% of all sales.
Other sites that also sell cars online include Craigslist, Autotrader.com and Cars Direct.
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