GM seeing mixed results with eBay program

GM seeing mixed results with eBay program

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By Drew Johnson

General Motors has become one of the first automakers to use eBay as an avenue for new vehicle sales, but the Detroit automaker has seen a mixed bag of results during the program’s first few days. GM’s eBay experiment — which includes 225 California dealers — launched August 11th and will run through September 8th.
According to Automotive News, GM dealers have listed 16,228 vehicles on eBay since August 11th, but have only recorded 45 sales. However, the program has actually generate quite a few more sales than that as many shoppers are viewing the vehicles online before buying them in person.
“I’ve sold some vehicles to people that saw the vehicles on eBay, but they didn’t buy them on eBay. They called, came in and bought them,” Mark Borjan, a Buick-Pontiac-GMC dealer, told Automotive News.
GM’s ‘Buy It Now’ option has also proven to be an early flop. So far no customers have opted for the Buy It Now feature, with high prices a likely culprit. According to Edmunds, GM’s Buy It Now prices average about 2 percent above the average market price.
However, GM’s eBay site is drawing interest, with 630,000 visits in the first week. The results were particularly good for GM’s California efforts, with eBay price searches up 10 percent there. GM’s market share in California is 13 percent, compared to its national share of 19.6 percent. Unfortunately for GM, the Pontiac G8 was the most searched nameplate in California, a model that is set to ride off into the sunset after the 2009 model year.
21 COMMENTS
1. DenverGuy217342 days ago
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  Unfortunately for GM, the Pontiac G8 was the most searched nameplate in California, a model that is set to ride off into the sunset after the 2009 model year.
  
  ARGH! Yeh GM I wonder how many people searched out an Aveo
  
  Reply
2. Sgt Pepper342 days ago
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  If the barrel of oil keeps climbing i’m sure searches for the Aveo will go up too.
  
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3. mayer_ray_nagin342 days ago
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  So, they attribute “looking at the cars on eBay” to getting people in the showroom. I guess they assume the same people would not have looked at the GM website, carsdirect, autotrader, LLN, etc. No no no, it was the eBay visit that got them into the showrooms.
  
  Typical corporate BS …..
  …….. “I swear despite the mediocre results my grand idea was a resounding success!
  …….. All those people in the showroom are because of me!!!!!”
  
  Meh
  
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4. JakeK66342 days ago
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  “GM’s ‘Buy It Now’ option has also proven to be an early flop. So far no customers have opted for the Buy It Now feature, with high prices a likely culprit. According to Edmunds, GM’s Buy It Now prices average about 2 percent above the average market price.”
  
  I finally have some faith in humanity
  
  Reply
5. A4342 days ago
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  Ebay Motors is a sorry excuse to overpay for something you can haggle for if you get off your lazy ass.
  
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6. Bosley342 days ago
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  Haggling in person is a large part of showing up at a dealership. Not too mention that things often look different in person than in a photograph. Things like the look of a paint colour can change drastically, not too mention the entire look of the vehicle in person because of scale and perspective.
  So I’m not surprised online sales aren’t living up to expectations. But the website should at least act like an online catalog that helps to bring some more people into showrooms in person. But it’s definitely NOT the eBay page that is causing it all.
  
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7. Bosley342 days ago
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  Plus, the high cost of cars these days makes most people (well, me at least) want to be sure that they are making the right purchase. Being there in person is the best way to do that, imho…..
  
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8. leftwingagenda342 days ago
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  this would work much better if the buy it now price was either invoice, or the bottom line lowest price the dealer can accept…kind of a no-haggle buy it now price…that would result in more ebay sales…unfortunately the dealers did exactly what i hoped they wouldn’t, which is set the buy it now at a level nobody in their right mind would pay…greedy dumbasses…
  
  as mayer pointed out, anybody looking at ebay already has access to half a dozen different ways to get a sense for the real world price for the car…don’t presume the internet user is a dumbass that will click buy it now and pay 2% more for the vehicle…
  
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9. Borat342 days ago
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  Now, how one of those 45 schmacks feel? Hopefully nothing. Cow is not unhappy because she is a cow? Obviously it has to be room for schmacks under the sun, but to dismay of GM management, there are very few who stooped to their level of dumbness.
  
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10. AutoCritical342 days ago
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  Something about PayPal increasing their fees?
  
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11. johnnycanuck342 days ago
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  Might as well have called it the ‘Ignore It Now’ price.
  
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12. Mutant@DCX342 days ago
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  They should experiment with no reserve on every car for a month. GM would rule sales.
  
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13. leftwingagenda342 days ago
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  if GM experimented with that, the dealers would revolt…imagine if GM suddenly became a sales competitor by offering direct sales at reduced cost while bypassing the dealer network…oh boy…riots!
  
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14. armstealer342 days ago
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  Just for kicks, look up completed auctions of Pontiac Solstices. I was thinking of listing my ’06, but after seeing those fantabulous results…
  …its no wonder GM hasn’t sold any. ebay is dead.
  
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15. Borat341 days ago
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  It was all done within one state and one state only and with agreement with ALL dealers. You know the price could not possibly be higher. Buyer be ware.
  
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16. jbulth39341 days ago
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  Leftwing, the dealers are not setting the eBay prices. GM is. If someone buys the car over ebay they are directed to the dealership who has that car in stock.
  
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17. velvet6gt340 days ago
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  So… GM is adapting to the dealers style of “selling”, screw the public. A dealer in Avondale, AZ had a $1000 markup on the new Camaros, but has since raised it to $4000. They cried when they couldn’t sell cars, and now that they have one popular model they want to make up for it by jacking up the prices. Hasn’t anyone heard of volume selling? They deserve what they get.
  
  My wife likes the Camaro, but it will never happen. The Challenger looked good, but Dodge raised the prices. That sure will sell more cars. I guess that leaves the old dependable Mustang.
  
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18. Noah340 days ago
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  I don’t see how this can work. Once people see the price range of a car that they are willing to sell it for, then by and large, that will be the going price. I doubt competition etc will change this much
  
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19. beatusmongous340 days ago
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  Jbulth, that’s exactly what LeftWing was talking about. If GM left the reserve off, the buyers would effectively be setting the prices, and the dealers would have no say in the matter. Giving that kind of power to the buyers would make for some really upset dealers that could possibly lose their shirts through eBay.
  
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20. h82w8340 days ago
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  @ beatusmongous and leftwingagenda:
  
  GM could let the market set the prices with no reserves and not piss of the dealers by making up for any difference between dealer cost and an agreed upon mark up.
  
  I like this idea MUCH more than the fiasco that c4c has become.
  
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21. CajuRican339 days ago
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  @leftwingagenda
  
  “don’t presume the internet user is a dumbass that will click buy it now and pay 2% more for the vehicle…”
  
  I would think, if anything, the internet user is quite a bit more savvy than the typical customer that walks through the doors. They should be trying to lure the internet shopper with a lower “Buy It Now” price.
  
  Reply
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