August 11, 2009

Necessity, Invention? [7:13 am]

Or gimmick? G.M. to Start Selling on eBay on Tuesday (pdf)

The program is one way for consumers to receive discounts on cars without dealing with the haggling often associated with buying cars through dealerships. The partnership with eBay is also a crucial part of G.M.’s effort to return to profitability after five years of heavy losses and to remain the new-vehicle sales leader in the United States.

Unlike a typical eBay sale, vehicles will not be auctioned to the highest bidder but rather listed at a “buy it now” price equal to G.M.’s supplier price. Shoppers also can submit a lower offer that the dealer can accept or reject.

“It’s very attractive to a core group of customers who don’t really care for the negotiating experience at a dealership but do want to negotiate,” said Mark LaNeve, G.M.’s vice president for United States sales. “Now they can do that anonymously online. So we think it’s going to give us some opportunities we didn’t have before.”

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