eBay Motors is expanding to include new cars from GM in a trial to start in California tomorrow:
The trial is part of Detroit-based GM’s turnaround plan, making more official a practice some of its dealers had already participated in on their own. It expands an existing partnership covering GM certified used vehicles sold through eBay . . .
Starting Tuesday, eBay visitors will be able to visit Web pages like gm.ebay.com and chevy.ebay.com, where they can browse new 2008 and 2009 vehicles, ask dealers questions and figure out financing . . .
Car buyers will be able to choose between the two standard options currently offered on eBay Motors: Negotiating a price with a dealer through the site or purchasing right then at a fixed price. Cars will be picked up at the dealerships.
This will likely work because cars are a commodity (literally) with only a few variables to select (sunroof, trim, etc). A test drive will probably still be required, but a buyer can do that anywhere and then buy the car online.
This scenario creates an interesting categorization challenge: Is this e-commerce or still a local purchase?
Screenwerk 
August 10, 2009 at 10:24 pm
It’s similar to buy online and pickup in-store. But if they have to sign for financing at the dealership then I would consider it a local sale. If they pay for it thorugh the site then I would consider it an online sale.
August 10, 2009 at 10:29 pm
The financing issue is the wild card in my mind.
August 11, 2009 at 8:04 am
It seems like GM is planning to get double hit 1) eBay and—> 2) PayPal. eBay and PayPal are most famous hiking their fees. No matter how much volume discount eBay or Paypal is going to offer to GM. GM probably will be charged for all cars to get listed (Listing Fees), no matter if it sells or not. Once sold, GM has to pay heavy Final Value Fee plus paypal fee. This is on top of the dealer commision.
Regarding Buy It Now option, customer has to very careful for buying any car by viewing fancy picture rather than without looking under-the-hood, cranking the engine and without having test-ride. The customer can end-up miserable with after sale minor tune-up issues. All GM subsidaries are bankrupt, getting parts and proper services will be another issue.
In case of best offer, eBay with a greed of getting their fees, will reveal buyers contact information to GM. The customer will receive endless follow-up calls pushing the car sell at whatever the price. Successful customers have to think about insurance package on new car too!
Cars are not like softwares, browsing inventory of any car delear on laptop is absolutely different than actually buying a car after test-ride. I guess they have to rephrase the sentence to “As the dealer showroom shrinks to the laptop from the parking lot…” I guess, buyers have to extra careful against eBay and Paypal greed, plus GM Dealers pushing the sell by hook or cook. The web-site http://gm.ebay.com/ga3/search/gmprogram is not fully functional.
August 11, 2009 at 1:59 pm
[…] GM-eBay: Buy Online, Pick Up at Dealer « ScreenwerkStarting Tuesday, eBay visitors will be able to visit Web pages like gm.ebay.com and chevy.ebay.com, where they can browse new 2008 and 2009 vehicles, ask dealers questions and figure out financing . …Screenwerk – https://gesterling.wordpress.com/ […]
August 11, 2009 at 2:00 pm
[…] GM-eBay: Buy Online, Pick Up at Dealer « ScreenwerkStarting Tuesday, eBay visitors will be able to visit Web pages like gm.ebay.com and chevy.ebay.com, where they can browse new 2008 and 2009 vehicles, ask dealers questions and figure out financing . …Screenwerk – https://gesterling.wordpress.com/||| […]
August 12, 2009 at 2:45 am
According to Alex8155 “GM probably will be charged for all cars to get listed (Listing Fees), no matter if it sells or not. Once sold, GM has to pay heavy Final Value Fee plus paypal fee. This is on top of the dealer commission….”
Actually these over-heads will be passed on to the buyers. buyers will end-up paying unnecessary price hike of minimum $2000 or more.
so final results will be:
1) Buyers has to pay minimum $2000 or more while purchasing from eBay GM instead of getting walk-in cash discount of minimum $1200~$1800.
2) GM is cutting down dealership by 40% who is going to provide services after sales? As of now, 225 of 250 dealers in the state of California participated, and later on it result in vanishing physical identities of Authorized GM Dealers. The whole picture is very gloomy.
3) In critical time for the company like GM, and hit by the recession, GM has tied with company eBay whose market reputation is not really as good as Amazon. eBay and PayPal to gather are involved in tons of insider trading, insider auto bot bidding to get higher final value fees and higher percentage of comission. eBay and PayPal are involved in tons of scams, that reader of this post would like to look at the web-site called paypalsucks (dot) com. You will probably never find a site like this for any other good reputed online marketing or auction companies. Any financial scam by eBay or PayPal definitely damage GM Market Reputation too. I am worried coz I have GM, and I LUV GM.
There were plenty of better choices like Autotrader or Cars available for GM other than eBay where most of the visitors concern is to look for something cheap.
In name of GM, eBay and PayPal will definitely going to prosper themselves by milking the cow and their customers with other products.
Gm has to very sure that GM customer information is not leaked to any other competitive automobile companies for just greed of money.
4) eBay revenue went up during last year due to hike in their fees, plus insider mafia activities of capturing someone’s well-reputed business items by kicking out, or blocking original player, or buying his well developed eBay account. eBay is highly influenced for selling out their members information and data statistics for few hundred of bucks.
5) According to Don Folk, a Chevrolet dealer. “What it always boils down to, is that before making a major purchase like an automobile … a person would want to get in the vehicle [and] drive the vehicle,” he said. “You’re still going to have to touch the metal.”
Adobe and probably Microsoft may have some success with eBay for software. You simply can not compare Automobiles with software. Automobile you always wanna have a ride, touch, see and feel.
6) Getting the parts will be the pain for buyers. Most of the parts available on eBay are not authentic, but fake, imitated like original made in Taiwan, not really made in US. Normally Taiwan parts runs when you replace it, but no one can say when it gonna break.
Most of the parts makers, parts suppliers, dealers and virtually every company in the automotive sector are out of business now in US.
7) Buyer have to be extra cautious coz all information about the car he or she is planning to buy from GM eBay is already available to many people before he or she actually purchase it.
8) eBay and PayPal policy about money refund is also not very clear.
9) In case of refund. Who PayPal is going to support GM (with a greed of commission) or a buyer?
10) Buyer has to work out for competitive insurance quote too!
So, SMART BUYERS HAS TO THINK MORE THAN TWICE, OR
JUST STAY AWAY!
August 14, 2009 at 7:39 am
Followings are excerpts from other forums posted by others:
Let us have a close look to the lowest priced vehicle listed on GMeBay and other terms and conditions .
2009 Chevrolet Aveo LS US $10,325.00 (Walk-In Lowest Quote for the same so far was US $9625.00)
Plus government fees and taxes, any finance charges, any dealer document preparation charge, and any emission testing charge. These will lead buyers total Cost Of Ownership to $25,500+ approximately.
=>If buyers can negotiate a way better face-to-face than eBay, what is the use of submitting best offer and getting unwanted calls from all possible marketing channels?
Warranty Details
100,000 Mile/5 Year* Transferable Powertrain Limited Warranty plus Roadside Assistance and Courtesy Transportation Programs.
=>Next 5 Year forecast about GM and GM’s Dealer future is full of thunder storms and strong wind waves, which may blew many dealers off the business.
Shipping Details
Delivery options for your vehicle can be arranged between you and the GM dealer you purchase the car from.
Where are these vehicles located?
A: The vehicles that you can select from are located at participating California GM dealerships. By entering your zip code to begin your search, eBay Motors will be able to provide results that show actual vehicles at dealerships in your locale.
=> By entering your zip code, the buyers are revealing their identities. The buyer may be targeted many on-line marketing channels.
How can I pick up my new vehicle?
A: You can pick up your new vehicle at the GM dealership you’ve purchased it from. If the selling dealership is not in your geographical location, you can arrange shipping options with the dealer. As with all eBay transactions, shipping costs are generally the buyer’s responsibility.
=> The buyers may end up to pick up new vehicle from remote and distant located GM Dealers, which adds up higher cost of delivery.
Payment Instructions
If you click on “Buy It Now” or “Make an Offer” you are making an offer to purchase the vehicle at a specified price. Although the selling dealer may confirm that the price is acceptable online, there is no binding agreement to sell you the vehicle until you and the dealer reach final agreement on satisfactory payment arrangements for the vehicle and for delivery. Each dealer may have its own payment terms applicable to the sale of the vehicle. The dealer should contact you if your price is accepted to make these, and potentially other, arrangements. If the dealer does not contact you, GM will follow up with you and facilitate that contact, but you should feel free to contact the dealer yourself to make these arrangements.
=> Under both options, “Buy It Now” and “Make an Offer” do not guaranty buyer that he or she will get the vehicle. These terms looks like a buyer’s trap in GM Dealers Network plus other marketing channels.
Sharing Information with GM Dealers and GM
When you ask a question, submit an offer, or click on Buy It Now for a vehicle listed as part of the GM/eBay new vehicle website, your personal information will be shared with GM and participating Chevrolet, Pontiac, Buick or GMC dealers, who may use your information to communicate with you about your expression of interest and to evaluate the effectiveness of the promotion. It may also be used by our suppliers to provide services. If you have questions please contact GM at 1-866-465-1005 or the selling dealer at the toll free number provided with the vehicle listing.
=> The processes “Buy It Now” and “Make an Offer” look like identity theft, as it does not meet normal standard of online privacy protection. There is no guaranty has been provided so far, either by eBay and PayPal, that your personal and other financial information will not be shared to other marketing channels.
You shouldn’t be surprize if you see any positive feedback (fake, manupluated and insider trading) on eBay that low budget buyer is buying $30,000+ GM Vehicle in one shot. eBay gonna exhibit all sort of dirty tricks here.
The whole game looks like a catch, buyer’s trap, in which buyers may be a victim of many marketing channels.
BUYERS BE CAUTIOUS!
August 30, 2009 at 12:55 am
GMEbay buyers do not seem to be happy at all.
Have a look at following links for buyers feedback:
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I heard that CEO of ebay motors claimed that they are selling a vehicle every single minute, may be a crap or junk!
August 30, 2009 at 5:05 am
While reading other auto forums like car connections or the truth about cars. GM-eBay buyers do not seem to be happy.
Here is some feedback from GM-eBay buyers:
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Is it true that CEO of eBay Motors claimed they are selling cars every single minute???
or they might be selling the crap like this!
September 2, 2009 at 9:05 pm
Temovate…
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June 19, 2010 at 10:19 am
Stumbled upon this (no pun) and glad I did because there’s some great stuff here – but for some reason I can’t subscribe to your feed.
June 19, 2010 at 1:17 pm
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June 19, 2010 at 1:18 pm
Actually… Go to screenwerk.com and subscribe to that feed….
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