eBay and GM launch joint venture

eBay and GM have created a new website where car buyers can haggle with dealers over the purchase of a new vehicle. The promotion runs until Sept 8.

The Financial Times reports the launch of the new venture, which will take place in California on Tuesday. The promotion is intended to broaden the use of the Internet for used-car purchases. Mark LaNeve, GM’s North American sales chief, insists the move was not designed to bypass dealers. “The dealership will always be the end point of the transaction," he said. There are about 225 Chevrolet, Buick, GMC and Pontiac dealers participating via a new car shopping website.

The site will offer the usual eBay Motors features, such as “Buy it Now”, where customers agree to pay an advertised price, and a “Best Offer” option, where buyers indicate the price they are willing to pay, then negotiate online with the dealer. “Some people are very comfortable negotiating and transacting at arm’s length, and then just going to the dealership to pick up the car,” Rob Chesney, eBay Motors’ vice-president, said. Buyers will be able to arrange financing and payment for vehicles and comparison shop between dealers. Potential buyers will also be able to find out the value of a trade-in. This includes whether the car qualifies for the US government’s cash-for-clunkers incentives. The companies decided to run the trial in California because of the state's many tech-savvy consumers. eBay users who live outside California can contact dealers to see if they're willing to sell and ship vehicles to them.