Would you buy a new GM off eBay?
By Jason Buckland, Sympatico / MSN Finance
No one gets picked on more in this space than General Motors.
While the recent sins of, say, Chrysler or AIG may be on par – for whatever reason – GM takes it the worst. They’re like Mary-Kate Olsen at the Nathan’s Famous Fourth of July Hot Dog Eating Contest: they can’t win.
But for all its pitfalls, damnit if GM can’t make headlines.
In a bid to give lagging sales mouth-to-mouth, the struggling manufacturer has announced its dealers could soon begin selling new cars through eBay.
CEO Fritz Henderson said GM and the Internet auction site are looking to team up to sell the vehicles using eBay’s traditional bidding system, but dealers could also have the option to set a predetermined “Buy it Now” price buyers could opt for.
And we have to admit, the move shows a heck of lot of ingenuity on the part of GM, who appear now to be realizing the best way to maximize that $2-billion-a-year marketing budget just might be to open up as many avenues as possible for people to buy your cars.
The proposed strategy also springs forth an intriguing debate on the consumer side of things. Would you seriously consider buying a new GM off eBay?
Your traditional car buyer is going to tell you you’d be an idiot to toss thousands at a set of wheels you haven’t even stepped in yet, but is that process really as crucial as it once was?
GM’s virtual showroom is packed full of about three dozen intimate, detailed pictures of each model, and it’s likely their website will soon go the way of Mazda’s, who give you a Whoa-inducing (click 'View Interior') 360-degree online tour of their cars that's genuinely not far removed from actually sitting in the thing yourself.
It’s argued, of course, that’s there’s no substitute for getting the feel of a new car, and that’s certainly right. But that notion may also be a bit misguided. What percentage of car buyers would you say seriously put a considerable amount of stock into how a car performed during its test drive? 15? 20? What’s more, would it not also be fair to say that most new GMs, within the same class and relative specs, now generally perform about the same?
In any case, the absence of a material meeting with your new car appears to be the only downside to the eBay arrangement. You would still be buying from an actual dealer and would have someone in the flesh to contact. Your warranty and feature-customization would, presumably, all be taken care of.
It all sounds very plausible to me, at least. Add to the mix the draw of eBay which – by its nature as an auction site, is designed to land buyers considerable discounts every one in a while – and you’d have to think this move is a good way for GM to get some oomph behind this whole recovery thing they’re trying.
Posted by: Dan B | Jul 13, 2021 9:20:00 AM
There would have to be alot of incentives to intice me.I mean there are great deals to buy used cars off EBay to warrant shipping to Canada. Why would I buy a new car from EBay ,pay their 1300-1500$ freight charge and then another shipping charge to my address,then there is the hassle of dealing with your dealership nearest you who is pissed because you didn't buy the car from them.Used cars on EBay fine,news cars not so much a good idea.When a car company has a reputation for building not the most reliable cars around,would you really buy before you try it out.
Posted by: Peter Burdon | Jul 13, 2021 9:31:29 AM
The first issue is whether or not this is the end of the new car sales persons. If there is no need to negotiate and go through the usual hassle, who needs them. They wil be no more than greeters and delivery people.
The second issue is having bought a new GM car on ebay where do you take it for service? We have three dealers closing in our town and the one remaining says they can't possibly deal with all the service customers. Can you imagine, the dummies who decided we needed four dealers are the same ones deciding who stays and who goes.
Two of the dealers closing just built brand new facilities...ah yes strategic planning.
Posted by: Jossi L | Jul 13, 2021 9:49:06 AM
Wait a second. For those of you who think that being in car sales is a cinch and easy money, think again. I know someone who's in the business, my brother, and often the services and hours worth of work involved in a deal are astronomical. They earn every penny that make, believe me it's not that much at all. Sometimes less than $100.00, sometimes $500.00 but then on a $65000. item that's not a lot and sometimes is nothing if a customer uses their services and then don't buy.
You really think it's the same as going to the store to buy a jacket? Some out there like Peter obviously needs a reality check as I've encountered many uninformed people who think they'll save thousands without that greedy salesman.
I know I may get a reply about the rotten, uninterested salespeople they encoutered but remember you get great, mediocre and useless in every business from doctors, lawyers to salespeople in a department store. I know some I wouldn't go to, but I also know many who really know what they're doing and are there to make your buying experience a positive one. There's a lot involved in buying a car and the help of a reputable/knowledgeable salesperson is invaluable.
Posted by: philippe | Jul 13, 2021 10:21:46 AM
Lawyers and salespeople are bullshit. I heart they sell toyota at Costco in the States and I was thrilled. I think online sales is the way to go... corporations are acountable for their web site info so they will not lie there. I think they should put a lot of tutorials on the web from how to change your winter tires for your summer tires to opening up there diagnostic codes on the car's computer's can-bus... which would allow any garage to fix the cars. This way, when you have your car repaired, you would understand better and not have the feeling of being abused.
This quality after sales service would be a good marketing incentive to buy into.
BTW, when you change your winter tires for your summer tires... put a litlle copper dielectric grease so that the rim helps dissipate the heat of the brake...
Posted by: Minivan Maker | Jul 13, 2021 10:30:22 AM
The internet is a good way for research, even narrowing down which vehicle you are looking at buying. As far as how the car preformed only involving 20 percent? I think that is about 70 percent too low I have loked the look of many vehicles, but when I acutlally got in one and drove it my there was no way I would have ever bought it. Some handled or rode terrible, or didn't feel good with my driving style. To me the looks are the only thing that boast 20 percent of the decisoin, not the preformance when driven. I wonder what will happen when someone buys a car, drives it 10 km and decides that they don't like it. The best answer would be keep it.. if you are stupid enough to buy something you haven't tried out you deserve what you get. Anyone try on clothes that looked great, but no matter what size you tried you didn't like the way they fit? Now pay $20,000 for them..
Posted by: Gordy | Jul 13, 2021 11:12:33 AM
Buy a GM? Are you kidding? They are the poorest made cars on the planet. General Motors has been slapping people in the face for years, and now it's our turn. Their services are twice the cost of any other dealerships and the quality of their vehicles has been sub par for many years. Don't let J.D. Power awards for intial quality fool you... it means just that - when the car runs off the line it looks great, then it falls to pieces. I encourage everyone to NOT BUY GM!!! Buy Ford, buy Chrysler, but DO NOT BUY GM!!! There is no value in GM anymore, and no confidence! Research the other manufactures first! Keep the money in Canada!!! But don't give it to GM!
Posted by: Roger | Jul 13, 2021 11:18:28 AM
Not a chance
Posted by: John Willatt | Jul 13, 2021 11:19:46 AM
If you feel you needed a test drive and didn't know anyone who owned the same vehicle you could always find a rental company who had that make & model and try it for a day - far better than just driving a few blocks, often with the saleperson in the passenger seat.
Frankly I worry more about test driving a used car than a new one.
Posted by: axiom | Jul 13, 2021 11:43:17 AM
Does this make any business sense? Maybe in the short term, like GM just made a sale. Ok, seeya later, next customer...
So who is going to service my new vehicle I just bought from eBay? Crappy Tire?
Unless the new leaner, greener GM is planning on converting it's closed dealerships into maintenance shops, then maybe it'll work, even in the long term.
The New GM is still not thinking clearly. They keep advertising the new buzz words of new forward thinking, and change. They're cutting jobs, closing plants and dealerships to payback the US Government loan. And this is their first new action? Selling cars on eBay???
Does this seem like a smart business move to anyone?
Posted by: Jerry Roads | Jul 13, 2021 12:10:13 PM
You are a jerk,try backing up some of the crap you are spreading with real data not just you opinion.I will take JD POWER over you any day!
RE:Buy a GM? Are you kidding? They are the poorest made cars on the planet. General Motors has been slapping people in the face for years, and now it's our turn. Their services are twice the cost of any other dealerships and the quality of their vehicles has been sub par for many years. Don't let J.D. Power awards for intial quality fool you... it means just that - when the car runs off the line it looks great, then it falls to pieces. I encourage everyone to NOT BUY GM!!! Buy Ford, buy Chrysler, but DO NOT BUY GM!!! There is no value in GM anymore, and no confidence! Research the other manufactures first! Keep the money in Canada!!! But don't give it to GM!
Posted by: Jim | Jul 13, 2021 12:11:50 PM
Another dumb decision by a company bankrupt not only in money but also on ideas.
Having owned GM vehicles for 25 years I can attest to their poor customer service and low vehicle quality which they refuse to stand behind with their warranties.
For the first time in 25 years I am actually going to buy 2 new Dodge vehicles and I even considered Ford.
Posted by: chris corrigan | Jul 13, 2021 12:45:13 PM
I would not buy a GM car, period.Try getting service on your new truck when they come up with every reason why the problems are yours,not theirs and then when it does get fixed,your still stuck with a large repair bill.Should have bought used,and will never buy a newGM vehicle again.
Posted by: matt | Jul 13, 2021 1:02:15 PM
To the guy who says don't buy GM, I totally disagree, GM vehicles have been in our family for many many years and although we have had a few problems I think they are every bit as good or better then other makes. All brands break down or else they would not need service departments.
I think everyone should feel good about buying GM.
Posted by: ROD | Jul 13, 2021 1:18:41 PM
Buy New Cars on the Internet is not new its been going on in Europe for years.
OK so your dealer will be pissed off but if you save a couple of thousand dollars so what.
If the dealer finds waranty issues he claims it from GM any way.
Having bought two cars in Europe through the Internet there were two glitches.
Delivery time. and limited choice of spec. Best to buy the base model then take it to the Local Dealer for the add ons. That keeps the Dealer happy and you get what you want.
I was limited to the choice of base model or fully loaded with a lot of extras i didn't want. Some small dealers in UK would get the cars that way for you as they were limited by the main dealers as to the cars they could get. I got one "used" demo 120 km on the clock $5000 under brand new price.
It pays to shop around.
Posted by: John Steed | Jul 13, 2021 2:05:49 PM
Yes, when hell freezes over.
Posted by: nick | Jul 13, 2021 2:06:36 PM
I would buy online if the price was right. GM can always just send you to the nearest dealer or a dealer of your choice so that they get their cut. I get tired of trying to find a price and half the time knowing that for whatever reason someone else at the same dealership gets a better price,especially get tired of the dealers not admitting to extra rebates unless you know about them. Biggest problem might be trade-ins ?
Posted by: J Strathern | Jul 13, 2021 2:08:39 PM
I will never ever buy another piece pf GM scrap again.
Posted by: Ralph Rack | Jul 13, 2021 2:11:32 PM
Word of wisdom! Never buy auction merchandise even if new, unless it is at "5 - 10% OF wholesale" price. "I did not say 5 - 10% below wholsale."
SCREW THE CUSTOMER IS THE ULTIMATE AMERICAN SALES POLICY!!!
Posted by: Dave Rapcewicz | Jul 13, 2021 4:40:07 PM
I would never buy a GM,be it at a dealer,off E-Bay or at a used car lot.
But then since both the US and Cdn. Governements bailed them out, we the taxpayers, as owners of the new GM and Chrysler should get a vehicle at manufacturers cost
Posted by: mick | Jul 13, 2021 5:30:59 PM
I wouldnt buy a GM product period.