GM & eBay: Is car buying online a good deal?

General Motors is looking to the Web to broaden the car-buying audience through a partnership with eBay and participating California Buick, Chevrolet, GMC, and Pontiac dealers. Through this pilot program that runs through September 8th, West Coast car buyers have access to the virtual new car showroom. Shoppers can browse models on gm.ebay.com and find all the vehicle details and features. On some models there will be a “Buy It Now” price or an option to negotiate with the dealership to give your best offer.

Consumer Reports looked at the offers in this new channel to see which is better--shopping online through this program or going into the dealership? We looked at the deals and compared them to our Bottom Line Price, which factors in any dealer sales incentives, holdbacks, and rebates from the dealer-invoice price.

The results: The eBay program can save you money on certain models.

We surveyed a variety of models, and focused our detailed comparisons on three recommended vehicles: the 2009 Chevrolet Malibu, 2009 Pontiac Vibe, and 2009 Chevrolet Avalanche.

On the Malibu, we found the “Buy It Now” price to be over $2,300 less than the MSRP and almost $400 below our Bottom Line Price.

For the Vibe we found a savings of over $1,600 below our Bottom Line Price and over $3,000 less than MSRP. Both the Malibu and Vibe had factory cash back, as well.

However, not all deals were good ones. The Chevrolet Avalanche eBay price was $3,000 more than our Bottom Line Price and only $950 below the MSRP.

You can find good deals though the GM/eBay program. However, it’s important when shopping in this arena to do your research and read all the details. Since eBay is an auction site, you can have competition for the model. With the auction’s clock ticking down, you have limited time to make a decision. You also need to be prepared to purchase the vehicle and quickly arrange pickup and shipping. Also note that prices aren’t set in stone until there is a final agreement between the buyer and selling dealer.

Buyers should be wary of unexpected add-ons or markup-driven enticements (e.g., VIN etching, stain protection, extended warranties), just as they would with a traditional purchase. And as always, the buyer may need financing. Best to know the fair rates and secure a loan quote before accepting dealer financing. If the dealer can’t meet or beat your best rate, you’ll have an alternative plan.

Car shoppers nationwide can use the power of the Internet to check local inventory and solicit offers from nearby dealers by using the automaker’s Web site. What makes the eBay program unique is the ability to bid on a product and watch market forces in action, or conveniently choose to “Buy it now.”

When buying any new car, whether at the dealership or online, through eBay or from a neighbor, focus on choosing the best car for your needs and budget. ConsumerReports.org has a variety of tools to help you make an informed choice, then empower you with the Consumer Reports Bottom Line Price from the New Car Price Report. 

—Liza Barth 

Comments

[mikedudical]

Bidding for cars in nothing new. The idea of bidding on a new car might be a wakeup call to GM. Retail prices are way to high. Why do you think the Feds need to pay people $4500 to subsidize retail? If you're smart you'll buy a used car from either ebay.com or repofinder.com. Buying new is a waste right now.

[cars ireland]

Buying online is a great way to purchase a car, you can find great deals. However the buyer most be aware of potentail internet scams.

[CyCarConsulting]

When this information first circulated about ebay and GM, I took my own small poll to get feedback on this new marketing plan for GM. I found most people not interested in using this format, and in their reasons why ,realized they had more fear of the unknown rather than an actual apprehension about online buying through ebay. GM may have a struggle at first, until more and more people talk to friends that have successfully navigated through this maze, and can ease some of the tension.

[Tech Nerd]

Fuel Efficient Hybrid Cars (Dual Energy) already knocked the doors in North America.

Folks just forget eBay or PayPal or what so ever for a while, their role to boost GM's car sale is really not bad at all.

But the major technology issue with GM's cars is they all are almost out-dated. GM had more than three decades to respond to higher gas prices with fuel-efficient cars, and to meet the Japanese challenge with better products. While Ford has responded the challenge with successful Ford Escape running down the roads. By 2010 you will also find a new player Suzuki in North America.

In terms of technology, its very... very long run for GM like Marathon with other cutting edge competitiors.
Somewhere in last May'2009, GM was about to recall 1.5 million cars made between 1997 and 2003 for possible engine fires. And here is a true story

David A. Vogt wrote:
On or about November 11, 2004 my 1997 Pontiac Grand Prix caught fire when we stopped at a rest stop about 50 miles from Chattanooga, TN on our way to a wedding in Atlanta. Since we are from Illinois, I was forced to buy a new car in Chattanooga in order for us to have a way home. Thankfully, we had others traveling to the wedding who we were able to contact by cell phone. They picked us up at the rest stop, took us to Long of Chattanooga, a Pontiac dealer, and then on to Atlanta to the wedding. My car was in perfect condition and we had no intention of buying a new car.

A hybrid electric vehicle (HEV) is a hybrid vehicle that combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve better fuel economy than a conventional vehicle. A hybrid electric vehicle is also a form of electric vehicle; a variety of types of HEV exist, and the degree to which they function as EVs varies as well. The most common form of HEV is the hybrid electric car, an automobile driven by a gasoline internal combustion engine (ICE) and electric motors powered by batteries.

Fuel cell, electric hybrid
The fuel cell hybrid is generally an electric vehicle equipped with a fuel cell. The fuell cell as well as the electric battery are both power sources, making the vehicle a hybrid. Fuel cells use hydrogen as a fuel and power the electric battery when it is depleted. The Ford Edge Hyseries Drive and Honda FCX are examples of a fuel cell/electric hybrid.

Followings are most successful hybrid vehicles running down the roads in North America
Toyota Prius, Toyota Camry Hybrid, Toyota Lexux Hybrid, Ford Escape Hybrid, Toyota Highlander Hybrid, Honda Insight, Honda Civic Hybrid. Among all of them Toyota Prius, Honda Civic, Ford Escape and Honda Insight are doing the best according to the consumer statistics.

Hybrid Vehicles are the cars of the future. Over time, hybrids will trend to green environment technologies such as ethanol, biodiesels, hydrogen and new lithium battery technologies with their high energy, low weight and long life capabilities. Hybrid Vehicles are more fuel efficient.

Smart Buyer always invests in a cutting edge technology which in return repays every single buck invested.

[Moses of Columbus]

Be wary of all good deals right now. The $4500. "Cash for Clunker" is no deal at all. I bought a new Honda Odyssey Jan 1, 2005 for $500. under dealer cost which was a discount of about $4000. Now if you take what
I negotiated plus the $4500. Gov. spin down... now that would be a "Real Deal" IMHO