GM launches test program in California selling cars on eBay

General Motors and eBay are partnering for a four-week selling spree in California.

Chevrolet, Buick, GMC and Pontiac dealers in the Sunshine State will sell up to 20,000 cars on gm.ebay.com from Aug. 11 to Sept. 8. More than 225 dealers will participate.

Shoppers can click through 2008, 2009 and some 2010 models and ask questions, negotiate prices and arrange financing and payment. The cars will be on sale with two eBay Motors formats: “Buy it now,” whereby shoppers agree to pay the advertised price, and “Best offer,” via which buyers set the price and negotiate online with dealers.

In addition, shoppers can compare prices, get tips, determine the value of their trade-ins and see whether they may qualify for the federal cash-for-clunkers program.

The move is part of GM's plan to dramatically remake itself with better products and customer relations after emerging from bankruptcy.

Unlike other eBay auctions, the highest bidder will not win the car. Instead, the car is listed at a “buy it now” price that is equal to GM's supplier price. In addition, shoppers can submit a lower price to negotiate with dealers.

The then-revolutionary eBayMotors.com began 10 years ago, and in 2007, it added a local-market program for dealers. The subscription service allows dealers to upload and showcase their inventory.

By Angie Favot