SANTA MONICA, Calif. — Since the General Motors-eBay program launched, the number of site visitors conducting GM vehicle pricing research has jumped 10 percent higher in California than it has in the other 49 states, according to Edmunds.com. However, GM consideration growth is flat relative to other states in the same time period. This suggests that the program appeals to car shoppers who had existing interest in GM products, but it is not generating any new interest.
Edmunds.com’s analysts estimate that eBay “buy it now” prices are on average two percent higher than average market price. On a $25,000 vehicle, that equates to about $500.
“The World Wide Web is indeed a web, and marketers need to connect all touch points a consumer is likely to check,” commented Edmunds.com CEO Jeremy Anwyl. “In this particular case, GM offered a price that is above market price and that could create friction for those trying to close a sale.”
The below chart sets forth some specific examples of the difference in pricing:
“Generally, GM vehicles sell for less in California than they do in other states due to lower demand here where imports are so popular,” notes Edmunds.com senior analyst Jessica Caldwell. “This program is a great marketing opportunity for GM to showcase creative thinking and to raise awareness of its products, but at the end of the day, it is easy for most California car-shoppers to conduct Internet research before making a major purchase and the GM program will lose some luster when they do.”
“When a no-haggle price is offered, car shoppers should always do their homework to see if it really is a good deal,” reminds Edmunds.com senior consumer advice editor Philip Reed. “In this case, buyers will generally be better off using eBay’s ‘make an offer’ feature to negotiate a lower price rather than accepting the ‘buy it now’ price.”
Edmunds.com also analyzed which vehicles have gained the most interest among Web site visitors in California since the launch of GM’s eBay program. The following five GM vehicles experienced the most dramatic growth in purchase intent among Californians since the program launched:
