Earlier this week, GM announced that 225 of its dealers in California will participate in a trial of a new program that allows consumers to buy new cars on the online auction site eBay.

If all goes well, the program could incorporate more dealers as early as September.

The move is seen as part of the company’s revamping efforts after it filed for bankruptcy earlier this year.

Buying a Car Online: How it Works

So how will getting a new Chevrolet, Buick, Pontiac or GMC be different from buying, say, an antique lamp?

Here’s how the GM’s eBay-specific purchasing site, gm.ebay.com, will work:

• Browse the goods: Rather than exploring a car dealership in person, those who visit the eBay site will have the option of viewing various models online. Currently, shoppers can peruse 2008, 2009 and 2010 models.
• Ask questions: Shoppers will have a chance to submit queries about various automobiles to guide their purchasing process. The site will also include features that help customers calculate the trade-in value of their current vehicle and whether it meets criteria for Cash for Clunkers.
• “Buy it now” button: By simply clicking this icon, online shoppers will be able to buy a car at the established supplier price, according to sources. But consumers will also have the option of submitting a lower price, which individual dealers can either accept or reject.
• Arrange financing and payment: In order to make sure your purchase is affordable, you’ll be able to work out payment plans on the site.

Web Car Buying = Less Pressure for Shy Folks

Mark LaNeve, GM’s vice president for U.S. sales, has been quoted for pointing out the benefits online shopping may have for people who are intimidated by the car dealership atmosphere: by submitting price offers and other difficult questions over the Web, timid consumers may have a better chance of getting a “deal” on a car.

12 Million Monthly Shoppers Already Browsing eBay for Cars

Although General Motors may be the first to specifically market new cars on eBay, the market itself isn’t new: sources indicate that as many as 12 million people visit eBay Motors each month, usually to purchase used cars.

The GM-eBay program is set to run from August 11 – September 8

After that time, the companies will evaluate the program’s success and could extend it.

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