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GM to Launch Online Shopping Portal for Low-Mileage Used Cars

January 14, 2016

DETROIT — A surplus of low-mileage used vehicle will soon be hitting the market, and they’re going to be coming from General Motors. Set to launch in February, GM’s new Factory Pre-Owned Collection website will offer consumers more than 30,000 used cars with less than 37,000 miles on the odometer.

The automaker’s decision to open up its remarketing channel to consumers through an online portal that will take advantage of its Shop-Click-Drive car-buying service may give dealers pause, but GM spokesperson Ryndee Carney said the move is designed to help GM dealers compete with third-party sites that are disrupting the used-car market.

“The benefit for dealers is that it will help them achieve incremental used-car sales by having access to ‘virtual’ inventory they do not have to floorplan nor advertise/market, as well as allow them to engage with customers whom they would not normally see in their showrooms ...,” Carney said in a statement emailed to F&I and Showroom. She added that participating dealers will also have the opportunity to sell F&I products on vehicles sold through the portal, as well as benefit from warranty and customer-paid repairs performed by their service departments.

According to GM, customers will be able to purchase a vehicle in three steps: They first select a vehicle, then choose a dealer from which to take delivery of the vehicle, and then reserve the vehicle through Shop-Click-Drive. The purchase, however, won’t be completed until the customer visits their selected dealership to complete the paperwork and take delivery.

“Technology and consumer demands are disrupting the used-car marketplace, and GM is leading the way in transforming the way used cars are sold,” said Alan Batey, president of GM North America, in a company press release.

The website’s inventory will consist of GM company-owned, off-rental and off-lease vehicles. Consumers will be able to compare the suggested prices with what others in the area have paid through the Kelley Blue Book Fair Market Range. They will also have access to Carfax Vehicle History Reports.

This service comes at a time when new-vehicle sales numbers are at an all-time high, peaking last year after several years of progressive growth at a record-breaking 17.5 million units. The move also comes at a time when a tidal wave of off-lease vehicles are expected to hit the market — another reason for GM’s decision, Carney said..

“The Factory Pre-Owned Collection is another way that we can help manage residual values of our vehicles, including an anticipated increase in vehicles coming off-lease in the next few years,” Carney said.


  1. 1. Usedcarsrule [ January 16, 2016 @ 08:16AM ]

    Why not let dealers just sell these cars?

  2. 2. Glenn Clark [ January 20, 2016 @ 01:08PM ]

    allow us to engage with customers whom they would not normally see in their showrooms?? My BS barometer just pegged out!

  3. 3. Sheldon Wolff [ January 23, 2016 @ 09:10AM ]

    GM is getting more and more into the retail market, they're reading the writing on the wall like tesler selling directly to consumers. They just announced they're getting into the share a ride market fueling the destruction of the hackney industry. They are pushing and crossing the lines of their distribution with respect of their very expensive and exclusive loyal dealer network. They're selling their customers and their customers customers... Eventually they will just squeeze out their dealer network.

  4. 4. Dan Luneau [ January 23, 2016 @ 12:54PM ]

    This will not come out well.

  5. 5. TheFacts [ January 25, 2016 @ 08:39AM ]

    "The purchase, however, won’t be completed until the customer visits their selected dealership to complete the paperwork and take delivery."
    Sounds like a service that is assisting to dealerships.

  6. 6. Steven Jennings [ January 28, 2016 @ 04:44PM ]

    Seems to me that this is the same as someone who buys the car or truck after the lease is done. The advantage to the dealer is the opportunity to sell their Ancillary products and capture the financing. I wish I was working for a GM dealer, I would take all of these deals as possible. I really do not see this as GM trying to get in the retail side of this business. Oh and by the way not to mention the servicing of these cars and trucks.

  7. 7. Alan Davis [ February 10, 2016 @ 02:03PM ]

    I don't see the difference between the consumer choosing the vehicle online and having it delivered to the dealership and a Dealership buying the vehicles at a GM auction and marketing the vehicles themselves....except for auction fees, floorplan expense, reconditioning expense, transportation expense, and disposing of the program vehicles that didn't sell 90 days out at a loss... not to mention the time a Manager spends on this each day. The off-lease and off-rental cars have been around a long time and I welcome a new method of marketing these vehicles.

  8. 8. Mark Danowitz [ April 28, 2016 @ 01:20PM ]

    The difference is that the dealer pays retail for the vehicle with very little profit potential. If the customer does not take the vehicle he then owns it for thousands over wholesale. Any dealer that commits to a retail price for a car that isn't attached to a bullet proof deal is headed for financial disaster.


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