A GM/EBay deal went live on August 11th
With over 225 California Chevrolet, Buick, Pontiac and GMC dealers scheduled to post over 20,000 new vehicles on Ebay, GM is hoping that Ebay's 12 million monthly visits will boost sales via its special GM-branded portal and help move remaining 2008 and 2009 model year vehicles from its inventory. With Ebay's "Buy it now and Best offer" sales formats, GM is making a measured bet on the new channel, and I'm sure other manufacturers will be watching closely for signs of success. This offer runs from August 11th thru September 8th. If you're in the market for a new car, it may be worth checking out.
Cash for Clunkers Rocking and Rolling
We've all heard more than we ever imagined we would about Cash for Clunkers. I did some math: there are now $3 Billion behind the program, with an average payout per car of $4,000. If every one of those 3 billion dollars is spent, that translates to 750,000 cars traded in (and thus a new car sold). This is already creating a lot of action on dealer lots and some movement in the used car markets, from what I've heard and read.
More immediately relevant to the people we talk to every day, the repair industry has been skeptical of the program because every clunker removed from the road is one less car that needs an aftermarket repair shop and one more car under manufacturer warranty. We have yet to hear a consistent story from garage owners and technicians about how business is--some shops are busy, some are really slow, and most seem to be up and down.
The effect of Cash for Clunkers will likely be felt relatively immediately, but it will probably be impossible for any one shop to pick out.