FOR IMMEDIATE RELEASE
Edmunds.com Evaluates GM EBay Promotion; GM Purchase Intent Climbed 10 Percent, but High Prices Limit Sales
SANTA MONICA, Calif. — August 20, 2009 — Edmunds.com, the premier online resource for automotive information, today released some initial analysis about the eBay/General Motors program's results to date.
Since the program launched, Edmunds.com has observed that the number of site visitors conducting GM vehicle pricing research has jumped ten percent higher in California than it has in the other 49 states. 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:
|YEAR/ MAKE/MODEL||EDMUNDS.COM TRUE MARKET VALUE®||EBAY "BUY IT NOW" PRICE||DIFFERENCE|
|2009 Buick Enclave||$46,028||$47,056||$ (1,028)|
|2009 Chevrolet Equinox||$23,757||$23,905||$ (148)|
|2009 Chevrolet Impala||$24,244||$24,812||$ (568)|
|2009 GMC Acadia||$35,339||$36,050||$ (711)|
|2009 Pontiac G6||$19,397||$21,105||$ (1,708)|
"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:
About Edmunds Inc. (http://www.edmunds.com/about/)
Edmunds Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.