DETROIT -- General Motors plans to launch an online service to sell low-mileage used cars to consumers nationwide, a bid to capture the growing number of car shoppers who prefer to browse digitally.
The site will offer an online inventory of GM vehicles returned off lease, from daily-rental operators and from GM’s company car program. The vehicles will have a maximum of 37,000 miles and include an extended bumper-to-bumper warranty, GM said today.
The portal is expected to host an inventory of about 30,000 vehicles, GM said.
Called the Factory Pre-Owned Collection, the system will include cars from Chevrolet, Buick, GMC and Cadillac. The brands’ Web sites and the sites of participating dealers will link to a new Web portal where shoppers can browse thousands of used cars.
Once a vehicle is selected, the user will pick a dealership and complete the purchase through GM’s existing online-shopping tool, Shop-Click-Drive, which resides on dealerships’ individual websites. Buyers will take delivery at the store.
The vehicles will get an extended factory bumper-to-bumper warranty, 12 months or 12,000 miles for Buick, GMC and Chevy vehicles and two years, 20,000 miles for Cadillacs.
GM President Dan Ammann said the system is a first for the industry and represents a “subtle but pretty significant change” in the way used vehicles are sold.
“Essentially what we’re doing is we’re opening up our remarketing channel to the consumer in partnerships with our dealers,” Ammann said during a briefing with reporters today.
“As an organization with a lot of [used-car] volume going in there, we see an opportunity to disrupt that area and create opportunity for ourselves,” Ammann said, “while offering a better selection to used-car customers, and in partnership with our dealers to drive incremental volume and business for them.”
GM has partnered with Kelley Blue Book to offer the consumer site’s online Fair Market Range tool, which uses prices that buyers have paid in that area for similar vehicles. Users also will get a vehicle history report from Carfax.
The program also offers a three-day, 150-mile exchange program, a three-month trial of OnStar and Sirius/XM Radio. Owners get roadside assistance and courtesy transportation service during the warranty period.
The Factory Pre-Owned Collection site goes live next month.
“The Factory Pre-Owned Collection creates a simpler, easier experience for our customers and offers them more choices, less hassle and greater peace of mind,” GM North America President Alan Batey said in a statement. “It’s also great for our dealers and GM because it introduces new buyers to our brands and increases residual values. Everybody wins.”
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