GM to sell cars via EBay starting Tuesday

General Motors Corp

Detroit-based General Motors Corp and online market place eBay Inc are believed to make an announcement on Monday, August 10, regarding a program in California, which will allow consumers to negotiate prices for new cars online.

The GM-eBay deal, in which 225 of California's 250 GM dealers are taking part, is a trial program at least until September 8. In case it works, it would be stretched to other parts of the nation.

GM dealers will sell Buick, GMC, Chevrolet and Pontiac vehicles on co-branded Web sites via eBay's online auto-marketplace. The online sale will start on Tuesday.

The new deal would let eBay users to visit Web pages like chevy. ebay. com and gm. ebay. com that provides customers with a chance to browse new 2008 plus 2009 motor vehicles.

Customers can also ask questions and work out financing.

Speaking on the deal, Inder Dosanjh, a California-based dealer, said, "I think they should have done this a long time ago."

Until now, only used cars were marketed online. Under the new deal, new cars will be marketed, including those eligible for Cash for Clunkers rebates.