Online Auto Sales: GM Launches Factory Pre-Owned Collection

January 15, 2016 0 Comments

General Motors has introduced a new program to sell used vehicles to consumers online. While this means consumers will pick up the vehicle at a dealership, some worry this move by GM is just the automaker taking more control of its used car market.

General Motors is launching a factory online used auto store. According to GM, the inventory will include former lease, daily rental and company-owned vehicles never before available to the public. These are vehicles, which are typically part of GM-dealer-only auctions, but General Motors is keeping them as inventory for their new initiative, called Factory Pre-Owned Collection.

In a press release CEO Mary Barra explained this new venture is aimed at grabbing online car shoppers. In a statement Barra said, “We know that many of our customers who are shopping for a used car want to complete more of the process online, and that number is growing. GM is already a leader in online new car shopping with our Shop-Click-Drive service, and we are expanding it with the Factory Pre-Owned Collection, making GM the first automaker to offer this choice to consumers.”

The factory pre-owned store from is set to have over 30,000 vehicles with fewer than 37,000 miles. Consumers who purchase one of these used vehicles from GM also get a bumper-to-bumper warranty.

General Motors indicated in their release the three steps to buying a vehicle on their Factory Pre-Owned Collection:

  1. Browse the inventory to find the vehicle of their choice.
  2. Choose a participating GM dealer and reserve their vehicle using the Shop-Click-Drive experience.
  3. Finalize their purchase and take delivery of their vehicle from their selected dealer.

In their press release about the new venture, GM encourages consumers to consult Kelly Blue Book to make sure they are getting a good deal on the vehicle.

Alan Batey, president, GM North America spoke about the initiative in a statement saying, “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. It’s also great for our dealers and GM because it introduces new buyers to our brands and increases residual values. Everybody wins.”

Do you think other automakers will follow GM’s lead in setting up a factory-direct used vehicle sales platform? How do you interpret this move by GM, is it an attempt to compete with the used online platforms like Carvana, or is it something else?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.