GM’s online used cars platform questioned by dealers image

General Motors new used car online service has been open for business, but the platform has not been quite welcomed by everyone, raising some questions among the US dealers.

The Detroit-based automaker said a month back it would launch a website on which those hunting for a used car would be able to buy some of the company’s low-mileage vehicles. General Motors recently announced that its service – called Factory Pre-Owned Collection – for online shoppers who are looking for a used Chevrolet, Buick, GMC or Cadillac vehicles, is live and ready for business, but the portal had a bumpy start. The company says more than 1,000 GM dealers from across the United States have already agreed to participate so far, however, this accounts only for a quarter of GM’s dealerships. Furthermore, California’s dealer association has challenged the site’s legality. In a recent complaint letter – obtained by Automotive News – addressed to GM North America President Alan Batey, the California New Car Dealers Association said it has concerns about whether the program breaks a number of state’s consumer protection laws and other legal requirements.

The questions raised are whether the website creates unfair competition between GM and its dealers for used-car sales, or if GM is engaged in auto brokering – for which it would need a California license. The letter also expresses concerns about the prices of the vehicles, claiming that they are “unrealistic” and “therefore misleading.” “There are a whole host of issues relative to the Pre-Owned Collection program, and it’s not clear to us, based on what we can surmise from the program itself, whether [GM has] thought about these issues,” Brian Maas, the association’s president, told Automotive News.

Via Automotive News