Just as dealerships accross America adjust to government assistance in defibulating the volume in a showroom near you, not really knowing the receivables nightmare that may follow due to lack of knowledge and ability to properly audit individual qualifying transactions, enters E-Bay Motors.  Yes, the auction giant will begin assisting General Motors on the west coast in moving new vehicle inventory through the power of an online auction for consumers. 

Will this formula sacrafice gross for volume?  The answer is in the piloting of the dealerships that have been selected and how far the auto consumer will drive to save $100.  If history tells us anything, consumers will drive to save money as with the pre-owned internet market that has enabled many dealerships to reach into markets far away from their PMA and enhance their presence.  Gross profit is traded for volume within the pre-owned market and with margins ever so little on new vehicles we could see a trend that impacts the net profit of dealerships nationwide.  E-Bay Motors will get fees that could exceed the profit of a franchised dealer in some of these transactions, which should concern all dealers that have invested millions in operations that are seeing the profit margin shrink and expenses rise.  Stay tuned for this latest move by the auto experts in Washington that seem to be blind to the reality of gross profit.