Online Car Shopping

General Motors Corp. and Autobytel.com have joined in a 90-day test of what they believe is an improved system for shopping for cars and credit online. GM has asked its 7,800 dealers to participate in a $50 million joint venture beginning on May 1 that could lead to the establishment of a third-party web site such as Autobytel. GM is not buying an interest in Autobytel, but testing the viability of a third-party online finance facility jointly owned by GM and its dealers. The motive for the third-party approach stems from consumers' reactions to online shopping for credit at GM. Surveys revealed that consumers preferred by a margin of three to one to obtain their financing from a third party, rather than directly from GM. Consumers also preferred an online financing firm that would finance more than one brand of automobile. On March 19, Autobytel closed at $1.94, down from a 52-week high of $9.75.