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Amazon Launches Online Car Sales with Hyundai Partnership

Amazon Launches Online Car Sales with Hyundai Partnership

Amazon has officially entered the auto retail market with "Amazon Autos," a new platform allowing customers in 48 U.S. cities to purchase new Hyundai vehicles directly through its website and app.

Source:

TechCrunch

Amazon Enters Auto Retail Market

Amazon has launched Amazon Autos, a new platform that allows customers to purchase new vehicles directly from its website and app, marking a significant entry into the automotive retail sector. The service debuts with an exclusive partnership with Hyundai.

Starting today, shoppers in 48 U.S. cities, including major markets like Los Angeles, Chicago, and New York, can browse, finance, and order new Hyundai vehicles for pickup at local dealerships. According to GeekWire, this move leverages Amazon's vast e-commerce infrastructure to streamline a traditionally complex purchasing process.

Initial Rollout and Partnership

The collaboration with Hyundai makes it the first automotive brand available on the platform. This follows Hyundai’s earlier decision to use Amazon Web Services (AWS) as its cloud provider. Hyundai’s CEO described the initiative as “the future of automotive retail,” reports Automotive Dive.

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Source:

Automotive News

A New Way to Buy a Car

Amazon Autos aims to replicate the company's familiar e-commerce experience for car buying, focusing on transparency and convenience.

The Buying Process

The platform enables customers to handle nearly the entire transaction online:

  • Search and Select: Buyers can browse local dealership inventory by model, trim, color, and other features.

  • Transparent Pricing: All vehicle prices are set by the dealerships and are presented upfront, eliminating the need for haggling.

  • Trade-Ins and Financing: The system offers instant trade-in valuations and allows users to secure financing directly on the site.

  • Digital Checkout: All paperwork is handled electronically, and customers can complete the payment online.

The final step is scheduling a pickup time at the designated dealership. As noted by Retail TouchPoints, this model ensures compliance with state franchise laws, which often restrict direct-to-consumer auto sales.

Source:

Electrify News

Industry Disruption and Future Plans

Amazon’s entry is poised to accelerate the digital transformation of the auto sales industry, a space that has been slow to move fully online.

Navigating Legal Hurdles

By routing all final sales through licensed dealerships, Amazon bypasses the legal challenges faced by companies like Tesla, which cannot sell directly to consumers in some states. This structure benefits participating dealers by providing access to Amazon's massive customer base, potentially increasing sales and leads.

Expansion on the Horizon

This launch is just the beginning. According to Digital Commerce 360, Amazon plans to expand the program in 2025 by:

  • Adding more automotive brands to the platform.

  • Rolling out the service to more cities across the U.S.

  • Introducing new features, such as leasing options.

While some dealers welcome the new digital channel, others express concern about the potential for Amazon to commoditize the car-buying experience and diminish the dealership's role.

Industry Disruption and Future Plans

Amazon’s entry is poised to accelerate the digital transformation of the auto sales industry, a space that has been slow to move fully online.

Navigating Legal Hurdles

By routing all final sales through licensed dealerships, Amazon bypasses the legal challenges faced by companies like Tesla, which cannot sell directly to consumers in some states. This structure benefits participating dealers by providing access to Amazon's massive customer base, potentially increasing sales and leads.

Expansion on the Horizon

This launch is just the beginning. According to Digital Commerce 360, Amazon plans to expand the program in 2025 by:

  • Adding more automotive brands to the platform.

  • Rolling out the service to more cities across the U.S.

  • Introducing new features, such as leasing options.

While some dealers welcome the new digital channel, others express concern about the potential for Amazon to commoditize the car-buying experience and diminish the dealership's role.

How does Amazon Autos compare to traditional car-buying experiences?

Amazon Autos digitizes the car-buying process by offering transparent, no-haggle pricing, online financing, and digital paperwork. This contrasts with traditional dealership visits that often involve lengthy negotiations. The only in-person step is the final vehicle pickup at the dealership.

How does Amazon Autos compare to traditional car-buying experiences?

Amazon Autos digitizes the car-buying process by offering transparent, no-haggle pricing, online financing, and digital paperwork. This contrasts with traditional dealership visits that often involve lengthy negotiations. The only in-person step is the final vehicle pickup at the dealership.

How does Amazon Autos compare to traditional car-buying experiences?

Amazon Autos digitizes the car-buying process by offering transparent, no-haggle pricing, online financing, and digital paperwork. This contrasts with traditional dealership visits that often involve lengthy negotiations. The only in-person step is the final vehicle pickup at the dealership.

What are the benefits of using Amazon Autos for car buyers?

What are the benefits of using Amazon Autos for car buyers?

What are the benefits of using Amazon Autos for car buyers?

How does the trade-in valuation process work on Amazon Autos?

How does the trade-in valuation process work on Amazon Autos?

How does the trade-in valuation process work on Amazon Autos?

What financing options are available through Amazon Autos?

What financing options are available through Amazon Autos?

What financing options are available through Amazon Autos?

How does Amazon ensure transparent pricing on its Autos platform?

How does Amazon ensure transparent pricing on its Autos platform?

How does Amazon ensure transparent pricing on its Autos platform?