Amazon this week went public with its car sales program, letting consumers buy new Hyundais online from dealers in 48 U.S. cities.
The launch expands a program launched in November 2023 with 18 Hyundai-branded dealerships and available to a limited group of car shoppers: Amazon’s own employees.
The public launch expands the program’s reach to the general public in markets including New York City, Los Angeles, Miami, Chicago, Washington, D.C. and San Francisco, Amazon announced. And with a reported 83% of U.S. consumers having shopped on Amazon during the 12-month period ended June 30, 2024 (per CSA), it will reach an enormous customer base in just those markets.
From: AboutAmazon.com
The program, which dealerships at first greeted with a mix of enthusiasm and worry, has evolved in at least one respect by offering a trade-in option that was missing when launched as a pilot.
Amazon says the current iteration lets shoppers:
- Shop for cars by make, model and trim
- Get an instant valuation on a trade-in and see how it would apply to the purchase price of the new car (the offer’s not negotiable online; customers seeking a better price must take it up with the dealer at pick up)
- See transparent, upfront pricing
- Secure financing or pay cash
- Add other upsells such as warrantee extension and insurance
- Complete the checkout process through e-signing
- Schedule a pick-up time at the dealership
Interestingly, Amazon’s announcement made no mention of home delivery, which was mooted as an option during the pilot phase.
And it appears, at this stage at least, that Amazon has not built any of its own showing rooms or amassed any owned inventory. Customers need to pick up their purchases at the dealerships. Assuming there’s one participating dealership for each of the 48 markets, that would be about 6% of the the 820 Hyundai franchises in the country.
Amazon said the program will expand in 2025.
“We continue to add more Hyundai dealerships, and next year, we will roll out additional manufacturers, brands, cities, and new functionality.”
Global head of Amazon Autos Fan Jin wrote in the announcement: “We’re partnering with dealers and brands to redesign car shopping—making it more transparent, convenient, and customer-friendly. With Amazon Autos, we’re bringing the simplicity and ease customers expect from Amazon to car shopping, one of their largest purchases, while offering dealers a new channel to connect with a broad audience.”
Dealer surveys in June revealed skepticism about the program due to its limited functionality. Finance and insurance options were limited, leasing wasn’t available at all (just over 21% of new cars were leased in Q3 2023, according to Statista) and a trade-in process was missing.
Although the last bit has been added, it remains to be seen how the evolving program appeals to average dealers.
