Amazon Introduces Car-Buying Platform Amazon Autos, Starting With Hyundai

Amazon, the world’s largest online retailer, is getting into the new car business. As of now, customers in 48 U.S. cities can purchase a new Hyundai through Amazon Autos.

Through Amazon’s portal, a shopper can look at various Hyundai models available at a local dealership. Potential buyers can sort options by color, trim, features, and various other filters. Financing a new vehicle purchase is also possible, and currently owned vehicle trade-in values can also be estimated through the site. Once purchased, the new car can be scheduled for pick-up from the dealer.

Amazon notes there is no need to negotiate prices or deal with salespeople. The purchase price of a vehicle, including taxes and fees, is fully disclosed to the buyer.

“We’re partnering with dealers and brands to redesign car shopping — making it more transparent, convenient, and customer-friendly,” said Fan Jin, global head of Amazon Autos, in the announcement on the company’s site.

Car sellers are likely to embrace the idea. With the power and reach of Amazon, dealerships will get access to millions of potential customers. With a car purchase already made, the dealers can build trust and loyalty without needing to win the customer over in order to make the initial sale.

Amazon Autos Likely To Ramp Up Car Buying

While only Hyundai vehicles are available now, Amazon plans to expand the program next year. The retailer will introduce more automotive brands, dealerships, and cities. Financing options will also be added to include leasing.

“We’re excited to have Hyundai as our exclusive launch partner and look forward to welcoming more brands and expanding our selection to customers as the program grows,” said Jin.

Car buying has changed significantly in recent years, with companies like Carvana pioneering the online sale and car direct delivery concept. Actually stepping into an auto dealership, negotiating with a salesperson, and physically signing all the final paperwork is mostly a thing of the past.

According to Consumer Affairs, online car buying will continue to grow, with an expected 17.5% increase compounded annually over the next 10 years. In 2020, the global online car-buying market was worth $237.9 billion, and it is currently estimated to reach around $722.8 billion by 2030.

With such strong numbers, it could make sense for Amazon to invest in an online car-buying portal and establish partners to grow it. Countless shoppers already like and trust Amazon, so buying a car via the retailer may not be such a far-fetched idea.