Amazon expanded into online car sales Monday with the launch of Amazon Autos, an e-commerce business that lets customers find, order and buy new cars, trucks and SUVs from dealerships.
Amazon is launching a new effort with Hyundai Motor Company in 48 U.S. cities, including Atlanta, Boston, Chicago, Los Angeles, and New York. The launch comes more than a year after Amazon announced plans to begin selling vehicles on its website in the second half of 2024. Amazon said it will add more cities and automakers in 2025.
Amazon Autos, like the rest of the broader Amazon e-commerce ecosystem, works in many ways. Buyers can search available vehicles by model, trim, color and features from participating dealers. Specifically, customers can also secure financing and electronically sign documents through the Amazon Autos site. Once payment is complete, customers can schedule a time to pick up the vehicle from the dealership.
Once the vehicle goes on sale on Amazon, local dealers (currently only Hyundai dealers) will become record sellers. Amazon Autos also handles trade-in sales.
The online car sales market is crowded. However, most companies in this business, including AutoTrader, Carvana, and Carmax, sell used vehicles. Customers searching Amazon Autos can only purchase new car models. The company said it plans to expand its leasing and financing options next year.
Amazon has the clout that automakers like Hyundai will find attractive. Consumers may be attracted to Amazon Autos’ promise to eliminate the need for negotiation and provide transparent pricing from local dealers. That means no haggling. Amazon said all taxes and fees are included in the price customers pay at checkout.
