Amazon made a significant move into the automotive market on Tuesday with the introduction of Amazon Autos, an e-commerce platform designed for customers to discover, order, and purchase new cars, trucks, and SUVs directly from dealerships.
The initial launch of Amazon Autos involves a partnership with Hyundai and is available in 48 U.S. cities, including major metropolitan areas like Atlanta, Boston, Chicago, Los Angeles, and New York. This launch follows the announcement made last year regarding Amazon’s plans to start selling vehicles online in the latter half of 2024. Amazon has indicated its intention to expand the program to more cities and include additional auto manufacturers in 2025.
Functioning similarly to the larger Amazon e-commerce system, Amazon Autos provides shoppers with the ability to search for vehicles from participating dealers based on parameters such as model, trim, color, and features. Customers can also arrange financing and digitally sign the necessary paperwork directly through the Amazon Autos platform. Upon completing the purchase, customers can schedule a time to pick up their new vehicle from the designated dealership. During this initial phase, when customers purchase vehicles through Amazon Autos, the local dealership, currently limited to Hyundai dealers, serves as the official seller. The platform even supports trade-ins.
The online car sales sector is already competitive. However, notable players such as AutoTrader, Carvana, and Carmax primarily focus on used vehicles. In contrast, customers using Amazon Autos currently have the option to purchase only new cars. The company also plans to introduce both leasing options and expanded financing choices in the coming year.
Amazon’s extensive reach offers significant appeal to automakers such as Hyundai. Furthermore, Amazon Autos aims to attract consumers by promising transparent pricing from local dealerships, eliminating the need for negotiations.
“The price customers see at check-out is the price they pay, inclusive of all taxes and fees,” Amazon stated, emphasizing the platform’s transparent pricing model.
