Amazon next year intends to offer auto dealers an opportunity to put their vehicles up for sale on its platform, initiating with Hyundai. As the firm has gained momentum in the car buying business by launching a digital platform allowing shoppers to gauge and evaluate the options available, people will be able to purchase cars through Amazon; though the seller will remain the dealership.—here's what to buy
Next year, Amazon is set to provide car dealers with the ability to sell vehicles on its platform, commencing with South Korean automaker Hyundai. Amazon has progressively progressed into the car-buying business over recent years, launching virtual showrooms on its site for customers to research and assess cars, but not to acquire them instantly through Amazon. Shoppers are also able to buy automotive items such as replacement components through Amazon.From 2024, Amazon will grant shoppers the option to buy a vehicle on the web and either collect it from the dealership or get it delivered. Consumers will be able to look for cars available in their region, pick one, and pay for it via Amazon using their favored payment and financing system. The firm stated the feature will "establish another way for dealers to promote their selection and give convenience to their customers."Amazon CEO Andy Jassy noted the partnership with Hyundai will revolutionize "the convenience with which customers can purchase vehicles online." As part of the agreement, Hyundai will incorporate Amazon's Alexa voice assistant in their cars from 2025.Shares of used car dealers such as Carmax and Carvana and the United States' biggest publicly-traded new car dealers Lithia Motors and AutoNation dropped upon announcement of the news. Shares of these companies were off between 7% and 10% during intraday trading on Thursday afternoon.Shoppers will now be able to obtain cars through Amazon, but the dealer is still the final seller. Major automakers such as Hyundai have complicated relationships with dealers that are endorsed, in several states, by laws that make it illegal or tricky to go around franchised dealers and offer new vehicles directly to customers.Tesla and other electric vehicle startups, such as Rivian, have designed ways to bypass the regulations in many states to sell vehicles directly online to shoppers. These involve beginning the purchase in states that don't prohibit the practice, or taking legal action to dispute such laws, as they have done in Michigan.The laws concerning used car sales are less stringent, making it possible for companies such as Carvana and others to directly offer preowned cars and trucks online to customers.
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