Amazon launched AmazonAutos on Monday to enter the online car sales field. It is an e-commerce business that allows customers to find, order and purchase new cars, pickup trucks and SUVs from dealers.
Amazon and Hyundai will launch this new business in 48 cities in the United States, including Atlanta, Boston, Chicago, Los Angeles and New York. It comes just over a year after the e-commerce giant announced plans to start selling cars on its website in the second half of 2024. Amazon says it will add more cities and more automakers in 2025.
AmazonAutos will operate like the rest of Amazon's e-commerce ecosystem in many ways. Shoppers will be able to search available vehicles from participating dealers by model, trim, color and features. Notably, customers can also obtain financing and electronically sign documents through the AmazonAutos website. Once payment is complete, the customer can schedule when to pick up the car from the dealership.
When a car is sold on Amazon, the local dealer (currently only Hyundai dealers) becomes the seller of record and can even handle trade-ins.
The online car sales market is highly competitive. However, most companies in the industry, including AutoTrader, Carvana, and Carmax, sell used cars. Customers browsing Amazon Auto can only purchase new models. The company said it plans to add leases and expand financing options next year.
Amazon's reach could appeal to automakers like Hyundai. Consumers may also be attracted by Amazon Auto's promise of transparent pricing from local dealers, eliminating the need for negotiation. In other words, there is no haggling. Amazon says the price customers see at checkout is the price they pay, including all taxes and fees.