Amazon is stepping into the car sales market with its new feature, Amazon Autos, partnering with Hyundai to offer customers the convenience of purchasing new cars online without ever needing to visit a dealership or take a test drive. Initially available in 48 major U.S. cities, including Los Angeles, Miami, New York, and Portland, this service aims to expand to additional manufacturers and more cities next year.
A significant advantage of Amazon Autos is the emphasis on transparency in pricing. Amazon provides a detailed price breakdown for each vehicle, from specific features like carpeted floor mats costing $210 to how dealer prices compare with the Manufacturer’s Suggested Retail Price (MSRP). This transparency also covers important details like warranty terms and vehicle condition, ensuring a straightforward buying process. Additionally, buyers can estimate their monthly payments based on the down payment and loan terms they prefer.
Currently, the selection on Amazon Autos is limited to Hyundai vehicles, with the least expensive model starting at $22,510, excluding fees, taxes, and dealer charges. This limitation might be a drawback for those interested in used cars or vehicles from other manufacturers. Amazon, however, plans to address this by adding more car brands by 2025, aiming to broaden the variety available to customers.
One of the appealing aspects of Amazon Autos is the familiar interface that makes the car-buying process feel similar to shopping for other products on Amazon. The recognizable layout includes categories such as price, model year, and trim color on the left, while a list of products sorted by price is displayed in the center, making navigation easy and intuitive for users.
Despite these advantages, a noted downside is the lack of negotiating power. Amazon’s transparent pricing removes the haggling process, but it also means that buyers can’t negotiate the price, which may make the process feel less personal. Some customers might wonder if they could get a better deal in person. This limitation, combined with the current selection restricted to Hyundai models, may deter some from making a purchase through Amazon Autos initially.
In summary, Amazon’s entry into online car sales with Amazon Autos seeks to bring transparency and convenience to the car-buying experience, leveraging the familiar shopping interface known to Amazon users. However, the current restriction to Hyundai models, lack of used car options, and inability to negotiate prices could discourage some buyers. As Amazon plans to expand its offerings, these initial limitations may be addressed, potentially making Amazon Autos a more comprehensive and appealing option for future car buyers. Furthermore, it is essential to continue evaluating the competitive landscape, as Amazon enters a market served by established online car retailers like Edmunds, Carvana, Shift, and Vroom.
