- You can now buy new cars and trade-in them through Amazon Auto
- Initially available in 48 U.S. cities
- More car brands will join the platform next year
The world’s leading online shopping marketplace announced a partnership with Hyundai Motor to begin end of last yearand Amazon Users can browse models and register interest, but cannot actually purchase them.
Now, Amazon has announced that Amazon Autos (Beta) is now open in 48 U.S. cities. The service allows buyers to browse vehicles at their leisure, pay with customized finance options (or pay cash, if you’re a golfer), or select optional protection products. You can pick up your order at your local dealer or schedule delivery of your shiny new car.
The whole idea is to beat Tesla in the direct-to-consumer (DTC) game by providing a convenient sales pipeline that avoids the need to sit in stuffy dealerships and haggle with salespeople.
According to numerous Cox Automotive Researchasked customers about their car-buying experience, and overall satisfaction with the traditional dealer model is declining in the United States. However, Jin Fan, global head of Amazon Auto, said the new online platform makes new car purchases more transparent, convenient and customer-friendly.
It can be said that Amazon Auto combines multiple online car buying tools into a single online destination, allowing customers to get an “instant valuation” of their existing used cars and trade them in for the price of a new car.
Although the final valuation of the above mentioned used cars will be determined by an independent third party.
Currently, Amazon Auto only lists select Hyundai vehicles, primarily the Ioniq 5, although the brand says it plans to launch new models and launch more car brands next year, while potentially expanding its business model beyond the United States.
Analysis: Just another shop window
South Bay Hyundai sales manager Steven Suh said in a statement that Amazon Auto “allows us to showcase our vehicles to millions of daily shoppers,” revealing that customers are “thrilled to receive their new car”.
So, no matter how novel it may seem, an Amazon car is just another online store window, and ultimately customers will step foot into their local dealership, either to pick up their car or when they eventually have to return for service, repairs and routine maintenance hour.
Sure, it avoids awkward haggling with salespeople in the first place, but it still doesn’t completely eschew the “traditional” dealer model.
Secondly, Amazon did not clearly explain how the test drive arrangement will be carried out. Interested parties may contact local dealers through the online market to arrange a test drive time. Free returns and Prime shipping don’t work for something as big and expensive as a car.
Alas, Tesla has had success with mobile technician services and automation of service plans and routine maintenance. Remote diagnostics enables its mechanics to troubleshoot issues anywhere in the world, and if the vehicle absolutely needs to go to a shop, Tesla will recommend and book it through one of its trusted local repairers.
With fewer mechanical parts, electric vehicles require less frequent repairs, so more manufacturers are looking for more convenient ways for customers to interact with their products.
Tesla has proven that you don’t necessarily need a dealer network to be successful, and Hyundai is clearly testing the waters to see if it can also future-proof its brand with increasingly digital offerings.