Amazon, the e-commerce giant known for selling everything from books to electronics, has officially entered the online car market. In a move that could reshape the automotive industry, Amazon has partnered with Hyundai to allow customers to buy new Hyundai vehicles directly through its platform. This initiative, called Amazon Autos, is currently available in 48 major U.S. cities and offers a streamlined, end-to-end online car buying experience1.

A New Era of Car Buying

Amazon Autos aims to simplify the often complex and time-consuming process of buying a new car. Customers can now browse, order, finance, and schedule the pickup of a new Hyundai vehicle from their local participating dealer, all without leaving the comfort of their homes1. This digital shopping experience promises greater transparency, convenience, and customer-friendliness3.

The platform allows customers to search for available vehicles at their local dealerships by make, model, trim, color, and features3. They can also get an instant valuation for their current vehicle and apply it as a trade-in towards the purchase of a new Hyundai4. Amazon emphasizes transparent, upfront pricing, eliminating the need for negotiation, a common pain point for many car buyers2.

How Amazon Autos Works

The process of buying a Hyundai on Amazon is designed to be simple and intuitive:

• Browse and Search: Customers can visit amazon.com/autos, search for "Amazon Autos" on Amazon.com, or use the mobile app to explore available Hyundai vehicles at participating local dealerships2.
• Select a Vehicle: Customers can filter their search by various criteria, including model, trim, color, and features, to find the perfect Hyundai.
• Trade-in Valuation: Customers can receive an instant valuation for their existing vehicle, provided by an independent third party, and apply it towards the purchase of their new car4. Customers complete the trade-in process by dropping off their old vehicle at the dealer when picking up their new Hyundai5.
• Financing: Customers can secure financing through Amazon or choose to pay for the vehicle in full4.
• Checkout: Once the customer has selected a vehicle and finalized their financing, they can complete the checkout process online. All prices on Amazon Autos are non-negotiable6.
• Schedule Pickup: Customers can then schedule a convenient time to pick up their new car from the dealership1.
• No Delivery Options: Currently, there are no delivery options available for vehicles purchased through Amazon Autos. Customers must pick up their cars from the dealership6.

Available Hyundai Models

Amazon Autos offers a wide selection of new Hyundai models, including:

• 2025 IONIQ 5 N
• 2024 IONIQ 5
• 2025 TUCSON (Hybrid and Gasoline)
• 2024 TUCSON (Hybrid, Plug-in Hybrid, and Gasoline)
• 2025 KONA Electric
• 2024 KONA Electric
• 2024 KONA (Gasoline)
• 2025 SANTA FE (Hybrid and Gasoline)
• 2024 SANTA FE (Gasoline)
• 2025 IONIQ 6
• 2024 IONIQ 6
• 2025 ELANTRA (Gasoline)
• 2024 ELANTRA (Gasoline)
• 2025 ELANTRA N (Gasoline)
• 2024 ELANTRA N (Gasoline)
• 2024 ELANTRA Hybrid
• 2024 SONATA (Hybrid and Gasoline)
• 2024 VENUE (Gasoline)
• 2024 SANTA CRUZ (Gasoline) 7

Amazon's Automotive Ambitions

While Hyundai is the exclusive launch partner for Amazon Autos, the company has ambitious plans to expand the program. Amazon intends to add more Hyundai dealerships and include vehicles from other manufacturers in the coming year2. They also plan to expand to more cities, add features like leasing, and offer expanded financing options8.

This move into online car sales is part of Amazon's broader strategy to become a major player in the automotive industry. The company already generates significant revenue from selling automotive parts and accessories9. By partnering with Hyundai, Amazon is leveraging its massive customer base and e-commerce expertise to potentially disrupt the traditional car buying experience3.

Potential Impact on the Automotive Industry

Amazon's entry into online car sales has the potential to significantly impact the automotive industry. By offering a more convenient and transparent car buying experience, Amazon could put pressure on traditional dealerships to adapt and innovate9. Studies indicate that a growing number of car buyers, particularly younger generations and those interested in electric vehicles, are showing a preference for conducting some or all of the car-buying process online10. For example, CNBC reported that approximately 25% to 30% of car buyers prefer online car buying, with that number rising to 40% for electric vehicle buyers10.

For car manufacturers, partnering with Amazon could provide a new sales channel and access to a wider audience12. Amazon Autos can help Hyundai dealers connect with millions of Amazon customers and showcase their vehicles to a larger audience2. However, it could also raise concerns about potential disintermediation and the erosion of brand control13.

While Amazon Autos streamlines the initial steps of the car buying process, it's important to note that customers still need to interact with dealership associates for aspects like financing and paperwork14. This suggests that Amazon is positioning its program as a complement to, rather than a replacement for, traditional dealerships.

Customer Reviews and Feedback

Initial customer feedback on Amazon Autos has been mixed. Some users appreciate the convenience and transparency of the platform, while others express concerns about the lack of negotiation and the limited selection of vehicles11. One user described the experience as similar to shopping on Amazon for other products, with a familiar interface and easy navigation15. However, this user also expressed concerns about potentially getting a better deal by going to a dealership in person15.

Another user highlighted the potential for Amazon Autos to improve the car buying experience by eliminating the need to interact with salespeople and negotiate prices11. However, some users have pointed out that the platform still relies on dealer inventory, which may limit the availability of certain models and configurations14.

Synthesis

Amazon's launch of Amazon Autos represents a significant step into the online car market. By partnering with Hyundai, Amazon offers a new way for customers to buy cars, emphasizing convenience and transparency. The platform allows customers to browse, finance, and purchase Hyundai vehicles online, with pickup scheduled at a local dealership.

This initiative has the potential to reshape the automotive industry by influencing consumer behavior, providing car manufacturers with a new sales channel, and encouraging traditional dealerships to adapt. While the long-term impact remains to be seen, Amazon Autos signals a shift towards online car buying and highlights Amazon's growing ambitions in the automotive sector.

Works cited

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