Amazon's new deal with Hertz taps into $1 trillion used car market todayheadline

With economic uncertainty prompting consumers to tighten their spending and U.S. tariffs threatening to raise the cost of new vehicles, the used car market is expected to become an even more lucrative industry in the U.S. 

The demand is growing as pre-owned cars have become an increasingly attractive option for budget-conscious buyers.

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According to Mordor Intelligence, the U.S. used car market is projected to reach $1.05 trillion in 2025, with an annual growth rate of 2.71% through 2030.

In response to the booming demand, Amazon is deepening its investment in the automotive sector by partnering with Hertz, a prominent industry leader.

Amazon expands its pre-owned vehicle business by partnering with Hertz

Amazon Autos has teamed up with Hertz Car Sales to offer customers a new way to buy used cars directly through Amazon’s e-commerce platform. This will grow Amazon’s stake in the pre-owned vehicle market.

This partnership allows customers to browse, finance, and purchase pre-owned vehicles from Hertz’s fleet, including trusted brands like Ford, Toyota, Chevrolet, and Nissan. Once a car is bought, buyers can pick it up at participating Hertz Car Sales locations.

Benefits of buying a Hertz pre-owned car on Amazon Autos:

• Competitive Pricing: Vehicles often listed below Kelley Blue Book Suggested Retail Value
• Certified Quality: 115-point inspection on all pre-owned vehicles
• Peace of Mind: Includes a 12-month/12,000-mile limited powertrain warranty, 24-hour roadside assistance, and a 7-day/250-mile buy-back guarantee
• Flexible Financing: Access to financing options from trusted lenders
• Transparency: Detailed vehicle history and condition reports
• Seamless Process: Fully online purchase experience with e-signature and pickup scheduling

“Our goal is to reimagine the car-buying experience and meet customers where they are – whether online or in person – with convenience, confidence, and scale,” said Hertz Car Sales Executive Vice President Jeff Adams.

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This new service is initially rolling out in Dallas, Houston, Los Angeles, and Seattle for customers within a 75-mile radius of participating locations. A nationwide expansion to all 45 Hertz Car Sales locations is underway. 

The first chosen cities are key markets for used cars, with California holding over 24% of the national market share, while Texas is expected to see the fastest growth rate of 2.74% through 2030.

Amazon Autos fuels Hertz’s comeback strategy after Chapter 11 bankruptcy

Amazon  (AMZN)  launched Amazon Autos in December 2024, debuting with new Hyundai vehicles available for purchase and lease. Initially, customers could only browse listings but not complete purchases directly through its platform. 

With the addition of Hertz pre-owned vehicles, Amazon’s automotive platform now allows customers in over 130 U.S. cities to buy both new and used cars entirely online.

This expansion not only gives Amazon customers more choices and an easier way to buy a car, but also helps Hertz increase its visibility and vehicle sales after facing some tumultuous financial challenges.

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Hertz Global Holding  (HTZ)  is one of the world’s largest car rental and mobility solutions providers, operating under several brands, including Hertz, Dollar, Firefly, and Thrifty. The company has over 11,000 car rental locations in 160 countries and offers pre-owned vehicles through Hertz Car Sales.  

After filing for Chapter 11 bankruptcy in 2020 due to the Covid pandemic’s impact on travel and rental demand, which caused revenues to decline, Hertz emerged from bankruptcy in 2021 with a renewed focus on its business. 

Since then, Hertz has been restructuring, expanding its electric vehicle fleet, growing its retail footprint, and forming strategic partnerships, such as its latest one with Amazon.