If there is one part of car ownership that both casual motorists and seasoned car enthusiasts dread, it would be the tough, challenging prospect of buying a car at a dealership.
More often than not, new and used car buyers expect high-pressure sales tactics, a barrage of useless or unnecessary add-ons, and an overall bad experience trying to negotiate pricing or financing terms with someone wearing a bowtie and a quarter-zip.
In late 2024, e-commerce giant Amazon (AMZN) made a shocking announcement when it said it would partner with Hyundai to sell new cars on its online car-selling platform, Amazon Autos. However, they seek to move up to more fertile ground in the industry.
Move over, Carvana, Amazon might start selling used cars
In an appearance on Automotive News’s Daily Drive podcast, Amazon Autos director Fan Jin noted that the e-auto sales platform would be “getting into used cars soon.”
“We’re adding more dealers, and we’re excited to add not just new inventory for those dealers, but also used inventory,” they said, “That’s really our next biggest milestone.”
In its current deal with providing Amazon customers with new Hyundais, Amazon allows buyers to buy directly from the inventory available at participating Hyundai dealerships. They are presented with a price and that price alone without any of the headaches and haggling seen at a brick-and-mortar franchise dealership, where markups, hidden costs, and unnecessary extras are to be expected.
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Amazon Autos customers only have to choose a car they like at the price they like, agree to financing terms, or pay for it in full online and e-sign some paperwork. They only step into a dealership when they finally pick up and take the car home.
“They love the transparency, they love the convenience, they love the trust of buying it through Amazon,” Jin said. “We see a lot of customers buy [cars] off-hours, nights and weekends, where we see a lot of traffic.”
Traditionally, the car buying experience is an affair that can take up to multiple days, which is highly dependent on the dealer experience itself. According to Jin, their simple-to-use car-buying platform allows people to buy cars from unusual places.
“We’ve got great customer stories about ‘I bought a car at the gym,’ or ’I bought this car in my pajamas at home and it was so convenient to see cars from multiple dealers in my area and then to be able to choose the car that works for me.’”
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If they start selling used cars, Amazon will enter a competitive space. According to its potential competitor’s Q4 and full-year 2024 results, Carvana (CVNA) recorded record revenue of $13.67 billion in 2024 while selling 416,348 cars in the process.
But when it comes to used cars, Amazon has associated challenges that other platforms like Auto Trader, cars.com, CarGurus, and Carvana have already tackled.
Used cars are used cars, and the ‘baggage’ they carry could hide in plain sight, no matter how many pictures are on the listing online. Sites that offer vehicle history reports and detailed inspections are highly valued. Jin notes that Amazon seeks to offer used car dealers “a full e-commerce transaction,” however, the e-commerce giant recognizes the pragmatic needs of used car buyers.
“They may start online, then go to the dealer to look and have a test drive, then come back, think about it, and then finish the purchase online,” they said.
Amazon.com, Inc. is traded on the NASDAQ as AMZN
Carvana is traded on the New York Stock Exchange as CVNA
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