In the upcoming year, Amazon is set to revolutionize the car-buying experience by allowing customers to make direct purchases of vehicles on its platform. The tech giant has announced a groundbreaking deal with Hyundai, enabling authorized dealerships to showcase and sell their cars through the Amazon website.
Unlike the previous setup, where customers could explore car showrooms and compare prices on Amazon without the option to make a direct purchase, this new collaboration will enable customers to browse a selection of Hyundai models and complete the purchase using their preferred payment methods. Following the transaction, customers can choose the convenience of picking up the purchased car at a nearby dealership or opt for home delivery.
It’s crucial to note that the ultimate seller of the vehicle remains the dealership, with Amazon serving as the intermediary between the customer and the dealership. While the announcement focuses on Hyundai, it remains unclear whether Amazon is in talks with other automakers to include their vehicles on the platform.
Amazon, gradually venturing into the automotive sector, has previously offered virtual showrooms for specific brands and introduced price comparison tools. The platform also facilitates the purchase of certain car parts and accessories.
As part of the Hyundai collaboration, Amazon’s voice assistant, Alexa, is set to be integrated into Hyundai vehicles starting in 2025. Additionally, Hyundai will leverage Amazon Web Services (AWS) for cloud services.
Car shopping has often been a daunting task for many consumers, with dealership experiences ranking high on the list of frustrations. Notably, Tesla has championed a direct-to-consumer (DTC) approach, allowing customers to buy vehicles directly through the company’s website. However, existing laws in 48 states limit or prohibit manufacturers from selling vehicles directly to consumers. Tesla’s influence has sparked changes in this landscape, although legal challenges persist.
Amazon’s collaboration with Hyundai takes a strategic approach, bypassing potential legal hurdles by ensuring that dealerships remain integral to the purchasing process. While many dealerships already facilitate online car transactions through their websites, Amazon’s extensive platform, boasting millions of daily users, is poised to simplify and enhance the car-buying experience further.