Attendees look at Hyundai vehicles during the opening day of the 2023 New York International Auto Show (NYIAS) in New York, Wednesday, April 7, 2023.
Stephanie Keith | Bloomberg | Getty Images
Amazon Starting next year, car dealers will be able to sell cars through the company’s website, starting with South Korean automaker Hyundai. Said Thursday.
The company has slowly entered the car buying business over the years. launch digital showroom on that site Shoppers can research and compare vehicles, but they can’t buy directly through Amazon. Consumers can also purchase auto products such as replacement parts through the site.
Starting in 2024, Amazon will allow shoppers to buy new cars online and have them picked up or delivered to a local dealership. Consumers will be able to search and select available vehicles in their area and checkout on his Amazon using their preferred payment and financing methods. The company said the new feature “creates new ways for dealers to increase awareness of their selection and provide convenience to customers.”
Amazon CEO Andy Jassy said the partnership with Hyundai will change “the ease with which customers can buy cars online.” As part of the deal, Hyundai will equip its cars with Amazon’s voice assistant Alexa starting in 2025.
Share of online used car retailers Carvana and carmax They fell more than 7% and 6%, respectively, on the news. TrueCar stock fell as much as 6%, and Cars.com fell more than 3%.
This allows shoppers to buy cars on Amazon, but the final seller is still the dealer. Traditional automakers like Hyundai have a complicated relationship with their dealers, backed by laws in many states that make it difficult or illegal to bypass franchised dealers and sell new cars directly to consumers.
tesla and other electric vehicle startups Rivian Many states have developed workarounds for selling vehicles directly to consumers online. That could include starting sales in states that haven’t outlawed the practice, as Michigan has done, or taking legal action to challenge such laws.
There are less strict laws regarding used car sales, making it easier for companies like Carvana to sell used cars and trucks online and directly to consumers.
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