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Amazon is reshaping the car buying experience by enabling customers to purchase vehicles online, eliminating the need for trips to traditional dealerships or even test drives.
Recently, the company announced that residents of 48 major U.S. cities, such as Los Angeles, Miami, New York, and Portland, can now buy cars through its platform via “Amazon Autos.” This initiative marks a significant expansion in Amazon’s retail offerings.
Initially, Amazon is collaborating with Hyundai, planning to expand its partnerships to include additional manufacturers and cities in the future. The vehicles available are all brand new, starting at a price of $22,500, with options including popular models such as the Hyundai Kona, Sonata Hybrid, and Elantra.
As Amazon ventures into online car sales, it enters a competitive marketplace already featuring other online retailers like Edmunds, Carvana, Shift, and Vroom. However, unlike those platforms, which offer both new and used vehicles, Amazon’s focus is currently on new cars only.
The introduction of Amazon Autos raises questions about the buying experience. Below, we explore some of the advantages and disadvantages that users might encounter with this new feature.
Advantage: Price Transparency
One significant benefit offered by Amazon Autos is its transparent pricing structure. When exploring the details of a specific vehicle, such as the new 2025 Hyundai Elantra SE, I found a comprehensive price breakdown that included a variety of additional costs, such as $210 for carpeted floor mats. In addition, the platform allows for easy comparison of dealer charges in relation to the Manufacturer Suggested Retail Price (MSRP).
Estimating monthly payments is also straightforward, as users can adjust parameters such as down payments and loan terms directly on the site. Furthermore, the condition of the vehicle, mileage, and warranty details are clearly displayed, assisting buyers in making informed decisions.
Disadvantage: Limited Selection
Currently, the vehicles available through Amazon are exclusively from Hyundai, which limits choices for consumers looking for other brands. While Amazon plans to broaden the range of manufacturers by 2025, the existing selection is notably narrow. Presently, the lowest-priced vehicle starts at $22,510, exclusive of additional fees, taxes, and dealer charges, and no used cars are available.
Advantage: User-Friendly Interface
Amazon Autos provides a shopping experience similar to the standard Amazon platform, which is a familiar environment for many users. The left-hand sidebar features filters such as price, model year, and trim color, while the center displays the vehicle listings sorted by price, making navigation intuitive and straightforward.
Disadvantage: Lack of Negotiation
Amazon’s approach to pricing is designed to be straightforward, stating it removes the need for negotiations. Buyers have the ability to complete the entire purchasing process, including securing financing, without any direct interaction with sales personnel regarding price discussions. While this can reduce the stress typically associated with car buying, it may also lead to concerns over whether the price being paid is the best available without room for negotiation.
This lack of personal engagement and the limited vehicle selection significantly influenced my decision to hold off on purchasing a vehicle from Amazon at this time.
Source
www.entrepreneur.com