Amazon expanded into online car sales on Tuesday with the launch of Amazon Autos, a new e-commerce platform that enables customers to find, order, and purchase new cars, trucks, and SUVs directly from participating dealerships. The launch is taking place in 48 U.S. cities, including major markets such as Atlanta, Boston, Chicago, Los Angeles, and New York. This marks the beginning of Amazon’s push into the automotive sales sector, following its announcement in 2023 to enter the market in the second half of 2024. The company plans to expand the service in 2025 to additional cities and introduce more car manufacturers to the platform.
Amazon Autos offers a range of features designed to make the car-buying process more transparent and efficient. Customers can search for available vehicles at participating dealerships by make, model, trim, color, and features. The platform also provides trade-in valuations for customers’ existing vehicles, offering instant assessments from an independent third-party source. Amazon Autos allows users to view upfront pricing details, choose from various financing options, and complete the entire transaction online, including e-signing documents. Once the purchase is finalized, customers can schedule a vehicle pickup at their chosen dealership.
Fan Jin, the global head of Amazon Autos, emphasized the platform’s goal, saying, “We’re partnering with dealers and brands to redesign car shopping, making it more transparent, convenient, and customer-friendly.” The new service is designed to function in a way that closely mirrors the rest of Amazon’s e-commerce ecosystem. Shoppers can search for vehicles, customize their preferences, and access comprehensive pricing information without the need for negotiation.
This approach eliminates the traditional haggling associated with car sales, providing a fixed price that includes all taxes and fees. Financing options are available through Amazon Autos, although the actual lending process remains handled by the dealerships.
One of the key advantages of Amazon Autos is its emphasis on a simplified, transparent purchasing experience. Customers can easily search for cars based on a wide array of criteria, secure financing or pay in full, and schedule vehicle pickup, all from the comfort of their homes.
The platform also ensures transparent pricing, with no hidden fees or surprise costs. Buyers can access upfront pricing from local dealers, eliminating the need for the negotiation that typically accompanies traditional car buying. Additionally, trade-in valuations are available immediately, helping customers understand the value of their current vehicles and making it easier to factor those into the purchase process.
Hyundai is the first automaker to partner with Amazon on this initiative. For Hyundai dealers, the collaboration provides an opportunity to tap into Amazon’s vast customer base without having to manage an online platform or inventory system. This partnership addresses a key pain point in the traditional dealership model, where many dealership websites fail to meet modern user experience expectations. Studies have shown that 69% of car buyers prefer to complete more of the car-buying process online, and Amazon’s user-friendly platform could provide a solution for those looking for a more convenient and efficient way to purchase a vehicle.
Amazon’s entry into the car sales market also offers significant benefits for the company. The platform allows Amazon to enter the lucrative automotive sector without having to deal with the complexities of vehicle storage or shipping logistics. Amazon Autos will act as an intermediary, connecting buyers and dealerships, while leaving the management of vehicles, delivery, and other operational challenges to the dealerships themselves. While the service currently focuses on new cars, Amazon plans to expand the platform to include used vehicles and potentially other manufacturers in the future, further extending its reach in the automotive market.