Short dive:
- E-commerce giant Amazon has launched its retail partnership with Hyundai Motor Co. in 48 U.S. cities. Deal allows car shoppers to purchase a new Hyundai vehicle on Amazon and schedule pickup at a local dealer, the retail giant announced on December 10th.
- The vehicles are offered via Amazon’s new online shopping platform.”Amazon Auto,” offering financing, extended warranty plans, and trade-in options. US cities include New York, Boston, Chicago, Los Angeles, Miami, Seattle, San Francisco, and other large metropolitan areas.
- “We are working with dealers and brands to redesign automotive shopping, making it more transparent, convenient and customer-focused,” Fan Jin, global head of Amazon Autos, said in a statement.
Diving information:
Amazon says it will add more U.S. Hyundai dealerships to the Amazon Autos platform next year, including brands from other OEMs, as it adds new cities and features to its online car buying platform.
“We are thrilled to have Hyundai as our exclusive launch partner and look forward to welcoming additional brands and expanding our selection for customers as the program grows,” Jin said in the release.
Amazon Autos touts the program’s pricing transparency, “eliminating the need for negotiation.” Customers can complete the payment process entirely online, including selecting trim, color options and scheduling a pickup time at a Hyundai dealership.
Vehicle trade-in values are provided by an independent third party, and customers can apply the amount to the purchase price of their new car. Customers complete the trade-in process by dropping off their old vehicle at the dealership when picking up the new Hyundai model.
Because customers pick up their new vehicles at local Hyundai dealerships, there are no conflicts involving state dealer franchising laws. These regulations have limited Tesla’s ability to sell its electric vehicles in some states, including in Texas, where the company is based today.
The online car buying platform also provides a valuable digital sales channel to dealers in addition to its own websites. Amazon Autos can potentially connect dealers with millions of Amazon customers, as well as simplify the initial stages of vehicle research and purchasing.
“Listing our inventory on Amazon represents a game changer in how we connect with car buyers,” Steven Suh, general manager of sales for South Bay Hyundai in Torrance, California, said in the release.
Amazon also encourages customers and dealers to provide feedback, which it will use to make improvements to the car buying experience for both customers and dealers.
Hyundai was one of the first automakers to partner with Amazon when it launched its digital showroom in 2018, which allows customers to configure a vehicle online and calculate the price, then visit a local Hyundai dealership to complete the sale.
Hyundai also announced in November 2023 that it will integrate Amazon’s Alexa digital assistant into its next-generation vehicles in 2025.