For the first time, Amazon is going to sell cars, starting with vehicles from Hyundai.
The e-commerce giant plans on kicking off the sales sometime next year. Users will be able to go on Amazon.com, look at the available Hyundai vehicles for their area, and buy the desired model through an online checkout process. A customer can then pick up the vehicle or have it delivered to them by a local dealership.
The car-buying experience promises to be the same as buying any other product on Amazon. But users will also be able to choose financing options to pay for the vehicle. “You’ll be able to compare available selection at local dealerships and see transparent pricing,” says Amazon VP Marty Mallick.
(Credit: Amazon/Hyundai)That said, the online car sales will continue to rely on local dealerships, which will be providing Amazon the inventory of Hyundai vehicles available for sale.
So far, only Hyundai has announced it’ll sell vehicles on Amazon. But it looks like Amazon is courting other automakers. “This new shopping experience will create another way for dealers to build awareness of their selection and offer convenience to their customers,” Amazon says.
The companies introduced the deal on Thursday during the Los Angeles Auto Show, where they announced a strategic partnership that includes installing Amazon’s Alexa assistant in Hyundai vehicles by 2025.
On the car-buying experience, Hyundai noted that customers “continue to experience frustration” when purchasing a vehicle. “They see how easy it is to buy all the products on Amazon and they want that convenience when buying a car,” says José Muñoz, Hyundai’s global chief operating officer at the auto show.
There’s still a lot of unknowns, like how Amazon will price the vehicles or if Prime subscribers will receive any additional benefits. But the e-commerce giant has long been rumored to be interested in selling cars. It now seems it finally found a partner in Hyundai when other automakers, such as Tesla and Rivian, already sell their vehicles online.
Mallick adds that “testing” of the Amazon car-buying system is already underway.