Starting in 2024, Amazon's U.S. store will allow auto dealers to sell vehicles, with Hyundai being the inaugural brand for customers to buy, marking a significant development in online car sales.
Shoppers on Amazon can explore a variety of vehicles by specifying preferences like model, trim, color, and features. They can select their desired car and complete the purchase online, including payment and financing options.
In a multi-year agreement, Hyundai will integrate Amazon's virtual assistant, Alexa, into its new cars from 2025. Additionally, Hyundai has secured Amazon's cloud services for enhanced technological capabilities.
Amazon has not disclosed specifics regarding the number of participating dealers or the structure of the relationship with dealers in its announcement about selling vehicles on its U.S. platform.
While Amazon's initiative involves dealer collaboration, the trend of direct-to-customer sales has grown, notably spearheaded by companies like Tesla, emphasizing a departure from the conventional dealership model.
The announcement from Amazon had a notable impact on the stock prices of online used car retailers, with companies like CarMax and Carvana experiencing a decline of over 5%.