Buying a car often feels like a major hassle. Fortunately, more options for purchasing cars online have emerged, which many people appreciate. Take Tesla, for example, where the listed price is what you pay—no dealer markups. You can even finance the car directly through the Tesla website. However, most car purchases still go through local dealers, who can sometimes charge significantly more than the list price due to high demand.
Amazon aims to change the car-buying experience. They’ve announced plans to start selling cars directly from Amazon.com next year, beginning with Hyundai models. This move suggests Amazon wants to become more involved in the car-buying process, and other companies may soon follow.
Yet, don’t expect a completely hassle-free experience right away. There are some ways to buy cars today that bypass traditional dealerships. New companies are taking a direct-to-consumer approach, where you visit their website or a company-owned storefront and pay a set price without haggling. But these types of sales make up a small fraction of new car purchases in the U.S., with most still happening through dealerships. Dealerships adjust prices based on supply and demand, often raising prices when there’s high demand.
Buying a car on Amazon will be different from buying everyday items like cat food. You won’t be able to just click “Buy it Now” and expect free Prime shipping. Instead, the process will involve local dealers. In its announcement, Amazon emphasized that it would help dealers showcase their inventory and offer convenience to customers. This means Amazon will act as a platform for local dealers, not as a direct seller of cars.
While negotiating with dealerships can be unpleasant, it does allow for some flexibility in pricing. Buying through Amazon may remove the option to haggle, potentially resulting in higher prices. However, there are advantages to Amazon’s approach. Dealerships can set their prices on Amazon’s platform, and apart from picking up the car, that could be the extent of your interaction with them. Customers will be able to search for specific models and trims and find the nearest available options. While you can usually do this on manufacturer websites, those sites are often cumbersome. Amazon, despite its flaws, is familiar to most users.
You might also find it easier to compare prices, though the details of Amazon’s car search function are still unknown. If dealerships continue to set prices on Amazon, ideally, you’ll see a range of prices from different dealerships near you, helping you find the best deal.
Amazon’s growing interest in the automotive industry is clear. Alongside plans to sell Hyundai cars, Amazon will also support Hyundai’s cloud infrastructure with Amazon Web Services, and future Hyundai models will feature Alexa integration.
The best future for car buying might be direct-to-consumer. Local businesses are important, but dealerships often provide a poor customer experience and inflate prices. Stricter regulations on dealership sales could be a middle-ground solution, but buying directly from manufacturers remains preferable.
Amazon could help facilitate direct sales. Car manufacturers might sell directly to consumers through Amazon’s platform, although it’s uncertain if they’d relinquish that control to Amazon. If Amazon can significantly improve the car-buying experience, it might persuade them to consider this option.