This is the 12 months you possibly can finally buy a car on Amazon. Well, one kind. At last.
November 16, 2023 at the Los Angeles Auto Show Amazon and Hyundai made a big statement: I’m starting sometime in 2024latest pilot program will allow buyers to not only browse Hyundai cars on Amazon.com, but additionally pay for them.
How professor of selling, I followed this story closely. “Customers will be able to buy new vehicles directly on Amazon,” said the director of the online retail giant during the announcement. drawing shouts from the audience.
However, I believe this framing may be a little too simplistic. The real story is more complex – and more interesting.
Visit to the digital showroom
It’s still not yet possible for the average person to buy a car on Amazon – I do know because I’ve tried. Amazon and Hyundai haven’t publicly announced a start date for the pilot and didn’t respond to my inquiries.
But in the meantime, you possibly can still take a step towards purchasing a latest hybrid through the online store.
Since 2018 Hyundai launched “electronic living room” on Amazon, which allows buyers to browse cars and almost, but not quite, buy them.
Right now, in case you open Amazon.com and seek for “Hyundai,” you will see the Hyundai website on Amazon.com as the first search result. You can click on this page, enter your zip code and see the latest Hyundais which are on the market at participating dealers near you.
The current system allows you to select a model, finish and color, make a choice from financing or leasing, and estimate the monthly installment.
However, from this date – January 26, 2024 – you can not actually make a transaction with a car in the cart. Instead, once you have chosen the car you would like, Amazon will direct you to your local dealer so you possibly can select financing/leasing and pay for the car at the dealership.
Moreover, Amazon says that the pricing details on the site are indicative and that “final pricing details are determined by Hyundai dealers.” In other words, Amazon provides car buyers with information but doesn’t allow them to actually buy a car.
As I’ll explain below, adding the ability to try would be a big deal. And that is exactly what Amazon said it will do soon.
But wait: Why cannot I buy a car on Amazon anymore? I can buy the whole lot else, right?
In the USA – he says generally demanding existing car manufacturers sell their cars through franchised dealers. Some states have allowed electric vehicle makers like Tesla to sell directly to consumers.
To comply with regulations governing franchised dealers, Amazon cannot list vehicles on the market in the same way it lists, say, books or socks. Instead, it must work with dealers.
Amazon’s plan is to expand its Hyundai digital showroom by 18 Hyundai dealers in five states. This will allow nearby shoppers to not only browse current inventory, but additionally pay for a latest vehicle.
This signifies that while the buyer pays for the vehicle and select financing or leasing options on Amazon, the local dealer will be the seller of record and Amazon will act as sales channel.
By complying with franchise regulations while spreading awareness of dealer inventory and providing buyers with a convenient way to purchase latest vehicles, Amazon has been incredibly smart.
And while this pilot program will start with Hyundai, it probably won’t end there. Amazon said it plans to expand the program to other car brands sooner or later – it hasn’t announced when.
How 2024 will change the way we buy cars – a little
So if reports are to be believed, sooner or later in 2024, Amazon will allow customers to try a Hyundai like they might try a bottle of shampoo.
This could make a lot of individuals glad. This would reach a growing segment of buyers who trust Amazon, prefer to complete formalities online and don’t want to haggle with sellers. It could also attract more buyers to participating dealers, increasing their sales.
But I’m skeptical that this “best” likelihood will make a difference, a minimum of initially.
To start with, Amazon will only sell latest Hyundais. Buyers looking to compare the Hyundai to a competing model will be out of luck. Amazon can even not sell used vehicles or allow trade-ins. This signifies that a large a part of consumer needs will remain unmet.
Car dealers might also be hesitant to work with Amazon. First, they might lose the opportunity to construct relationships with buyers and upsell them.
But either way, it won’t be long before you possibly can add toiletries, kitchenware, and a latest Hyundai to your Amazon cart.
