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Amazon Expands Its Catalog to Include New Car Sales

  • The e-commerce giant had announced its plan to sell cars months ago.

  • Amazon Autos has launched in 48 cities, starting with Hyundai as its sole partner.

Amazon expands its catalog to include new car sales
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When Jeff Bezos founded Amazon, it began as an online bookstore. Over time, it transformed into a sprawling e-commerce empire, offering everything from groceries to electronics. Now, Amazon has entered a new frontier: selling new vehicles.

Amazon Autos. Amazon Autos is the company’s newly launched initiative dedicated to selling new cars. Announced at the end of last year, this venture is now live and marks Amazon’s entry into a segment that has long eluded its vast catalog.

Limited to the U.S., starting with Hyundai. For now, the service is available exclusively in the U.S., spanning 48 cities. Hyundai is Amazon Autos’ inaugural partner, with its full lineup of vehicles listed for sale.

Fan Jin, the global head of Amazon Autos, said: “We’re partnering with dealers and brands to redesign car shopping—making it more transparent, convenient, and customer-friendly.”

How it works. Unlike Amazon’s hallmark “one-click” shopping, buying a car on Amazon Autos involves a more detailed process. Customers can browse using filters and select options for cash purchases or financing. Once the purchase is completed, buyers schedule a pickup at a local dealership.

No haggling. Amazon Autos departs from the traditional dealership experience by eliminating price negotiation. Both cash and financing prices are fixed, appealing to customers seeking a straightforward buying process.

Deliver your used car as part of the payment. One standout feature is the ability to trade in a used car as part of the payment, which can offset the purchase price.

Amazon’s role: an intermediary, not a dealer. Amazon itself doesn’t sell the cars. Instead, it acts as a platform connecting customers with manufacturers and dealerships. U.S. laws prohibit companies like Amazon from selling cars directly.

It’s not like buying toothpaste. While Amazon’s entry into the car market is a significant development, it’s not without skepticism. Mike Stanton, CEO of the National Automobile Dealers Association, remarked, “I don’t think I’m going to go over and buy a car after I buy my toothpaste.” However, he said that simplifying the process could appeal to some buyers.

Eddie Hall III, CFO of Hall Automotive Group, echoed this sentiment: “Customers still want to come in to see a car.” Nevertheless, he recognized the potential for Amazon’s platform to evolve and streamline the car-buying process.

Image | Amazon

Related | Amazon Reveals Its Own Homegrown Model for the Generative AI Race: Nova. It Wants to Compete With OpenAI

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