Click, click — Vroom.
Over the last year and a half, Amazon has gradually expanded its car sales operation, now reaching over 130 cities, including major locations like New York, Los Angeles, and Dallas, as reported by a prominent news source.
Initially launched as a trial with Hyundai, the platform has since grown to feature vehicles from brands like Kia, Mazda, Subaru, Chevrolet, and Jeep.
Amazon Autos made its debut in late 2024, enabling customers to search for and purchase cars from local dealers.
The aim? To allow buyers to handle most of the purchasing and financing processes from the comfort of their homes, minimizing the time they spend in traditional dealerships.
However, Amazon clarifies that this does not eliminate retail stores entirely. Instead, it serves as a remote middleman, facilitating much of the process online.
Research indicates that many people actively seek to avoid the hassle of visiting a dealership in person.
A former auto analyst, Jesse Toprak, who now heads an online auto marketplace, mentioned that some studies reveal that customers would prefer a root canal over negotiating car prices at dealerships.
With many Americans now accustomed to online shopping and Millennials beginning families, the car buying process is likely to shift increasingly online.
Toprak referred to suburban parents purchasing Kias as “digital natives,” highlighting a new trend in consumer behavior.
According to Amazon, online mediation could significantly alter the traditional car buying experience.
Dealers must pay a fee to list vehicles on Amazon; however, consumers incur no extra costs for purchasing through this platform.
This arrangement benefits dealers since their cars can be showcased to potential buyers relaxing on their couches with their smartphones.
Matthew Phillips, a Kia dealership owner in California who recently joined Amazon, expressed enthusiasm about the initiative, labeling it “innovative.” Yet, he’s only sold one car—a $55,000 minivan—in the past month and a half. He remains optimistic about future sales growth.
“Customers feel some comfort with Amazon, but it’s definitely still early in the game,” he noted.
Hundreds of dealers have begun registering to sell cars through Amazon.
“While we’re in the initial phases, we’ve observed a strong response from both customers and dealers. We’re committed to increasing vehicle availability around the country,” said Fan Jing, the Amazon Auto Division Director.
This expansion poses a challenge to traditional retail operations, particularly with such significant purchases that aren’t yet commonly made online.
Buying a car is a significant financial commitment, heavily regulated by laws that generally require extensive documentation in person, which complicates Amazon’s offering.
Dealers argue that the intricacies involved in new car purchases—like working with lenders and verifying credit—mean that transactions usually need to occur face-to-face.
A drawback for buyers is the inability to physically inspect the vehicle before spending substantial amounts. This has understandably made some dealers skeptical about whether online platforms like Amazon can capture a significant share of car sales.
Recalling the early days of Amazon Auto, Alex Lewis, a sales manager at a dealership in California, explained that initially, buyers showed up after a few clicks to finalize their purchases with minimal documentation. However, complications arose as more people began using the service.
He mentioned stories of customers arriving with incorrect paperwork or issues with trade-ins. In some instances, a vehicle listed on Amazon might already have been sold in-store to another customer.
“I think it’s got potential, but it will take time,” Lewis remarked, adding that sales have fluctuated from about ten cars sold per month initially to roughly five recently.
