Amazon and Hyundai Partner to Revolutionize Online Car Buying
Amazon and Hyundai have joined forces to revolutionize the way cars are sold online. While dealerships will still play a crucial role in the transaction, this partnership aims to empower consumers with more information and control. Here’s everything you need to know about the upcoming launch of car-buying on Amazon.
Hyundai’s Partnership with Amazon
This collaboration between Hyundai and Amazon brings several changes for the automaker. Hyundai will utilize Amazon Web Services (AWS) as its cloud provider and integrate Amazon Alexa into its next-generation models. However, the most significant development is that starting in 2024, customers will have the opportunity to purchase a brand-new Hyundai directly through Amazon.
Marty Mallick, VP of Worldwide Corporate Business Development at Amazon, explained the process: “The online shopping experience will allow you to purchase a car through Amazon’s US store. You’ll be able to compare the selection at local dealerships and see transparent pricing. You can choose your preferred model, color, and features and check out entirely online. Then you pick up your vehicle from your local dealership at a time that works best for you.”
Benefits for Customers
This new service will be available to the public in the near future. While Hyundai is the first automaker to partner with Amazon, others are likely to follow suit. The motivation behind this collaboration stems from customer dissatisfaction with traditional car-buying experiences, which often involve significant markups. Although markups could still be an issue in this new system, the increased transparency and the ability to compare prices across different dealerships empower customers to make more informed decisions and potentially secure better deals.
Implications for the Automotive Industry
Amazon’s entry into the car-selling arena is expected to attract the interest of other automakers. The announcement caused a temporary dip in stocks for Carvana, Carmax, and TrueCar, with losses of up to 7%. However, these stocks quickly rebounded as the market adjusted to the news.
With this groundbreaking partnership between Amazon and Hyundai, the future of online car buying looks promising. Consumers can look forward to a more transparent and convenient purchasing process, while dealerships may need to adapt to the changing landscape and offer competitive pricing to stay relevant.