Can Amazon And Hyundai Solve Online Car Sales?

Amazon is piloting a program to allow car dealers to sell Hyundai vehicles through the tech giant's website. The plan is to ultimately offer Amazon customers the same experience they have when buying just about everything else sold on its website — meaning a one-stop shop. The program will begin with the Korean automaker but will expand to other brands before the end of 2024. But selling cars online poses challenges — such as valuing trade-ins and complying with regulations. Among dealers, the project has inspired enthusiasm, skepticism and in some ways, fear.

Chapters:
0:00 - 2:01 Intro - Can Amazon and Hyundai solve used car sales?
2:09 Chapter 1- The shift online
5:13 Chapter 2 - The partnership
7:50 Chapter 3 - The reaction
12:02 Chapter 4 - The challenges

Producer: Robert Ferris
Editor: Darren Geeter
Animation: Christina Locopo
Senior Managing Producer: Tala Hadavi
Additional footage: Getty Images, Amazon, Hyundai, Ford, Honda, General Motors
Additional sources: Hyundai, Amazon, FactSet

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Can Amazon And Hyundai Solve Online Car Sales?

[Pwndbythnb]

Car Dealerships deserve to go under with the ridiculous 2x price gouging theyve been doing post COVID.

[Jimmy-phxn]

As long as there are no junk fees. This will be hugely successful.

[Suspinded]

Proof the dealership system is broken : The dealership lobby pushes to prevent direct manufacturer to customer sales of cars. Instead of proving their value, they lobby to legislate to force their relevance.
Most dealerships would go extinct the moment direct to consumer sales became a permissible thing.

[gravityawsome]

They gotta get past the dealership lobbyists first.

[mikeshafer]

I don't think I would ever buy a car from a dealer ever again. My last two cars were Tesla and Rivian. I bought them online. No haggling over price. No greasy used car salesman. The fees are all there in black and white. Nice and easy!

[mangodiet]

Transparency (No Hidden Fees, Honesty) is what's needed in the car business - but many still refuse to learn, they're causing their own demise, it's a business model built on lying to costumers

[koolgamers]

Hearing some boomer car dealer exec say that it’s “preposterous” that Amazon and any potential fully online car retailer would cut them out of the picture one day made me chuckle.

[chaseychaseum]

Junk fees like added paint protection, door edge guards, locking lug nuts, nitrogen in the tires, local area mark-up's and various other dealer-added addendum stickers, along with insane document processing fees, inspection fees, vehicle sales prep fees, points added to loan rates, gap insurance, extended warranties, interior and tire protection policies and whatever else the stealerships can come up with, are the reasons for dealership decline. This really came to a head following Cov19, resulting in new car supply becoming akin to unobtainium. $10k markup on sub $30k cars was the final nail in their coffin. People were left 125+% upsidedown on a car that they could never afford and couldn't afford to trade. Now, with skyrocketing interest rates, a total collapse is imminent.

If you work diligently for years to fleece your customers, you get what you deserve. Be proud that you have ruined your own reputation and industry. Most would rather attempt self dentistry than to go to a car lot and buy a car.

[patrickr]

“We don’t have all the technologies online yet to trick you into paying far more than you need to for a car, but as son as we do, we can definitely sell you cars online.”

[sagarchamlagai]

This is a good move towards a direct consumer point of sales.

[DennisPhoonjaya]

I've got to say, the idea of buying a car online through Amazon sounds way more appealing to me than the traditional dealership experience. The thought of being able to shop from the comfort of my own home, without having to put on a brave face at the dealership or worry about getting a bad deal, is just so much more relaxing. It's about time car buying caught up with the digital age!

[dystopia-usa]

I usually dread buying a new vehicle because I dread going into dealerships & dealing with shady, unethical, greedy people & all their tricks/traps - which never work on me, but ends up wasting most of the day with their crooked antics & misinformation. I either walk-out with the fair deal & vehicle I initially went in expecting, or no deal at all.

[ShadowRaptor]

Was shopping for an EV and a Ford dealership tried to justify a $5k markup on a Mach-E with the fact that the first three years of oil changes are covered. Can't imagine why they're sitting on lots ...

[leodaso]

Dealership lobby is kicking and screaming. They won't let this go. Liked mentioned in the video, this Amazon Hyundai partnership is just a lead maker. Everything still goes to the dealership. I'm sure they will still try to add on junk before the signing. Give us true direct to consumer sales already!

[OnlineCitizenTV]

What customers want is transparency and trust. The model might work for new cars but I’m not sure how reliable it would be for used vehicles

[faketruth]

Dealership markup is what fked them. Missed the old day when they offer discounts for you to buy, now you're lucky if you can walk out the door with the MSRP price, instead of the crazy markup price they set.

[llbpll]

AWS is Amazon Web Services, not Amazon World Services

[aaronstestlab]

A local dealership here in Seattle is advertising new Bolts for $4k under MSRP. Sounds great, right? But wait, click on the price disclosers and you really see they're marking up the vehicles $3500 and then showing your $7500 tax credit as a price reduction to get to their advertised price. Can't wait for the current car buying model to to extinct.

[sheepcreeksociety]

NADA should be embarrassed by the actions of it’s members. But the future will be brighter for consumers as the power and influence of dealers fades into the past. It’s just a complete shame how they’ve ripped off consumers for decades and the NADA is part of the problem.

[mistervo]

I want to buy DIRECTLY from the manufacturer!