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Amazon will allow auto dealers to sell cars on its site, starting with Hyundai

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Amazonsaid Thursday.

The company has slowly muscled its way into the car-buying business over the years, launching digital showrooms on its site for shoppers to research and compare vehicles, but not purchase them directly through Amazon. Consumers can also buy car products, such as replacement parts, through its site.

Beginning in 2024, Amazon will let shoppers purchase a new car online, then pick it up or have it delivered by their local dealership. Consumers will be able to search for available vehicles in their area, make a selection, then check out on Amazon using their preferred payment and financing method. The company said the new feature will “create another way for dealers to build awareness of their selection and offer convenience to their customers.”

Amazon CEO Andy Jassy said the partnership with Hyundai will change “the ease with which customers can buy vehicles online.” As part of the deal, Hyundai will also include Amazon’s Alexa voice assistant in its cars starting in 2025.

Shares of used car dealers such as CarmaxCarvanaLithia MotorsAutoNation

With the move, shoppers will be able to buy cars on Amazon, but the dealer is still the end seller. Traditional automakers such as Hyundai have complex relationships with dealers that are backed, in many states, by laws that make it difficult or illegal to bypass franchised dealers and sell new vehicles directly to consumers.

TeslaRivian

There are less stringent laws regarding used vehicle sales, which makes it easier for companies such as Carvana and others to sell preowned cars and trucks online directly to consumers.

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