Imagine a world where you can buy a car from the comfort of your home, with just a few clicks on your laptop or smartphone. That’s the vision that Amazon has for the future of car shopping, and it’s closer than you think.
Amazon has announced that it will soon launch a new service that will allow customers to browse, compare, and purchase cars online, from a wide range of brands and models. You will be able to see detailed specifications, reviews, photos, and videos of each car, as well as customize your options and features.
The e-commerce giant will launch vehicle sales in the U.S. next year and allow local car dealers to sell directly to customers on its site.
In a joint announcement with car manufacturer Hyundai on Thursday, the two companies said Amazon will begin by offering Hyundai vehicles. In turn, Hyundai will name Amazon’s cloud computing unit AWS as its preferred cloud provider and integrate its next-generation vehicles with Alexa, Amazon’s popular voice assistant.
The idea, according to Amazon, is to have customers purchase a new car online and pick it up – or have it delivered – from their local dealer.
The mega retailer will provide other vehicle services as well: apply for financing, trade-in your old car, and schedule delivery or pickup at a convenient location. Amazon hopes to make buying a car online faster, easier, and more transparent than going to a dealership, and that it claims that t will offer competitive prices and excellent customer service.
For now, it’s not clear how many dealers would be participating in the program or if customers across the U.S. would be able to make purchases. An Amazon spokesperson said the company would release more details as it builds the program, which is expected to begin with Hyundai franchised dealers and launch during the later part of next year.
Currently, Amazon sells vehicle equipment online and offers a showroom for consumers who want to research different types of cars they may want to buy. But consumers cannot directly purchase a vehicle on its platform.
The announcement on Thursday, though, shows that Amazon has ambitions to grow its reach through dealers, but the road will not be a smooth one, first because the industry has a strong lobby and second because Amazon will have to overcome heavy state regulations. Nearly all states require manufacturers to sell their vehicles through dealerships to ensure the automakers don’t undercut their own network of franchised dealers.
In addition to these challenges there could be resistance on the part of consumers who may be reluctant to make such a large and costly purchase sight unseen.
In a statement, an Amazon spokesperson expressed optimism, saying that customers are increasingly purchasing vehicles online and the company will provide a “range of solutions that add transparency” to the car buying process to help them make an informed decision.
Amazon is not the first company to try to sell cars online, but it is the first one to have such a massive reach and reputation. With millions of loyal customers and Prime members, Amazon hopes to revolutionize the car industry and make online car shopping the new norm.
