You can buy just about anything on the internet. How about a car? Why not buy a Hyundai on Amazon? On November 16, the two companies announced a partnership that will allow customers to do just that. Not surprisingly, some car dealerships are a bit shook up, and the announcement reverberated through some auto seller stocks.
Hyundai just the first brand available
Starting next year, Amazon will sell cars in the U.S. on its mega-platform. Hyundai will be the first brand available for customers to buy. Both companies tout how easy it will be. You may shop digitally, but you won’t be waiting for the UPS guy to show up with the delivery. Rather, purchasers will either pick up their new car at a local dealership, or have the dealer deliver it to them directly.
It’ll be a little different experience than shopping for, say, holding tank chemicals. Customers will be able to search on Amazon for available vehicles in their area. They’ll be able to filter preferences, including model, trim, color, and features, and choose their preferred car. Made your choice? Check out online with your chosen payment and financing options.
Buy a Hyundai on Amazon? Oh, but there’s more
Buy a Hyundai on Amazon? That’s not the limit, the car maker says. Starting in 2025, those who buy Hyundai’s next-generation vehicles will feel more “at home.” Hyundai says they’ll be able to access the hands-free Alexa experience they have at home, while in their car. Drivers will be able to simply ask Alexa to play music, podcasts, or audiobooks, set reminders, update to-do lists, and check calendars. They’ll be able to control their smart home from the road. Ask to warm up the house on the way home. Double-check that doors are locked, and manage smart lighting and Alexa routines. Drivers will also be able to ask Alexa for up-to-date traffic information or weather reports and voice-control the in-vehicle media player or navigation system. The company says certain Alexa features will be accessible even when internet connectivity is intermittent or not available.
Amazon has a share in all that innovation. Amazon Web Services (AWS) is becoming Hyundai’s preferred cloud provider. That, it is said, will accelerate the car maker’s digital transformation. And, of course, with Hyundai using Amazon’s Alexa system, so much the better for Amazon.
News hits some car retailers hard
All this information fell hard on auto-dealing companies like Carvana, CarMax, and AutoNation. These outfits already use the internet as their customer sales focal point. Having Amazon as the new Big Gorilla in the marketplace didn’t play well with the stock market. Among the existing three, share values dropped as much as 8% when Amazon and Hunyadi made their big partnering announcement.
Amazon entering the car sales market will be hard on these existing internet-based car retailers. CarMax and Carvana, in some cases, physically hold the cars they sell, tying up plenty of money. Amazon simply acts as a middle-man.
Shock reactions to new product lines carried by Amazon are nothing new. In 2017 Amazon announced it would start fronting auto parts. While companies like NAPA and O’Reilly Auto Parts don’t appear to have shut down any store fronts, no doubt they’ve seen a share of their sales move to the big e-commerce giant.
Will we see motorhomes and fifth wheels on Amazon next?
##RVT1131b
WOW, talk about overreaching. Where are they headed to next?
It seems like many changes are coming faster and faster these last few years. There will be those that will say it won’t work. Based on the stories and comments we all read buying through a dealer isn’t necessarily working now. Getting repairs made through those same dealers can be a nightmare. I will be watching with great interest too see how it goes.
I can get groceries delivered on-line, restaurant food, clothing, go to church, on and on and you name it. Now I can order a car on-line. Why do I need a car?
Good point, Kelly! (And you can travel all over the world online.) Have a good night. 😀 –Diane
Don’t know about you, but I need a car to get to work! Not walking or biking 40 miles and back…
Oh, sorry Rich K, I should have stated that I am retired and really don’t go anywhere unless, being retired, I’m in my RV headed out.
Amazon cars may go on the back burner of dealerships for maintenance and repair as RV’s do when not purchased from the dealership. Good luck with an Amazon car.
Not the same for the auto industry. You’re certainly not limited to any dealership. Lemon laws still applies and they’re not “Amazon” cars.
It may be a problem at your local dealer, but I have had wonderful experiences with Ford dealerships while traveling. I know many will laugh at my comment but it’s true. Saving RV trips when trouble arose with our pickup. It’s the old “They dropped everything” story to get us back on the road. But, I won’t be buying any cars on line.
The smartest thing ever to connect one’s car to their home Amazon. Now hackers can take over the car and drive it.
Agree
Predictable comments below. Fear of change, fear of theft or just why do we need. Those who don’t embrace change will be left behind. And besides if we think this is remotely targeted to the aging demographic here, we’re sadly mistaken. I’d love to bypass dealers for cars and RVs!
Will they be including “fair market” surcharges, $900 paint protection package, wheel and tire protection, $400 vehicle enhancement…? Will they have a virtual sales manager at check out pushing extended warranty? No?
You still need to test drive a car before buying. Especially with these new cars. We have a Kia Sportage and it’s a nightmare being user friendly with the electronics. Hate the shifter. I don’t feel sorry for the Hyundai dealers. They screwed us during the pandemic and wouldn’t sell you a car unless you paid them $6000. over sticker. Hyundai let them get away with it and wouldn’t do nothing about it.
Tesla is doing it the best way. Direct to consumer and you can buy right on your phone. One price for all. And you can test drive at the stores with no pressure. Just great information from the people that work there. When you have terrible shopping experiences others will come and change it for the better (mattresses / cars)
Just remember that each of those Tesla stores is a State Licensed Motor Vehicle Dealer. Tesla wants you to think “Direct to Consumer” yet Tesla is no different than any other new car store in that you can order the vehicle online or at the dealer location and it’s delivered at the local Tesla dealer store. The ONLY difference is that Tesla does not make vehicles for stock in store walk in purchase without an order. Their local dealerships locations do not have local dealer inventory available at their local dealerships unlike every other OEM vehicle manufacturer.
Thank you, Russ and Tina! This is certainly interesting and bears watching. Thank you for drawing my attention to it!
Love this!!! The last thing I want to do is deal with a car salesman, who can’t make a decision without “talking to the manager” first, making a purchase a 6 hour affair!
Hyundai is a Korean co. How much of the car is made and assembled in the USA. Mexico make a large portion of our cars or components and yet they keep coming across the border. NAFTA didn’t do the American worker any favors
I think this could be a positive shift for purchasers. No more of those ridiculous Dealer Prep Prices. More cars will be custom built. And if you live out in a rural area away from dealerships, the number you are able to choose from will increase enormously.
As a person with legs that are 3 ft long I would never buy a car without driving it first and sitting in the passenger side as well. I’ve been in too many cars where I can’t comfortably sit for more than 30 minutes and some that I can’t hardly get into.
Are New Car and New RV Dealerships in trouble?
No Way!
Each and every state has Franchise Laws that dictate the relationship between the OEM vehicle and/or RV manufacturer and the local Franchised Dealer.
Rest assured that the Automobile Dealer Association and local RV Dealer Association in EVERY STATE has made sure the Franchise Laws in their state of residence greatly benefits the Local Franchised new vehicle and new RV dealers.
The state Franchise Laws in each of the 50 states virtually guaranty that OEM Franchised Automobile and RV dealerships are not going away at all any time in the near or distant future!
I will never buy a car I’ve never sat in or driven.
You will still have to pay prep fee and transportation fee.
“Rather, purchasers will either pick up their new car at a local dealership, or have the dealer deliver it to them directly.”
Seems there is not much RV news. So let’s talk about car purchases
Good morning, Mike. Are you saying RVers don’t own cars? Or, how about the last sentence of the post, which was included as food for thought: “Will we see motorhomes and fifth wheels on Amazon next?” Have a great Thanksgiving. 🙂 –Diane at RVtravel.com