November 22, 2023.

The 2024 Hyundai Santa Fe will be the first vehicle available to purchase on Amazon.com, according to the new joint agreement the companies announced at the 2023 Los Angeles Auto Show.

Consumers can expect to shop for new cars as they shop for other products on Amazon, a first for the automotive industry.

The full Hyundai lineup will also be available soon on the online retail giant’s platform. Amazon also hopes to offer other manufacturers’ vehicles, although target dates weren’t announced.

Shopping Convenience

Going to a car dealership to buy a new car can take several hours. It’s not unusual to spend an entire day buying a car. Many consumers are also uncomfortable with the car-buying process and would prefer an online transaction.

Shopping Experience

Consumers familiar with car configurators on automakers’ websites will be familiar with selecting from a range of preferences that include model, trim, color and various features.

What Amazon will offer is the back end of the transaction; selecting your preferred method of payment, choosing from a variety of financing options, adding the car to your cart and clicking to buy.

Dealer Cooperation

The Amazon platform will make it convenient to purchase a new car online and then pick it up or have it delivered by a local dealership. It’s not an attempt to do an end run around car dealerships.

The platform will work with local dealers and allow car shoppers to view available inventory. Amazon touts the new venture as “…another way for dealers to build awareness of their selection and offer convenience to their customers.”

Vehicle Pricing

New car shoppers love convenience but are driven by price. The success or failure of Amazon’s new car-buying platform will hinge upon pricing. The art of negotiation is not something that will go away because consumers can click to buy. Amazon will need to offer the best deals before negotiation-savvy buyers will adapt.

The Verdict

It was just a matter of time before new car buying went online. It’s not a new idea and not the first time a company has attempted to make the process of buying a new car as easy as point and click.

What’s novel about this attempt are the players. Amazon is a retail juggernaut. If any company can make it possible to buy a new car from your smartphone, Amazon can. The only question is if Prime members will get free delivery.