Amazon partners with dealers to sell used, CPO cars online

Amazon is expanding its online car marketplace beyond new Hyundai models to include used and certified pre-owned (CPO) vehicles from participating local dealerships. This new offering, starting in Los Angeles and planned to roll out to more U.S. cities, allows consumers to browse, finance, and pay for used and CPO cars entirely online. Buyers interact with dealers only after completing the purchase, streamlining the car-buying process. Unlike peer-to-peer platforms like Craigslist or Facebook Marketplace, this service features inventory exclusively from dealers.

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Here’s why it matters:

This move presents a significant new digital sales channel for dealerships, enabling them to reach a broader online audience and potentially boost used and CPO vehicle sales. It also changes how dealers interact with customers, shifting much of the purchasing process online and potentially increasing operational efficiency. However, it also introduces new competitive dynamics as Amazon’s platform simplifies the buying process and may pressure dealers to enhance their online presence and customer service.

Key takeaways:

• Expansion to used and CPO vehicles
  Amazon Autos is broadening its inventory from exclusively new Hyundai models to include used and certified pre-owned cars from local dealers, starting in Los Angeles.
• Streamlined online buying
  Buyers can complete payment and financing online, reducing the need for in-person dealership visits until after the purchase is finalized.
• Dealer-only listings
  Unlike peer-to-peer platforms, Amazon’s marketplace lists vehicles only from participating dealerships, ensuring professional sales but limiting private seller involvement.
• Potential sales growth channel
  The platform offers dealers access to a vast online customer base, which may increase used and CPO vehicle sales and help dealers adapt to digital retail trends.
• Changing dealer-customer interaction
  The shift to online transactions may require dealers to adapt their sales and customer engagement models to remain competitive in an evolving digital landscape.