Looking for a car? You’ll soon be able to buy a Hyundai on Amazon – and only a Hyundai

This is the year you can finally buy a car on Amazon. Well, one kind. Finally.

On November 16, 2023, at the Los Angeles Auto Show, Amazon and Hyundai made a big announcement:Getting Started sometime in 2024a recent pilot program would allow customers to not only browse Hyundai cars on Amazon.com, but also pay for them.

How professor of marketingI’ve been following this story closely. “Customers will be able to buy recent vehicles directly on Amazon,” an executive from the online retail giant said during the announcement, drawing cheers from the audience.

But that may be a bit too simplistic, I think. The real story is more elaborate—and more fascinating.

Visit to the digital showroom

The average person still can’t buy a car on Amazon—I know because I tried. Amazon and Hyundai haven’t publicly announced a start date for the pilot and haven’t responded to my inquiries.

In the meantime, you can still try to purchase a recent hybrid car from the online store.

Since 2018 Hyundai launches “electronic showroom” on Amazon, where customers can browse cars — and almost, but not quite, buy them.

Now, if you open Amazon.com and search for “Hyundai,” you’ll see the Hyundai website on Amazon.com as the first search result. You can click on that website, enter your zip code, and see recent Hyundais for sale at participating dealers nearby.

The current system allows you to choose the model, finish and color, choose between financing or leasing, and estimate your monthly payment.

But as of that date — January 26, 2024 — you can’t actually make a purchase with the car in your cart. Instead, once you’ve selected the car you want, Amazon will direct you to a local dealership so you can choose financing/leasing and pay for the car at the showroom.

What’s more, Amazon says that the pricing details on the site are illustrative and that “final pricing details are determined at the Hyundai showroom.” In other words, Amazon provides car shoppers with information but doesn’t allow them to actually buy a car.

As I explain below, adding a check-out option would be a massive deal. And that’s exactly what Amazon has said it intends to do.

But wait: why can’t I buy a car on Amazon anymore? I can buy everything else, right?

In the United States, the states generally require Customary carmakers can sell their cars through franchised dealers. Some states have allowed electric vehicle manufacturers, such as Tesla, to sell directly to consumers.

To comply with franchise dealership regulations, Amazon can’t list vehicles for sale the way it lists, say, books or socks. Instead, it must partner with dealers.

Amazon’s plan is to expand Hyundai’s digital showroom by 18 Hyundai dealers in five statesThis will allow local buyers to not only view current inventory, but also pay for a recent vehicle.

This means that when a buyer pays for a vehicle and chooses to finance or lease it on Amazon, the seller will be the local dealer and Amazon will act as sales channel.

Amazon has been incredibly sharp in following franchise regulations while also providing information about what dealers have to offer and providing customers with a convenient way to purchase recent vehicles.

And while this pilot will start with Hyundai, it likely won’t end there. Amazon has said that at some point — it didn’t say when — it plans to expand the program to other car brands.

How 2024 Will Change the Way We Buy Cars – A Little Bit

So if reports are to be believed, at some point in 2024, Amazon will allow customers to rent a Hyundai the same way they rent a bottle of shampoo.

That could make a lot of people ecstatic. It would tap into a growing segment of shoppers who trust Amazon, prefer to fill out paperwork online and don’t want to haggle with a dealer. It could also drive more shoppers to participating dealers, increasing their sales.

However, I am skeptical whether this “great” opportunity will make any difference, at least initially.

Amazon will initially only sell recent Hyundais. Shoppers looking to compare a Hyundai to a competitor will be out of luck. Amazon also won’t sell used vehicles or allow trade-ins. That means a lot of consumer demand will go unmet.

Car sellers may also be hesitant to partner with Amazon. For one thing, they would lose the chance to build relationships with buyers—and the opportunity to sell them additional products.

Either way, you may soon be adding beauty products, kitchenware, and a recent Hyundai to your Amazon cart.