The e-commerce giant's new car purchasing service now includes brands such as Jeep and Chevrolet. A person holds a smartphone displaying the product page for a 2026 Hyundai Santa Fe Hybrid SUV on Amazon's automotive channel. Amazon's vehicle sales business has expanded to over 130 cities.
Amazon has extended its vehicle sales service, "Amazon Vehicles," to include brands like Kia, Mazda, Subaru, Chevrolet, and Jeep. Consumers can now purchase a new Chevrolet Corvette directly through Amazon's website. Over the past year and a half, the e-commerce leader has quietly grown its automotive sales operations. The program initially launched as a pilot in partnership solely with Hyundai, but has recently added models from Kia, Mazda, Subaru, Chevrolet, and Jeep. Amazon states that this service, named Amazon Autos, is now available in more than 130 cities, including Los Angeles, Dallas, and New York.
By scaling this initiative, Amazon is formally entering one of the largest retail sectors in the United States, which also remains one of the least digitized major consumer spending categories: new car sales. Data from the National Automobile Dealers Association indicates that dealership vehicle sales in the U.S. reached approximately $1.3 trillion last year.
The Amazon Autos program launched in late 2024, allowing consumers to browse and purchase vehicles from nearby partner dealerships. Its primary goal is to enable users to complete most of the purchasing and financing process from home, thereby reducing time spent at physical dealerships. Dealers pay a fee to list their inventory on Amazon, but consumers incur no additional charges for buying a car.
In recent years, Amazon has ventured into healthcare, groceries, and large-scale retail; automotive sales represent another traditional industry it aims to transform. However, Amazon clarifies that while it may alter the conventional car-buying process, it does not intend to bypass dealerships. For dealers, the advantage lies in reaching potential customers who are browsing vehicles on their smartphones from the comfort of their homes.
"I think it's a very innovative product," said Matthew Phillips, owner of a Kia dealership in Glendale, California, whose store recently began selling new cars on Amazon. So far, Phillips's dealership has sold only one vehicle through Amazon in the past month and a half—a Kia Carnival MPV priced at $55,000. Nevertheless, he remains optimistic about future growth: "Consumers trust Amazon, but it's definitely still in the early stages."
Amazon reports that it has signed up hundreds of dealerships. Jin Fan, Director of Amazon's Automotive business, stated, "Although still in its infancy, we are receiving positive feedback from both consumers and dealers, and we plan to continue expanding vehicle availability across the United States."
Amazon's potential gains extend far beyond simply capturing a share of the automotive sales market. Automotive manufacturers are among the world's largest advertisers. According to eMarketer, automakers' marketing expenditures are projected to exceed $30 billion this year alone.
Sky Kanavis, a Retail and E-commerce Analyst at eMarketer, noted that advertising is one of Amazon's fastest-growing and most profitable segments. "Amazon is aggressively pursuing brands that typically do not advertise on its platform." Through its automotive business, Amazon can attract more advertising budgets from automakers and dealerships.
First, Amazon must demonstrate that consumers are willing to purchase a car on the same platform where they buy toothpaste. While platforms like Carvana have popularized online used car sales, the way Americans buy new cars has not significantly changed. New vehicle purchases involve complex financial transactions, are subject to stringent state and federal regulations, and typically must be finalized at a physical dealership with extensive paperwork.
Dealers point out that while the current car-buying process is cumbersome, most steps still require an in-person presence due to practical necessities. The process involves lenders, manufacturer discount programs, credit checks, and other complexities that are difficult to replicate entirely online. Furthermore, consumers often want to see a vehicle in person before spending an average of $50,000. Consequently, many dealers are skeptical that Amazon or any other platform can shift the majority of new car sales online.
South Bay Hyundai in Torrance, California, an early participant in the Amazon program, has encountered some challenges, according to Alex Ruiz, the General Sales Manager. "In the early days of Amazon Autos, it was a few clicks, and the buyer would come in, sign four documents, and drive away," Ruiz said. But as user volume grew, "we started running into all sorts of issues." He mentioned instances where customers arrived with incomplete or incorrect paperwork, others wanting to trade in a vehicle registered under a spouse's name, and situations where a car reserved by an Amazon customer had already been sold to someone who visited the dealership. (Amazon stated it provides "guided support" for some online vehicle purchases.) This dealership initially sold about 10 cars per month through Amazon but now averages around 5. "I think it will catch on, but it needs time," Ruiz added.
Dealers and even automakers have previously experimented with various online sales methods, especially during the pandemic when many physical locations were closed. However, most attempts have had limited appeal to consumers. The vast majority of new cars and trucks are still purchased by consumers visiting independent franchised dealerships. The exception is electric vehicle makers like Tesla, Rivian, and Lucid, which use a direct online sales model supplemented by physical showrooms—a model that has faced legal challenges from traditional dealers in multiple states.
A rearview mirror displays a hangtag with the message "This vehicle sold with a smile" alongside the Amazon logo. Some dealers use such tags to identify vehicles sold through Amazon.
Despite this, there are indications that many people would prefer to avoid the hassle of visiting a dealership if given the choice. The complex and time-consuming car-buying process has even spawned a small industry of consultants who assist with vehicle purchases. Streamlining this process through Amazon could help address this pain point. "One automotive survey showed that consumers would rather get a root canal than negotiate a car purchase at a dealership," said Jesse Toprak, a former auto industry analyst who now operates the online automotive platform OptiCar.AI.
Additionally, dealership websites often provide a poor user experience, and inventory information is not always accurate. Toprak, who has participated in numerous projects over the past decade as a consultant or analyst, has witnessed multiple unsuccessful attempts by dealers to sell cars online. "You would place an order on a website, pay a deposit, and they promised you'd be in and out in 30 minutes, but the model simply wasn't scalable at the time."
However, Toprak believes that Americans' familiarity with online shopping will naturally extend to vehicle purchases, especially as millennials start families. "Suburban parents buying a Kia are digital natives themselves," he said. "This has become the new baseline expectation."
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