Amazon vs Car Dealerships: Should You Buy Your Next Car from Jeff Bezos?

Amazon has revolutionized online retail - by accident or on purpose - but, should you be buying the second most expensive thing you may own online?

Buying a car from Amazon

Buying a car from Amazon

The automobile sales industry is undergoing a significant transformation, with a market value of $1.2 trillion USD in America alone, as reported by the National Automobile Dealers Association. Traditional car dealerships are being challenged by innovative sales models, with companies like Tesla and Carvana leading the charge by selling cars directly through their websites and non-traditional outlets.

The latest entrant into this evolving market is none other than Amazon, the colossus of online retail, is now venturing into selling cars on its platform. This shift prompts a crucial question: Will consumers prefer purchasing their new or used cars through Amazon?

Pros of Buying Cars from Amazon

Amazon Car purchase
Will two day car delivery be a thing when Amazon gets a hold of online car shopping?

Imagine this scene – you (window) car shopping at 11 pm on a lazy Friday night while in your pajamas, no car salesman following you around – heaven. This is what you’ll get when Amazon starts selling cars fully online in 2024. What are some of the benefits of online car buying?

1. Unmatched Convenience

Buying a car from Amazon’s website means you can shop from the comfort of your home, any time of the day. There’s no need to visit multiple dealerships or spend weekends negotiating with salespeople. This ease of access and the ability to browse through an extensive selection at your own pace is a game-changer for many.

2. Transparent Pricing

Amazon’s platform could potentially offer more transparent pricing than traditional dealerships. With detailed listings and the ability to compare prices across different sellers, buyers are better positioned to find deals that fit their budget without hidden fees.

3. User Reviews and Ratings

Amazon’s robust review system allows prospective buyers to read about the experiences of others. This feature can be particularly useful when considering the purchase of a used car, providing insights into reliability and satisfaction levels from a broad user base.

4. Simplified Financing and Insurance Options

Amazon might streamline the process of securing financing and insurance, offering integrated solutions right at the point of sale. This can significantly reduce the complexity and time involved in car buying, potentially offering direct links to beneficial financial incentives for electric vehicles.

Cons of Buying Cars from Amazon

Hyundai, Tesla and now Amazon are offering to sell you your next car online – should you take up the offer?

Forget the instant gratification you get from adding or taking items from your Amazon shopping cart, there will be some negatives too. Let’s explore some unanticipated hiccups from car shopping online.

1. Lack of Test Driving

A significant drawback of purchasing a car online is the inability to test drive before making a commitment. While descriptions and reviews are helpful, they cannot replace the firsthand experience of how a car feels and drives.

2. Personal Interaction and Negotiation

Some buyers appreciate the personal interaction and the opportunity to negotiate a deal, aspects that are missing in an online transaction. The human element of car buying, including building a rapport with the salesperson and seeing the car in person, is lost.

3. Post-Purchase Services

After-sales services, such as maintenance and repairs, are an integral part of car ownership. When buying from Amazon, it may be unclear how these services are handled, especially since Amazon is not a traditional car dealership with service departments.

4. Potential for Overwhelming Choices

While having a wide selection is generally positive, it can also be overwhelming. The sheer volume of options on Amazon’s platform might make it challenging for some buyers to decide, leading to decision fatigue.

Conclusion

The move by Amazon into car sales is indicative of the broader shift towards online retail in the automobile industry, a trend spearheaded by companies like Tesla and Carvana. While the convenience and transparency offered by Amazon’s platform are compelling advantages, the lack of test driving and personal interaction are significant drawbacks that potential buyers must consider. Ultimately, whether buying a car from Amazon is the right choice depends on individual preferences and priorities. As the automotive sales landscape continues to evolve, consumers are afforded more options and flexibility than ever before, challenging traditional dealership models and paving the way for a new era of car buying.

For those interested in exploring further, detailed insights into the evolution of car sales and online purchasing platforms can be found at sources like SUV.me, offering a comprehensive overview of the best online sites to purchase new or used SUVs in America.