Can You Really Buy a Car on Amazon?
About this episode
Exploring the launch of Amazon Auto, this episode dives into the partnership between Amazon and Hyundai, examining how the platform allows users to buy cars online. The discussion highlights the beta testing phase, the limitations of the service, and the implications of convenience versus traditional dealership experiences. Key insights include the fixed pricing model, the lack of home delivery, and the necessity of visiting dealerships to finalize purchases. The host shares personal anecdotes and critiques the overall value of Amazon Auto for consumers seeking the best deals.
Summary
Amazon Autos promises to make buying a car as easy as clicking “Buy Now.” But is it actually easier — and more importantly, is it better for car buyers?
In this episode, The Car Chick® breaks down how Amazon Autos really works, why Hyundai was the first automaker to partner with Amazon, how the platform has evolved into used and certified pre-owned vehicles, and where dealership bullshittery can still sneak in. We compare Amazon Autos to TrueCar, Autotrader, and Cars.com, explain who this model works for, and why convenience often comes at the cost of leverage.
Takeaways
- Amazon is testing a new car buying model.
- Hyundai's flexibility makes it a suitable partner for Amazon.
- The buying process is still dealer-centric despite the online platform.
- Fixed pricing reduces negotiation but may not guarantee the best deal.
- Convenience often comes at a cost in the car buying process.
Resources:
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Amazon Auto
"So that is the question that we are going to be answering today on The Straight Shift. Amazon Auto was announced in late 2023 as a strategic partnership between Amazon and Hyundai."
Amazon Auto is a new service where you can buy cars online through Amazon, similar to how you would buy other products on their website.
Amazon Auto is a service announced in late 2023 that allows customers to purchase vehicles through Amazon's platform, marking a significant move in the automotive retail space.
Hyundai
"Amazon Auto was announced in late 2023 as a strategic partnership between Amazon and Hyundai."
Hyundai is a car company from South Korea that makes many different types of vehicles. They are working with Amazon to sell cars online.
Hyundai is a South Korean automotive manufacturer known for producing a wide range of vehicles, from compact cars to SUVs. The partnership with Amazon signifies a new approach to car sales.
GM
"Why not GM or Toyota? They're both a lot bigger."
GM stands for General Motors, a big American car company that makes many popular brands like Chevrolet and Cadillac.
General Motors (GM) is an American multinational corporation that designs, manufactures, and sells vehicles and vehicle parts. It is one of the largest automotive companies in the world, known for brands like Chevrolet, GMC, Cadillac, and Buick.
Toyota
"Why not GM or Toyota? They're both a lot bigger."
Toyota is a well-known car company from Japan that makes reliable cars and is famous for its hybrid models like the Prius.
Toyota is a Japanese automotive manufacturer known for its reliable and fuel-efficient vehicles. It is one of the largest car manufacturers in the world and is recognized for pioneering hybrid technology with the Prius.
Toyota Sequoia
"...it took them 14 years to finally redesign the Sequoia. They don't like beta programs..."
The Toyota Sequoia is a big SUV that is known for being dependable. It doesn't get redesigned often, which is typical for Toyota's careful approach to making changes.
The Toyota Sequoia is a full-size SUV known for its reliability and spacious interior. It has been a part of Toyota's lineup since 2000, but its redesigns are infrequent, reflecting the company's conservative approach to changes.
fixed non-negotiable vehicle pricing
"...features fixed non-negotiable vehicle pricing that is displayed up front, kind of like CarMax does in the used car world."
Fixed non-negotiable vehicle pricing means the price you see is the price you pay, with no room for haggling. It makes buying a car simpler because you don't have to negotiate the price.
Fixed non-negotiable vehicle pricing means that the price of the vehicle is set and cannot be changed through negotiation. This approach aims to simplify the buying process and provide transparency to customers.
certified pre-owned vehicles
"...expanded into some used and certified pre-owned vehicles, not just new cars..."
Certified pre-owned vehicles are used cars that have been checked and approved by the car manufacturer or dealer. They usually come with a warranty and are in good shape, making them a safer choice for buyers.
Certified pre-owned vehicles are used cars that have been inspected, refurbished, and certified by the manufacturer or a dealer. They often come with a warranty and are typically in better condition than non-certified used cars.
Ford
"You can see Ford certified pre-owned cars. You can see other used cars for sale on Ford dealers lots that are participating in the program"
Ford is a popular car company in the United States that makes many different types of vehicles, like trucks and cars.
Ford is a well-known American automotive manufacturer that produces a wide range of vehicles, including cars, trucks, and SUVs.
used car fleets
"And they also got Hertz on board for selling their used cars. They sell their own used car fleets and have been doing that for years, as opposed to just hauling them all to auction."
Used car fleets are cars that were rented out before and are now being sold. They might not be in perfect condition because many people have driven them.
Used car fleets refer to groups of vehicles that were previously part of a rental or leasing service and are now being sold to consumers. These cars often have higher mileage and may show signs of wear and tear due to their previous use.
return policy
"There is a three day or 100 mile return policy on used vehicles. So that allows you to get it home and take it to your mechanic and get it inspected."
A return policy means you can bring the car back if you don't like it within a certain number of days or miles. This helps you make sure the car is right for you.
A return policy for used vehicles allows buyers to return a car within a specified time frame or mileage limit if they are not satisfied. This policy helps to build consumer confidence by allowing a period for inspection and evaluation of the vehicle.
limited warranty
"And there's also a 30 day or 1000 mile limited warranty on the used vehicles. This is something that a lot of dealerships do anyway."
A limited warranty means the seller will fix certain parts of the car for free if they break within a specific time or distance. However, it doesn't cover everything that could go wrong.
A limited warranty is a guarantee provided by the seller that covers specific parts or repairs for a certain period or mileage. In this case, it covers major components of the vehicle, like the engine and transmission, but not everything that might fail.
Honda
"...you're not going to find it on Amazon unless it's a used one that happens to be in the inventory of one of the participating dealers..."
Honda is another car company from Japan that makes reliable cars like the Civic and Accord. They are known for their good fuel economy and long-lasting vehicles.
Honda is a Japanese automotive manufacturer known for producing reliable and fuel-efficient vehicles. Popular models include the Civic and Accord, which are well-regarded for their performance and longevity.
leasing
"...But at least you can, in a lot of markets, lease a new Hyundai online."
Leasing is like renting a car for a few years. You pay to use it but don't own it. After the lease ends, you can either give the car back or buy it if you want.
Leasing is a method of acquiring a vehicle where the customer pays to use the car for a specified period, typically 2-4 years, without owning it. At the end of the lease term, the customer can return the vehicle or purchase it at a predetermined price.
extended warranty
"...you can also purchase additional products like the extended warranty or prepaid maintenance..."
An extended warranty is like extra insurance for your car that covers repairs after the regular warranty runs out. It helps you avoid big repair bills later on.
An extended warranty is a service contract that provides additional coverage for vehicle repairs after the manufacturer's warranty expires. It can help cover unexpected repair costs.
prepaid maintenance
"...you can also purchase additional products like the extended warranty or prepaid maintenance..."
Prepaid maintenance means you pay in advance for regular car services, like oil changes and tire rotations. It helps you keep your car in good shape without worrying about paying each time.
Prepaid maintenance is a service plan where you pay upfront for scheduled maintenance services for your vehicle. This can help you manage costs and ensure your car is properly maintained.
Teslas Model
"You are buying the car from the dealer. This is not like Tesla's model and Rivian and some of the ones that are pushing that franchise law boundary"
The Tesla Model Y is a type of electric car that looks like a small SUV. It's known for being very efficient and having lots of cool tech features. People might talk about it because buying it from a traditional dealer is different from how Tesla usually sells its cars directly to customers.
The Tesla Model Y is an all-electric compact SUV that shares many components with the Model 3 sedan. It is significant for its impressive range, advanced technology, and performance, making it a popular choice among electric vehicle enthusiasts. The discussion may focus on its dealership purchasing process, which differs from Tesla's direct sales model.
no-haggle model
"So it is a no-haggle model. So you're not requesting quotes."
In a no-haggle model, the price you see is the price you pay. You won't have to negotiate or try to get a better deal; it's straightforward and simple.
A no-haggle model refers to a car buying process where the price is fixed and non-negotiable, meaning customers pay the listed price without the typical back-and-forth negotiations with dealers. This model aims to simplify the purchasing experience and reduce stress for buyers.
captive finance company
"if you want to finance through the captive finance company,"
A captive finance company is a bank or financial service that belongs to a car brand. They help customers get loans or leases to buy cars from that brand, often making it easier to finance a purchase.
A captive finance company is a financial institution that is owned by a car manufacturer and provides financing options specifically for customers purchasing their vehicles. This can include loans and leases tailored to the manufacturer's vehicles, often with competitive rates.
Out-the-door price
"...not necessarily the full out the door price. Because the car, if you've listened to me, is just one of about eight areas in any deal..."
Out-the-door price is how much you'll actually pay for a car after adding everything together, like taxes and fees. It's the final amount you need to pay to drive the car home.
The out-the-door price (OTD) is the total cost of purchasing a vehicle, including the vehicle price, taxes, registration fees, and any dealer fees. It's important to understand this figure to avoid unexpected costs when finalizing a car purchase.
protection package
"...to sign the paperwork and then finding out there's this $3,000 protection package with the cheap ceramic coating..."
A protection package is something extra that car dealers might try to sell you when you buy a car. It usually includes things like special coatings to protect the paint or extra services for your tires. It can make the car more expensive than you expected.
A protection package is an additional cost added by dealerships that often includes various services or products aimed at protecting the vehicle, such as ceramic coatings, tire protection, or extended warranties. These packages can significantly increase the overall price of the vehicle purchase.
ceramic coating
"...with the cheap ceramic coating and the nitrogen and the tires and the wheel locks..."
Ceramic coating is a special liquid that is put on a car's paint to protect it. It helps keep the car shiny and makes it easier to clean because dirt and water slide off more easily.
Ceramic coating is a liquid polymer applied to the exterior of a vehicle, providing a protective layer that enhances the paint's durability and shine. It helps repel water, dirt, and other contaminants, making the car easier to clean and maintain.
wheel locks
"...the nitrogen and the tires and the wheel locks. And whatever dealer added on crap..."
Wheel locks are special locks that keep your car's wheels from being stolen. They need a unique key to take them off, so they make it harder for thieves to take your tires.
Wheel locks are security devices designed to prevent the theft of wheels and tires from a vehicle. They typically require a special key to remove the lock, making it more difficult for thieves to steal the wheels.
taxes
"And then of course you still got your taxes, your registration, dealer fees."
Taxes are extra costs you pay when buying a car, usually a percentage of the car's price. It's money that goes to the government and can change depending on where you live.
Taxes on a vehicle purchase can include sales tax, which is a percentage of the car's price that buyers must pay to the government. This tax is typically added to the purchase price and can vary by location.
registration
"your registration, dealer fees. So it doesn't lock in necessarily the out the door price."
Registration is when you sign up your car with the government so you can legally drive it. You usually have to pay a fee and get a license plate for your car.
Registration is the process of officially recording a vehicle with the government, which allows it to be legally driven on public roads. It usually involves paying a fee and obtaining a license plate.
dealer fees
"your registration, dealer fees. So it doesn't lock in necessarily the out the door price."
Dealer fees are extra charges that car dealers might add when you buy a car. They cover things like paperwork and preparing the car for sale, and they can make the car cost more than you expect.
Dealer fees are additional charges that car dealerships may add to the purchase price of a vehicle. These fees can include documentation fees, preparation fees, and other costs associated with the sale that are not included in the vehicle's price.
NADA
"...usually backed by NADA. There's a couple different backend vendors for it."
NADA is an organization that helps car dealers understand how much cars are worth and what the market looks like.
NADA stands for the National Automobile Dealers Association, which provides resources and data for car dealers, including vehicle valuations and market trends.
trade-in value
"...to give you a nice low ball offer for your trade contingent on the dealer actually seeing it in person..."
Trade-in value is how much money a car dealer will give you for your old car when you buy a new one from them.
Trade-in value is the amount a dealer offers you for your old vehicle when you purchase a new one. It's often lower than private sale prices because dealers need to resell the vehicle at a profit.
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