We’re quickly approaching the end of the year. Even though it’s still September, the far-too-early Thanksgiving decorations I’m seeing at Home Depot remind me that we’re hurtling toward 2025 faster than I thought. And that means that Hyundai and Amazon don’t have much longer to make good on their promise to launch a digital car-buying platform this year. And the delays are frustrating dealerships.
Last year, Hyundai and Amazon revealed a partnership that was said to create a digital marketplace where customers could choose their car, apply for financing, and ultimately make the deal they wanted without the hassle of doing it in person at a car dealership. While the customer would ultimately have to visit a dealer in person to finalize paperwork and take delivery of a car, most of the annoying part would be done at home. However, It seems that neither Hyundai nor Amazon truly understood the complexity of the United States’ car buying process, dealership networks, and state franchise laws. So despite early promises, it seems that Hyundai and Amazon still haven’t left the beta phase.
“Amazon announced this about a year ago and they’re still not out of pilot,” said Mike Stanton, CEO of the National Automobile Dealers Association (NADA), according to Automotive News.
“What I am hearing right now is that the dealers are frustrated,” Stanton said. “They’re not there yet with the agreement. It appears to be another digital retailing tool at the moment and probably not top tier.”
If you go to Amazon’s “Hyundai Evolve” hub, there’s really nothing more than what’s already on Hyundai’s main site. You can look at the vehicles Hyundai currently sells, but not specific vehicles on dealer lots. You can learn about Hyundai’s maintenance programs, warranties, and even electric vehicle charging. But you could do the same by just Googling “Hyundai” and clicking the first link. The section labeled “Purchase Hyundai Vehicles on Amazon” only gives you a popup that tells you about the program that’s coming later this year.
In Hyundai’s and Amazon’s defense, 2024 isn’t over yet, so there’s still time for this program to launch. And, if it can truly eliminate much of the car-buying hassle that most customers hate, then it’ll be worth the wait. But dealers are worried that the program is half-baked. “They still haven’t set up a situation where the dealer can deal with multiple banks or work on trades, so I think more will come,” Stanton said.
Dealers can also likely lose out on things like accessory sales. If a customer buys a Hyundai using the Amazon hub, they’re buying from a company that already has their purchase data. So Amazon can market to customers the sorts of Hyundai accessories that the algorithm says they’ll want. So customers will likely buy floor mats, cargo nets, or any other add-ons from Amazon—not the dealer. How happy do you think salespeople will be about that?
I have a hard time feeling bad for dealerships, though. If Hyundai can offer customers an easier car-buying experience that works well, why shouldn’t it? However, it seems that this is far trickier to navigate than Hyundai initially thought and that, even a year later, it seems the two companies have much more work to do.
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