The Beginning of the End of the Dealership Model? Hyundai to Start Selling Cars Through Amazon

Announced at the LA Auto Show last week, Hyundai will be the first automaker to sell their cars on Amazon starting next year.

Is this the end of the dealership model? Unfortunately, not yet. Financing, insurance and accessories will all be completed on Amazon, but your new Hyundai will actually be purchased and delivered from your local Hyundai dealership.

And unlike true direct-to-consumer brands like Tesla, Rivian or Polestar, technically you won’t be able to build a new Hyundai to your specifications on Amazon. You’ll only be choosing from what your local Hyundai dealership has in stock.

Personally I’d like to find more info as to what stipulations these participating dealerships have to follow in order to be sold through Amazon. Mainly because one major gripe legacy manufacturers have had over the last few years is the fact that dealership fatigue is a real thing.

Consumers are loving the direct-to-consumer model more and more with its easy and streamlined way of purchasing a new vehicle. Not having to deal with salespeople or the fact that most dealerships slap on “market adjustments” to the tune of thousands or even tens of thousands of dollars onto popular models has consumers trying to avoid dealerships at all costs.

Did these initial 15-20 Hyundai dealerships agree not to get greedy with “market adjustments”? Is the pricing on Amazon left up to the local dealership or to Hyundai? I’m sure consumers would like to know.

If Hyundai can actually get their dealerships to agree to sell their vehicles at sticker price on Amazon, and it turns out to be successful, that would be huge. Then what’s next? Would Hyundai be able to set up an actual online store, where after building your Hyundai a “Buy now” button shows up instead of the “Request a quote” button it shows now? Then your new Hyundai is delivered from a local dealership?

That would be an interesting way for Hyundai to sidestep the dying dealership only model and give their customers the direct-to-consumer convenience they crave.