Amazon’s used car experiment: Can they really eliminate negotiation?
Image credit: CNBC
The Amazon Autos website currently promises “Transparent pricing, always.” And “no negotiating necessary.” The platform launched last December with Hyundai's new car virtual showroom and buying process. It expanded a few weeks ago to include used & CPO cars from other automakers, at LA-area Hyundai dealerships.
Image credit: Amazon.com
I tested these claims at three Hyundai dealerships in LA, this past weekend.
And the experience didn’t fully match the promises:
➡️ Some dealers aren’t participating.
One salesperson told me his store opted out entirely, fearing Amazon would eventually squeeze their margins.
➡️ No Amazon branding.
At participating locations, I found zero Amazon branding—not on window stickers, signage, or anywhere else. Amazon Autos listed vehicles were mixed in with everything else on the lot, shopped by consumers presumably ready to negotiate.
➡️ Hidden markups.
For the two specific cars I was looking at (a BMW and an Audi), the lot sticker price matched the Amazon Autos listing. But both also carried “Dealer added options” markups not visible on Amazon’s website.
➡️ Sales staff still negotiating.
Salespeople told me they could “remove” dealer-added options. When pressed, they admitted they might even negotiate on the listed Amazon price.
While this is based on a small sample of three LA-area dealerships, it raises important questions: How are customers going to rate Amazon Autos if their experience varies so widely?
Many may end up disappointed. Some will discover hidden markups and fall back into traditional negotiation scenarios. Others will trust the Amazon price only to learn later that it was negotiable.
🎯 Bottom line: Even brands as powerful as Amazon risk losing trust if they promise customer experiences they can’t fully control.
What do you think automakers should do to make the car-buying process easier?
#Amazon #Automotive #UsedCars #BrandStrategy #CustomerExperience
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