Opinions on Amazon digital sales launch with Hyundai

[Greg Spencer]

Hi,

Autos journalist here!

So Amazon has 'officially' launched its online sales program with a limited number of Hyundai dealerships across the U.S. Late last year, it was 18 dealerships and open to a limited consumer base, Amazon employees; now it's with dealers in 48 cities and open to the public. We're not seeing any Amazon showrooms; all cars are picked up at the dealership. (Amazon's announcement doesn't mention home delivery.) The program has evolved to include trade-ins -- arranged at the dealer when the customer picks up.

A survey of Hyundai dealers during the summer found lots of interest in the program but also skepticism. Dealers wondered whether digital sales through Amazon would strip them of opportunities for upsells and customer engagement.

Are there any Hyundai dealers on here? Or other dealers with insights/opinions? (Amazon says its expanding to other branded dealerships next year.)

Thanks,
Greg

Amazon Autos now offers used and certified pre-owned vehicles

Customers can shop for quality pre-owned vehicles online in a shopping experience they know and trust.

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[Jeff Kershner]

Amazon Begins Rollout of Car-eBuying Experience With Hyundai​

Amazon Begins Rollout of Car-eBuying Experience With Hyundai | PYMNTS.com

Amazon is partnering with automotive dealers and brands to bring the Amazon experience to the car-buying process. As of Tuesday (Dec. 10), with this

www.pymnts.com

 

[Greg Spencer]

Hi all,

Are there any Hyundai dealerships here participating in the Amazon Autos online sales program? AutoNews had an interesting update, published Jan. 23, reporting that:

• Since the partnership launched to the public Jan. 3, the program only has sold about 400 vehicles
• So far, the program is popular among consumers with lower credit — scores ranging from roughly 550 to 650

Any theories on why sales would be so slow, or why buyers tend to have low credit scores?

Here's the article URL:Hyundai touts progress on Amazon partnership but says more financing products needed

 

[BillVaughnAlWestNissan]

"So far, the program is popular among consumers with lower credit — scores ranging from roughly 550 to 650."

This is the least surprising thing I've ever heard. Anyone utilizing a digital retail tool knows this pain.

 

[Greg Spencer]

Not being a dealer, just a journalist, I didn't know this was a general problem with online sales. The article explains it's due to people with poor credit not wanting to face the embarrassment of rejection at a physical dealership. But it sounds like, despite this, Hyundai is still bullish on the Amazon program.

 

[BillVaughnAlWestNissan]

Not being a dealer, just a journalist, I didn't know this was a general problem with online sales. The article explains it's due to people with poor credit not wanting to face the embarrassment of rejection at a physical dealership. But it sounds like, despite this, Hyundai is still bullish on the Amazon program.

It's a combination of that and that credit-challenged folks are often more willing to provide their credit information haphazardly.

 

[Zack_AF]

Any theories on why sales would be so slow, or why buyers tend to have low credit scores?

Can't speak to low credit score but if I had to guess reasons for a slow start:
-It's brand new and a lot of consumers are likely unaware of it as an option
-It's January and people are recouping from holiday spending. Tax refunds haven't hit yet.

 

[BillVaughnAlWestNissan]

Can't speak to low credit score but if I had to guess reasons for a slow start:
-It's brand new and a lot of consumers are likely unaware of it as an option
-It's January and people are recouping from holiday spending. Tax refunds haven't hit yet.

I would agree that I'm not altogethered surprised. I'm not judging it for a while.

 

[Alex Snyder]

 

[Ryan Everson]

"So far, the program is popular among consumers with lower credit — scores ranging from roughly 550 to 650."

This is the least surprising thing I've ever heard. Anyone utilizing a digital retail tool knows this pain.

Agreed - Carvana sees similar stats: nearly 44% of its loans are non-prime, and over 80% of those fall into deep subprime territory (the riskiest levels), according to Morningstar.