Amazon announces online car sales for the first time, starting with Hyundai

Original Article ↗ Hacker News Discussion ↗

Amazon’s move to let US customers buy Hyundai vehicles through its platform, while leaving dealerships as the actual sellers, is being met with skepticism about consumer benefit. Many see entrenched dealership practices—markups, upsells, opaque pricing, and regulatory protection—as the real problem, and doubt Amazon can or will curb these behaviors, especially without direct manufacturer sales. Others note potential advantages such as better inventory transparency and tighter accountability, but worry this could simply add another middleman taking a cut without fixing the underlying model.

Role of Dealerships

  • Amazon is only a marketplace; the legal seller remains the dealership.
  • Many see this as failing to solve the core problem: the franchise dealer model and its incentives to upsell, mark up, and play pricing games.
  • Some hope Amazon could eventually become a giant dealer or conduit that disciplines or replaces legacy dealers; others think dealers will game the system as they do with existing portals.

Perceived Benefits and Drawbacks of Amazon’s Move

  • Possible benefits:
    • More honest, real-time inventory versus current dealer sites that act as lead funnels.
    • Better enforcement of behavior via Amazon’s reputation systems and “repeated game” dynamics.
    • Integration with Amazon’s ecosystem, including targeting accessories and maintenance products to known vehicle owners.
  • Concerns:
    • Amazon already struggles with counterfeits, fake reviews, and cluttered search results.
    • Unclear if Amazon will handle loans, trade-ins, or just pass buyers to dealers.
    • Risk that Amazon simply layers its fee on top of dealer markups.

Dealership Experience vs. Desired Buying Model

  • Strong dislike for haggling, opaque fees, and time-consuming upsell sessions for add-ons and “protection” products.
  • Some describe extreme markups (e.g., $5–10k over MSRP) and bait-and-switch tactics.
  • Others report positive dealer experiences: responsive service, loaner cars, and remote delivery, especially when paying cash and negotiating hard in advance.
  • Direct sales models (e.g., Tesla) are widely praised for fixed pricing and minimal pressure.

Regulation, Direct Sales, and Safety Arguments

  • Many attribute the persistence of dealerships to lobbying and regulatory capture, not safety.
  • One line of argument claims dealership systems are “load-bearing” for safety and consumer protection; multiple replies rebut this as disconnected from actual licensing rules and used-car realities.
  • Broad sentiment favors legalizing direct manufacturer-to-consumer sales.

Comparisons and Alternatives

  • Costco’s auto program is cited as a similar, sometimes effective intermediary, though dealers may ignore agreed pricing in tight markets.
  • Carvana/driveway-style platforms are referenced; examples show dealers canceling online sales when they can get higher in-person prices.

Trust, Strategy, and Cultural Notes

  • Some trust Amazon’s customer service even for expensive items; others trust traditional dealers more for warranty and service follow-through.
  • A few see this as a post-peak, scattershot Amazon experiment rather than a transformative move.
  • Thread includes humor about Amazon’s search UX, misdelivered “off-brand” cars, and drone delivery.