Ford will be the next automaker to be allowed to display its vehicles on Amazon’s new online car buying site. Starting today, customers can browse, finance, and purchase certified pre-owned Ford vehicles online through Amazon Auto, with in-person pickup at a local Ford dealership.
Ford is the second brand name after Hyundai to list its vehicles on the site. But unlike Hyundai, which launched with participating dealerships in 48 cities, Ford’s vehicles will only be available in Los Angeles, Seattle and Dallas. Amazon says it hopes to add more markets soon.
Ford dealers will still have heavy influence over these online sales, including setting prices, maintaining service and scheduling deliveries. Essentially, Amazon’s platform will be the intermediary between the customer and the dealership. So, Amazon needs to appeal to dealers as much as it does car buyers. The company is making its case by arguing that it can “offer a new sales channel that connects them to millions of Amazon customers.” And with over 310 million active users, Amazon certainly has the numbers to back it up.
The vehicles will be certified pre-owned, meaning you won’t see any brand new vehicles on the site. And all vehicles sold on Amazon will be backed by Ford’s warranty and roadside assistance guarantee. According to Ford, every vehicle you see on Amazon “has been inspected, repaired, and comes with a Ford warranty, Ford Rewards points, and in some cases, a money-back guarantee.”
“It’s about giving our customers the best of both worlds,” said Robert Caffel, executive director of Ford U.S. Sales and Dealer Relations. Said in a release.
People generally hate car shopping, with most surveys showing that the dealership experience tops the list of people’s frustrations. Tesla has helped pioneer a movement toward a direct-to-consumer (DTC) model in which people skip dealerships and buy their vehicles directly from the company. Forty-eight states have laws that prohibit or restrict manufacturers from selling vehicles directly to consumers – although this has recently begun to change due to the popularity of Tesla. Tesla has no independent dealerships, but dealership associations in several states have filed several lawsuits against Tesla to prevent the company from selling cars directly.