Amazon will allow dealers to sell cars on its site, starting with Hyundai

Next year, Amazon will allow car dealers to sell cars through its site, starting with South Korean automaker Hyundai, the company announced Thursday.

The company has slowly established itself in the car buying industry over the years, launching digital showrooms on its site allowing buyers to research and compare vehicles, but not purchase them outright via Amazon. Consumers can also purchase automotive products, such as spare parts, through its site.

Starting in 2024, Amazon will allow shoppers to buy a new car online and then pick it up or have it delivered by their local dealership. Consumers will be able to search for vehicles available in their area, make a selection, and then check out on Amazon. The company said the new feature “will create another way for dealers to advertise their selection and provide convenience to their customers.”

It’s unclear whether Amazon or the dealership will actually sell the vehicle. Traditional automakers such as Hyundai have complex relationships with dealers that are backed, in many states, by laws that make it difficult, if not illegal, to bypass franchise dealerships and sell new vehicles directly to consumers.

Tesla and other electric vehicle startups such as Rivian have developed workarounds in many states to sell vehicles directly online to consumers. These include initiating sales in states that do not prohibit the practice or taking legal action to combat such laws, as they have done in Michigan.

There are less strict laws regarding the sale of used vehicles, making it easier for companies like Carvana and others to sell used cars and trucks online directly to consumers.