With the vehicle purchasing experience changing drastically over the past decade thanks to companies such as Carvana and Vroom, consumers are looking for easier ways to purchase vehicles from dealerships. The pandemic also helped shift the dealership model from the intimidating car salesman pitches to streamlining the vehicle sales process.

Tesla, one of the pioneers of car buying, has made it easy to purchase your vehicle online and easily pick it up without waiting hours. Hyundai, another well-known vehicle manufacturer, has green-lighted an initiative to allow customers to order a vehicle on Amazon and take delivery at a local dealership. Here, we’ll look at how this process works and why this could be the future of purchasing vehicles.

Why Hyundai Has Decided to Sell on Amazon

In a move that accelerates their vehicle’s built-in Alexa programs, Hyundai has teamed up with industry giant Amazon to offer their cars to be purchased online through the Amazon website. To make their customers’ lives better and easier every day, Hyundai and Amazon are excited to make it simpler for consumers to buy Hyundais on the website and use Amazon’s Alexa voice assistant in Hyundai vehicles for entertainment, shopping, smart home automation, and other great tools.

Hyundai plans to unveil this purchasing experience by next year, allowing their newest lineup to be easily accessed, purchased, and financed online. To help accelerate its digital transformation, Hyundai Motor Company has also selected Amazon Web Services (AWS) as its preferred cloud provider.

Transforming the Car Buying Experience For Consumers

Before companies like Carvana streamlined the car buying process and the pandemic made purchasing a vehicle in person harder, consumers only had to visit a showroom and speak to a salesperson. This could get taxing due to pushy salespeople, inclement weather, and the daunting task of walking through a sea of vehicles before finding the one that’s right for you.

Since the birth of the internet, consumers have continuously gotten more tools at their fingertips to make the car buying experience easier and more successful. With a few clicks of a mouse, you can browse a dealership’s available vehicles, discover financing options, and view the vehicle’s CarFax, all from the comfort of your home. You can also read everything about a new car on the automaker’s website.

Popular automaker Tesla has helped to bring this model to the mainstream as you can simply order a new vehicle from their app, show up at the dealership, and have your vehicle delivered in less than an hour. In a world where people are busier than ever, taking an e-commerce approach to the vehicle purchasing experience will surely be adopted by many automakers in the near future.

Impact on the Automotive Industry and Dealerships

So, what does this mean for the automotive industry and dealerships? Obviously, consumers will not stop purchasing vehicles anytime soon, but how they buy them is expected to change rapidly.

While buying a car online might have been harder to digest years ago, with the recent technological changes, many consumers prefer this car-buying method. This could force the automotive industry to change how auto dealers and manufacturers interact, offering a more streamlined process for consumers to purchase.

Dealerships will have to adapt to this change as the normal foot traffic of potential car buyers may shift to more people stopping in to pick up their pre-purchased vehicle. You may see dealerships training their staff to be more well-versed in post-purchase support versus the traditional sales-oriented, pre-purchase support. 

You may also see a decrease in overall staff as financing will be handled online compared to in-house, like the traditional dealership model. You can expect dealerships to become more of a fulfillment and delivery center rather than a place where consumers shop for vehicles.

7 Benefits and Challenges of Online Car Purchases

While purchasing a vehicle at the click of a button seems enticing, a few benefits and challenges come with the e-commerce model:

Benefits of Online Car Purchases

No Sales Pressure – One of the biggest benefits of purchasing a vehicle online is no sales pressure. Visiting a dealership and speaking with a salesperson driven by commission can introduce unneeded stress and anxiety, making many people uncomfortable, especially if the salesperson is rather pushy.

No Negotiations/Haggle – When purchasing a vehicle in person, there is usually a bit of negotiation and haggling with the financing department that can get long-winded. With online car buying, you can get all your financing options laid out for you.

Shop At Your Pace – Shopping for a vehicle in person usually requires a few hours to visit the right dealership, test drive the vehicle, discuss financing options, and look over other cars. With online shopping, you can shop for vehicles virtually anywhere, anytime.

Streamlined Process – The car buying process is too long-winded for both parties. With online car buying, both the dealership and the consumer get time back, making it more profitable and convenient for dealerships.

Challenges of Online Car Purchases

Cannot Test Drive The Vehicle – One of the most significant drawbacks of purchasing a vehicle online is that you cannot test drive the car. This may not be important for those who know what they want, but it can be a severe drawback for someone unsure of their desired model.

Financing Options May Be Limited – With online car shopping, financing options will be limited as dealerships want to make this process pretty straightforward. With many dealerships, an in-person financing department can work with your financial situation to find better financing options. This helps you afford a vehicle more easily while the dealership gets to close the sale.

Trade-Ins – Lastly, if you want to trade in a vehicle, getting the most money for your car can be more challenging when purchasing a vehicle online. This area has become easier over time, but many dealerships will still want to view your vehicle in person before giving you a solid offer.

Ensure Your Vehicle Is Protected with an Extended Warranty

No matter where you purchase your vehicle, whether it be online or in person, protecting it with an extended warranty is essential to keep you protected from unexpected breakdowns. While new Hyundai cars will come with factory warranties, you will be responsible for covering any repairs out of pocket once they expire. Since vehicles can break down at any time, you can be in a financial bind if you are unprepared.

With an extended warranty from Endurance, you can choose from various plans to fit your budget and coverage needs. From drivetrain coverage that protects your most expensive components to factory-like warranty protection, you can easily find the perfect plan to cover your vehicle. 

Each Endurance protection plan includes 24/7 roadside assistance and a full year of Elite Benefits. These benefits, available for a small activation fee, offer perks like key fob replacements, total loss protection (up to $1,000), collision discounts (up to $500 per collision with a $1,000 limit), and coverage for up to four replaced or repaired tires.

To discover an Endurance protection plan tailored to your needs and budget, request a FREE quote or call (800) 253-8203. 

Don’t forget to explore our blog for additional articles covering DIY maintenance tips, vehicle buying guides, electric vehicle reviews, and answers to common extended warranty questions.