Does Amazon’s new Car Buying Feature Save Money? Perhaps Not, Say Experts
According to new data released by some automotive and business experts, Amazon's new Auto feature (car buying program) might not save as much money as consumers think.
Amazon Auto Strives to Make Car Buying Easier...Does It?
First launched in December of 2024, and then expanded nationwide, Amazon Auto is a process by which consumers can look up a wide variety of vehicles offered by the online giant.
They're not 'built' by Amazon, but they have partnerships with Hyundai (the flagship), Mazda, Ford Kia and Subaru. Both new and pre-owned vehicles are available.
New Data Shows the Savings Might Not be As Big as Expected.
AIM Group is a leading worldwide business, marketing, and intelligence firm that also deals in classifieds, automotive, real estate and other ventures.
According to data, as well as CarEdge Co-Founder Ray Shefska, is buying on Amazon Auto better, or just different? The process allows buyers to begin and take care of many of the preliminary steps of car buying online, and therefore, it feels like they are skipping some of the "haggling" and annoying parts of vehicle shopping.
However, Shefska says consumers need to remember the car makers and dealers still control much of the process, and pricing.
A No-Haggle Price Doesn't Mean Huge, Wholesale-Type Discount
What appears to be a no-haggle price may instead be a 'set' price that's made to look like a bargain but it's still high enough to protect the manufacturer and dealers profit margins. The price indeed may be a bit lower, but the dealer still has a profit margin.
Shefska refers to this newer Amazon process as a "new front door" to the same house, and would-be buyers still need to do their homework. Buyers still need to learn how the car buying and pricing system works.
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