Amazon Launches Amazon Vehicles, You Can Buy Your Cars Online SOON

Aug 29, 2016 07:55 AM EDT | Mariechris Felipe

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Amazon, one of the biggest names in the online retail product world has gone an extra mile for launching its newest web category called "AMAZON VEHICLES" that allows people to search for cars they would want to buy. If you are a car fanatic, this might get your interest as the next big thing: buying cars online might happen in the near future.

helps you browse thousands of different car models and let the customer compare prices of new and used cars. They can view its specifications, the car's strengths, values, videos and pictures on how it was changed from previous models or even read customers reviews.

While this cool website might not yet be able to sell you a car directly, it can be a great tool for research purposes and can be the next major connection point between buyers and sellers. It means that Amazon would basically become a major producer that works for the dealers and car buyers.

Although a lot of speculations about Amazon - taking a step toward possible online car sales are heard, this road is still uncertain according to an Amazon representative. There are lots of major complicated processes that they needed to deal with such as franchise laws, inventory and financing.

  • FRANCHISE LAWS - Amazon Vehicles would have to be an authorized dealer, and they should be register in all the States of America. These laws are often written to protect the local dealers from too much competition in the region.
  • INVENTORY - Vehicles take up a lot more space than the standard small items in warehouses. It is a huge expensive investment for the online retailer without having the facility for a traditional dealership.
  • FINANCING - In order for Amazon to sell you a car, they would need to get approved for finance or lease. This would require Amazon to either assign a finance department for cars or become a broker for major lenders.

However, we have seen Amazon's keenness from year to year, selling goods and services and we cannot predict what they could do and offer in the near future. The question here is not "how" are they going to do it but "when" will they do it.

"Anything that somebody can buy or sell, Amazon is interested in providing and buying -  and cars should be no different. They changed the way we buy everything. The time might be right for people of a certain generation who are interested in buying online." - Dave Sullivan, manager of product analysis for automotive research firm - Auto Pacific said.

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