Ford announced a new partnership with Amazon on November 17, enabling Ford’s authorized dealers to sell certified pre-owned cars through the e-commerce giant. Following Hyundai, Ford became the second car manufacturer to sell vehicles on Amazon.
This collaboration allows consumers to browse dealer inventories of pre-owned cars directly through Amazon, and enables them to apply for loans, complete paperwork, and schedule pickup times online from participating Ford dealers. However, the final signing of documents may still require an in-person visit.
According to Reuters, the initial focus of the project will be on Los Angeles, Seattle, and Dallas, offering only Certified Pre-Owned (CPO) cars. Despite being used, these vehicles have undergone rigorous inspection, refurbishment, and certification, providing a higher level of quality assurance compared to non-certified used cars, and often come with warranties similar to new cars.
Car manufacturers have been striving to provide online car-buying options for consumers who are reluctant to visit physical dealerships. For instance, Tesla sells electric cars directly to consumers online. However, Ford and General Motors are constrained by U.S. state laws and are required to sell through authorized dealerships.
Ford CEO Jim Farley previously mentioned that Tesla’s direct sales model brought significant cost advantages. Under Farley’s leadership, Ford has expanded its online sales channels, especially in the electric vehicle segment.
Two years ago, Amazon announced that it would allow car dealers to sell vehicles through its website. At the end of 2023, Hyundai from South Korea became the first car manufacturer to sell new cars on Amazon, showcasing a similar collaboration.
Unlike Hyundai selling new cars, Ford’s partnership with Amazon involves certified pre-owned cars. Earlier this year, Amazon collaborated with car rental company Hertz to sell used cars on its platform.
Ford stated on Monday that out of approximately 2,900 dealerships in the United States, over 160 dealers have expressed willingness to collaborate with Amazon, and the partnership process has commenced. Currently, about 12 dealers have successfully joined and gone live, with approximately 10 more expected to go live next week.
Fan Jin, Amazon’s Global Head of Automotive, stated in a release, “The inclusion of Ford Certified Pre-Owned vehicles on the Amazon Automotive platform signifies another exciting expansion for our store, allowing consumers to purchase thousands of high-quality vehicles with Ford’s comprehensive testing and quality assurance.”
Ford also mentioned that vehicles sold through the Amazon partnership will come with a 14-day or 1,000-mile (whichever comes first) refund guarantee. Additionally, Ford will offer three different levels of certified pre-owned cars with varying warranty coverage. Currently, certified pre-owned cars are available on Amazon Automotive platforms in Los Angeles, Seattle, and Dallas, with plans to expand to more cities in the coming months.
Despite establishing partnerships with Hyundai and Ford, Amazon’s ultimate sales channel remains the authorized dealers. The relationship between traditional car manufacturers and dealers is complex, and laws in many states make it difficult, and even illegal, to bypass authorized dealers and sell new cars directly to consumers.
Laws regarding used car sales are relatively more lenient, making it easier for companies like Carvana and Hertz to sell used cars and trucks directly to consumers online.
(References: Reuters, CNBC)