Car Dealership Guy Podcast

Amazon Is Officially Selling Cars, Tekion Files Lawsuit Against CDK Global, Used Car Demand Stays High | The Weekly

Dec 14, 2024

Amazon has launched online sales for Hyundai vehicles, marking a significant shift in automotive retail. Meanwhile, used car demand remains robust as buyers lean towards prime auto loans for pre-owned vehicles. Wholesale prices for used cars are up year-over-year, sparking interest among dealerships. Dealer reputations are improving online, yet customer complaints persist. Additionally, CDK Global is countering Tekion's anti-trust lawsuit, igniting discussions about competition in the industry.

06:50

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Quick takeaways

Amazon's new platform simplifies the car buying process by offering online purchasing of Hyundai vehicles while involving physical dealerships for transaction completion.

The shift in the auto finance market shows that prime borrowers are increasingly favoring used cars due to affordability concerns and lower financing costs.

Deep dives

Amazon's Expansion into Automotive Sales

Amazon has launched a new car shopping platform, Amazon Autos, in partnership with Hyundai, allowing customers to browse and purchase new Hyundai vehicles entirely online in 48 cities. This platform streamlines the buying process by providing instant valuation for trade-ins, upfront pricing, and direct financing options, thereby maintaining Amazon's signature convenience. However, the platform still relies on actual physical dealerships to complete the transactions, positioning Amazon as a facilitator rather than a direct seller. The potential for this initiative could lead to further partnerships with other automakers, significantly impacting the automotive sales landscape.

Shifting Trends in Automotive Sales and Financing

7min

Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week.

This week's top stories:

1. Amazon officially starts selling new Hyundai vehicles online

2. Prime auto loan borrowers lean toward the used car market

3. Wholesale used car prices up year-over-year in November

4. Dealer reputations improve online, but customers still have gripes

5. CDK Global fires back at Tekion’s anti-trust lawsuit

Have a tip for our editorial team? Send us your scoop at insights@cardealershipguy.org.

This episode is brought to you by:

Upstart — Dealers, if you're looking for a smarter way to connect your customers with financing, Upstart has you covered. They partner with over 100 banks and credit unions, leveraging advanced AI models to provide superior credit products. From automotive retail loans to refinance options, Upstart’s platform is designed to meet the needs of your business and your customers. Learn more at upstart.com or click the link in the show notes below.

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