LABELLE, FL -- Amazon has recently started allowing customers to find a price and buy Kia, Hyundai, and Genesis new vehicles directly online at amazon.com/autos.
In an agreement with the manufacturers, Amazon will tell you which local dealer to see, and the "out the door" price on an individual vehicle, including any "junk" fees that are additional profit to dealers (which dealers call "document" or "dealer" fees and is listed on the Amazon price.)
The advantage to consumers is no longer will customers have to spend many hours negotiating with a car dealer to arrive at a final price. The disadvantage is the Amazon price, although fair, may not be the lowest price for which you could buy that vehicle, even at the dealer Amazon points you to.
Another disadvantage is when going to Amazon online, your zip code has to match the zip code of the dealer's area. The nearest dealer in SW Florida is in Naples. There are currently dealers in 48 cities across the country, which include that largest cities in Florida. Your Amazon account has to be a personal account not a business account.
Amazon may also give a "discount" from it's price by giving the customer Amazon gift card "credit" for hundreds or thousands of dollars, usable only to purchase products on Amazon.
With the Amazon price in hand, one can just accept the price and drive the vehicle home, or negotiate with Amazon's local dealer for a better price, or go to any other dealer to negotiate a better price. You probably can expect any dealer to better the Amazon price by at least a few hundred dollars even for the most timid negotiator.
But, buyers must be aware that the dealer will certainly try to "up sell" the customer by adding on very profitable extended warranties and insurance, increasing dealer profit and increasing the consumers payments.
Please leave any comments if you have gone through the Amazon car purchase scenario.
Video: Courtesy of YouTube and Earl On Cars
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