Ford Motor Co. has reached an agreement with Amazon.com Inc. to sell certified used cars through its e-commerce site, becoming the second major automaker to reach out to buyers through the major online retailer, UNN reports with reference to Bloomberg.
Details
Ford joins Hyundai Motor Co. on the Amazon Autos portal, which allows car buyers to browse, finance, and purchase used cars by clicking the familiar "add to cart" button. Hyundai began selling new cars through the platform late last year, but Ford is only offering certified Blue Advantage used cars on the site, the second-largest U.S. automaker said in a statement Monday.
Car buyers will receive their vehicles through participating Ford dealerships. Currently, Ford dealers in Los Angeles, Seattle, and Dallas have joined the program, but Ford plans to roll out the program nationwide in the coming months. The automaker said that about 200 of its 2,800 dealers nationwide have expressed interest in selling on Amazon.
Ford is taking this step at a time when consumers are looking for simpler and faster ways to buy cars and are increasingly turning to online sellers such as Carvana Co. and CarMax Inc.
The publication notes that this comes at a time when the average price of new cars has exceeded a record $50,000, and more and more ordinary buyers are turning to used car marketplaces in search of what they can afford. According to automotive research site Edmunds.com, the average price of a three-year-old used car in the third quarter was $31,067, the highest in three years.
Some automakers have tried to copy Tesla Inc.'s online sales model, which bypasses traditional dealerships, but Ford is partnering with its independent retailers to sell on Amazon.
"Everyone has an Amazon account," Wendy Lane, senior manager of Ford Blue Advantage, said in an interview. "Knowing that it's a trusted source for consumers and putting our vehicles there, we're very excited to see how it works and how well consumers embrace it."
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Additionally
The publication notes that Ford's goal is to drive traffic to used car dealerships so that buyers stay within the "Ford ecosystem" for service and future purchases, Lane said.
The company will use its experience selling certified cars on Amazon to understand whether it will eventually want to add new cars to the online retailer's automotive store.
Used cars will be sold at a fixed, non-negotiable price. They will undergo a multi-point inspection, and Ford will offer a limited warranty for up to one year or 12,000 miles. Amazon's search tool allows buyers to view service history and vehicle condition reports.
"By partnering with outstanding Ford dealers who share our commitment to customer service, we are creating a car buying experience that combines reliable vehicle certification and the convenience Amazon is known for," said Fan Jin, global head of Amazon Autos.
Ford shares fell less than 1% to 9:34 a.m. in New York. Auto retailers, including Carvana and CarMax, also declined.
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