PRESIDENT’S MESSAGE Amazon-Hyundai Partnership Still Has a Lot of Questions (and Concerns) JAMES B. APPLETON If you need a book, vitamins, or a million other simple, low-cost products, Amazon is an excellent resource. But these items don’t involve trade or financing. They don’t require titles or registrations and don’t involve governmentmandated disclosures and wet signatures on transaction documents. If the goal of the Amazon-Hyundai partnership is to simplify the car buying process and allow consumers to enjoy a frictionless e-commerce experience like the one they have when they’re buying toilet paper, then I applaud the effort, even if I’m somewhat skeptical they can pull it off. However, if the goal is to learn how to bypass Hyundai (and other brand) dealers, then it should be a concern for both dealers and consumers who lose their ability to compare options from various inter- and intra-brand dealers who compete for sales and service when manufacturers sell direct. Amazon is the world’s biggest retailer and a leader in the e-commerce space. But I think they will find selling cars isn’t like selling toilet paper. First, the average sale on Amazon is $50. The average new car sale price today is almost $50,000. Second, most new car deals involve a trade-in and/or financing. A vehicle must also be titled, pursuant to 50 different state laws, and must be registered with each state’s DMV. Don’t forget that many of the transaction documents required to accomplish a vehicle sale require wet signatures, and there are many legal disclosures and government-mandated notices that must be delivered to consumers at the point of sale. These are the very real reasons no one has yet made buying a vehicle feel like any other e-commerce transaction — because it’s NOT. This “pilot” will still require consumers to speak with and take delivery from a dealer. How does this make Amazon any different than other lead generators (i.e., AutoTrader, cars.com, etc.)? Amazon and Hyundai are spinning the partnership as something more, but it remains to be seen what that means. The announcement said customers will be able to do everything online through Amazon and simply go to the dealership to pick up their car. That’s not 7 new jersey auto retailer
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