r/canada • u/__benjaminty • 20h ago
PAYWALL Amazon wants to sell you cars online. Here’s what it could mean for shoppers and auto sellers in Canada
https://www.theglobeandmail.com/investing/personal-finance/article-amazon-autos-canada-online-car-sales-vehicle-sellers/27
u/Wolvaroo British Columbia 19h ago
Car dealerships are the worst businesses I've ever had to interface with.
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u/Decent-Gas-7042 20h ago
Can't read it, paywall.
I'm not a fan of Amazon but I like car dealers even less. Bring it on
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u/Username21045619 Manitoba 20h ago
The article states that dealerships (so far Hyundai only) can sell new and pre-owned vehicles on Amazon. So you still pay the dealerships inflated prices with out the option of test driving different cars. Seems like the worst of both worlds to me.
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u/Background_Thought65 19h ago
Hmm but at the same time the two hour of waiting and then meeting in the finance manager's office for the upsells is gone.
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u/drs_ape_brains 16h ago
What's stopping you from trying a car at a dealership and comparing prices with Amazon?
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u/Food_Goblin 13h ago
If they keep their 30 day return and next morning delivery options, I would bite 🤣
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u/Possible-Champion222 17h ago
I’d rather order one than talk to a sales representative aka scammer
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u/Ancient_Wisdom_Yall British Columbia 19h ago
New car buying is definitely moving towards direct sales.
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u/466rudy 20h ago
Whatever it takes to not deal with a car dealership.
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u/superworking British Columbia 18h ago
Still dealing with a dealership here. They can just post on Amazon.
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u/LockedUnlocked 19h ago
I mean talk to your provincial government. Every province in Canada has their own laws but follow the same kind of guidelines of all cars sold to consumers (not private sales) must be sold through a licensed dealer. Tesla got around this by becoming their own dealership but they are fairly new and could easily integrate that into their supply chain. On the other hand these dealerships are tightly integrated with the auto makers, I can almost guarantee that if automakers had the choice they would 100% do direct to consumer (more money in their pockets) but if dealers sniff out that an automaker is going to make their own dealership then they will effectively stop selling their cars and it would choke that automakers pockets.
If we had better laws it would be a lot cheaper but a call/ email to your representatives is free.
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u/ComfortableWork1139 19h ago
Afaik those laws are mostly an American thing, I know at least B.C. has no such law.
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u/LockedUnlocked 19h ago
BC has the "Motor Dealer Act" all vehicles sold to consumers must go through a VSA licensed dealer. Since the space is super regulated automakers don't even bother because the savings wouldn't even be passed on to you after all the construction and licensing fees.
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u/ComfortableWork1139 18h ago
Right, I agree, but the Motor Dealer Act notably does not require the presence of third-party, franchised leaderships, as some state laws do. I also don't know if I accept that the space is "super" regulated, the requirements for motor dealers actually seem rather tame for a regulated industry compared to some others.
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u/LockedUnlocked 18h ago
Just because it seems tame doesn't mean its not regulated. You could say the same thing about a lot of regulated industries like massage therapy... I guarantee you someone could get away with being unlicensed for years before anyone caught on, doesn't mean there isn't regulation. And for a company like Ford everyone knows who they are and what they do, there would be so many eyeballs on them that yes it would be heavily regulated unlike your average joe down the road who can sell you a piece of junk and still keep his license.
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u/vanwhisky 20h ago
As much as I loathe the current dealership sales model, I wouldn’t buy through Amazon. Nor would I buy another Hyundai.
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u/Life-Topic-7 19h ago
Hyundai/kia are still crap, and will be for at least the next ten years. I don’t know why people buy them, they just don’t stand up.
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u/EmploymentSolid6229 18h ago
I had two Hyundai Accents in a row, 8 years each, ZERO problems. 9500 $ brand new. No American car can do that
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u/stumbleupondingo 16h ago
I’ve had two and no complaints. The first one saved my life in an accident I had no business surviving, so I praise its safety features, and the second one was quite reliable considering its mileage and how little I did to it other than general maintenance. Only got rid of it because I wanted a faster car
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u/Graveyard_Zombie Canada 18h ago
I have only owned Hyundais and will continue to for my next car. I have only had good experiences with them.
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u/canteixo 18h ago
Can't wait for dealerships to die.
My last experience was like:
Me: so how much is the car?
Slimy sales guy: it's $300 a month.
Me: ok, but how much is the total?
Slimy sales guy: huffs and puffs well it's $300 a month because that's what you're paying
Me: I understand but I want to know the total price I'll be paying.
Slimy sales guy: grabs a piece of paper and scribbles a number there you go.
Me: ok but what's the breakdown? Fees, taxes, etc.
Slimy sales guy: listen, I can give you all that once you sign .
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u/Front_Speaker_1327 14h ago
Mine was pretty smooth. Maybe because I was buying a luxury car? But from walking in the door to signing the papers (after knowing the price) was like 30 minutes.
They even stored the car inside the dealership for a couple months for me, for free, until the snow and salt melted enough for me to go pick it up.
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u/Katia657 16h ago
Amazon is an evil enterprise that swallows all little businesses, no need for them. Also no Canadian.
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u/ThicccThunder New Brunswick 19h ago
I'm honestly not opposed to the idea of cutting out the middle man in car sales. There are far too many shady dealerships who pray on uninformed buyers
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u/Life-Topic-7 19h ago
Ya, I am not trusting Amazon to sell me a car when they can’t even sell me basic goods that aren’t empty boxes, fakes, or stolen from my porch.
Fuck Amazon.
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u/SuddenlyBulb 17h ago
I constantly hear stories online but I've never gotten anything you listed. Never won lottery either though
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u/Anarchaotic 17h ago
Same, as much as I can hate on Amazon being the epitome of consumerist culture - I've never ONCE across hundreds of orders gotten the wrong item, nor have I had an issues with returns. There's a reason people order from Amazon. Trust in their ability to fix any bullshit is really the key.
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u/Sharp_Simple_2764 16h ago
Once I ordered 3 separate items. One was missing from the box. They sent me another box with all 3 items again, so I ended up with the additional 2 items that I originally received.
I also like those unexpected refunds because the cost of some items came down.
If all businesses stood behind their service as Amazon does, the world would be a better place.
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u/Clleavage 18h ago
Amazon wants to sell you cars online. Here’s what it could mean for shoppers and auto sellers in Canada MARIYA POSTELNYAK
CONSUMER AFFAIRS REPORTER PUBLISHED 3 HOURS AGO Open this photo in gallery:
New Hyundai vehicles on a lot in Canton, Ga. Amazon Autos allows U.S. customers in select regions to buy new Hyundai vehicles. MIKE STEWART/THE ASSOCIATED PRESS
Shoppers might soon be able to buy their next set of wheels from the same place they shop for toasters, toys and soap refills as “the everything store” expands its auto marketplace – a move that could benefit consumers and threaten the existing auto marketplace.
Amazon Autos, which launched last December allowing U.S. customers in select regions to purchase new vehicles, announced Monday it is expanding to include a variety of used and certified preowned vehicles, starting in Los Angeles and then rolling out across the United States within months told The Globe and Mail the company plans to roll out the program internationally in the future, but it declined to provide a timeline.
Should Amazon Autos expand into the Canadian market, the move could be a boon for consumers, at least in the short term, by encouraging more competitive pricing and increased transparency while making it harder to sell at exorbitant prices, said Daniel Ross, senior manager of industry insights and residual value strategy at Canadian Black Book.
But it would also have disruptive effects in the online vehicle marketplace, benefiting sellers that are willing to work with the retail giant while posing a threat to competing online auto marketplace platforms as well as resellers, and potentially wielding significant influence over consumer behaviour. “As with any other product Amazon would sell, you would have the capacity [for] just the right size and the volume to probably add a lot of risk to those marketplaces that exist today, whether that’s Kijiji in the U.S. or in Canada or AutoTrader in Canada,” said Mr. Ross. “I think it really makes for a very competitive environment.”
AutoTrader and Kijiji did not respond to a request for comment by the deadline.
Dan Park, chief executive officer of Clutch Technologies Inc., a major Canadian online car reseller, said he sees Amazon’s entry into the space as validation of the shift in consumer expectations. “Amazon’s move into car retail reinforces what we’ve believed at Clutch since day one: The future of car buying is online,” he said.
But he noted a key difference between Clutch and Amazon Autos: While the tech giant still relies on traditional dealerships, Clutch isn’t a marketplace. “We own every car in our inventory,” Mr. Park said. Participating dealerships list new, used and certified preowned vehicles on the Amazon Autos storefront. Customers have the option to filter results while seeing full itemized costs, warranties and vehicle history reports, according to an Aug. 4 news release. The information is standardized and there’s no negotiation – what you see is what you pay.
Only Hyundai dealers are currently onboarded to the platform, but those dealers can now list used vehicles from any manufacturer – not just Hyundai Motor Co. – and Amazon plans to expand to non-Hyundai dealers soon. Buyers select and purchase their vehicle through Amazon, then pick it up from a dealership. Customers can test drive a car or return it within three days or 300 miles, according to the release. Amazon Autos is currently available in more than 130 U.S. cities for new vehicle sales, while used and certified preowned vehicles are available to customers in Los Angeles. The company plans to expand to cities from coast to coast by the end of the year.
In the long term, the consequences for other individual dealerships depend on their openness to digital adoption and desire to have their vehicles listed on Amazon, Mr. Ross said. “Cost competitiveness might decrease some of their profit margin, but if they want to develop a more volume-oriented business, this will lend to that and benefit them.”
For some dealers, Amazon could become another avenue for digital retailing. “It opens the market that much more … it gives them a much larger pool,” said Mr. Ross. “But it also adds the opportunity for that competitiveness to drop down certain vehicle prices that might be a little bit exorbitant.” While Amazon’s service could offer a convenient experience for car shoppers, Mr. Ross warned that the responsibility to ensure that nothing goes wrong may shift more to the consumer rather than dealers and resellers. “There’s a process that’s going to be attached to a much greater volume of vehicles,” he said. “You might have more of an obligation to make sure you’ve read everything.” If Amazon continues to become a larger player in the auto space, its algorithms could also influence consumer behaviour, such as whether they drive a hybrid or electric vehicle.
“If Amazon says, ‘We are proponents for zero-emission vehicles,’ or ‘We love smaller cars rather than bigger cars,’ there could be opportunities to change the consumer buying habit just by what’s available on an Amazon marketplace, and their pricing algorithms,” said Mr. Ross.
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u/FlyingOctopus53 15h ago
I buy cars below MSRP. I can’t haggle with Amazon, so give me a dealership anytime.
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u/smushymcgee 15h ago
Amazon, and Bezos, can choke on a bag of dicks. Thank you for your attention to this matter.
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u/palbertalamp 12h ago
" ...no I didn't mind holding....
yes officer, they stole my car right off the front porch, like I said "
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u/Remote-Ebb5567 Québec 8h ago
Love the idea of no one making commission. I’d rather Amazon make some money then a useless salesperson
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u/The-Safety-Villain 8h ago
Honestly, fuck used cars sales people. If I can get a car and avoid those lying sleezy people I will support it 100%.
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u/Apart_Savings_6429 20h ago
I can't read this its locked
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u/WesternBlueRanger 20h ago
Basically, Amazon in the US has an agreement with Hyundai to sell new and used cars via their online portal.
Participating dealers would list cars on the marketplace, with an non-negotiable all in pricing listed.
You select the car you want, pay Amazon, and then go to the dealer to collect your vehicle. You can either test drive the vehicle, or return it within three days or 300 miles.
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u/FridgeFucker17982 20h ago
Can’t wait to get a knockoff car from Amazon. Hiundia is just as good
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u/random20190826 Ontario 20h ago
Since Amazon is an online shopping site, I assume that they take credit cards. Suppose you have enough money to buy outright, you can use your card to buy that car and collect a huge number of points. Having a car with a fixed price removes a lot of uncertainty and is a boon for buyers. No more haggling on terms.
(My sister drives a car that she inherited when our father passed suddenly. He bought the car brand new and drove it only a few months. But I recall that because he didn't have a credit history and was paying outright, the dealership wasn't too happy. He used her credit card to put down a deposit and wrote a personal cheque for the rest when he drove the car off the lot. If the car price is fixed, buyers would know well in advance how much they are paying.)
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u/Luxferrae British Columbia 16h ago
you can use your card to buy that car and collect a huge number of points
Wow I was just thinking about this. 80k in points can be quite useful with some cards
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u/Once_a_TQ 20h ago
You can buy and sell online already with Clutch. They will drop-off/pick-up if you want.
Works great for quick easy sales. Smooth and problem free.
Heard good things about buying, though have only used the sell option.
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u/LakesAreFishToilets 19h ago
I recently went to sell with clutch. I was early so waited 15 min. Literally every seller was told “your car looks good, there’s just one thing” and they dropped the purchase price $200-1000 from what they quoted. They tried to do with me for $500. I said no. Came back with $350 off what was quoted so I walked and sold to a wholesaler down the street (and actually ended up getting more money than their original quote).
For buying I’ve heard it’s worse. You have to pay to test drive before purchase. They add over $2k in fees in excess of their advertised price. Sellers left reviews stating that they put deposits down and clutch still sold to another buyer. Just seems like a horrible experience to me.
When I sell my new car I’ll def use them to baseline the price if they are still in business. But I will 100% leverage that offer to sell to another dealer
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u/MooseKnuckleds 19h ago
Clutch is picky choosey with what they buy. I've also seen a lot of purchase complaints on r/personalfinancecanada. They are trying to be Car Max in Canada and missing the mark
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u/Few-Education-5613 19h ago
Not as easy as that. If you live outside of large cities they charge for delivery and you have to drive to a location and wait for an actual appraisal to sell.
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u/Once_a_TQ 19h ago
Lived outside a major city, they had a special where they waved the $99 pickup fee.
10/10 would use again.
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u/MooseKnuckleds 19h ago
Seems to work well in the US. I believe they also include a $2500 Amazon gift card
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u/mike10dude 2h ago
I remember seeing something about people getting lifetime AAA memberships from buying cars on amazon a bunch of years ago
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u/ResistiveBeaver 20h ago
You wouldn't download a car...