Ford taps Amazon to let shoppers buy its used cars online
Buyers will take delivery through participating Ford dealerships. The program will roll out nationally in the coming months.
Ford Motor Co. has struck a deal with Amazon.com Inc. to sell certified used cars through its e-commerce website, becoming the second major automaker to reach customers through the massive online retailer.
Ford joins Hyundai Motor Co. on the Amazon Autos portal, which allows car buyers to browse, finance, and purchase a used car by clicking on the familiar “add to cart” icon. Hyundai began selling new cars through the platform late last year, but Ford is only offering its “Blue Advantage” certified used cars on the site, the second-largest U.S. automaker said Monday in a statement.
Car buyers will take delivery of their vehicles through Ford dealers participating in the program. So far, Ford dealers in Los Angeles, Seattle, and Dallas have signed up, but Ford plans to roll out the program nationally in the coming months. The automaker said about 200 of its 2,800 dealers nationwide have expressed interest in selling on Amazon.
Ford’s move comes as consumers are looking for simpler and faster ways to buy cars and are increasingly patronizing online car sellers such as Carvana Co. and CarMax Inc.
It also comes at a time when average new car prices have topped a record $50,000 and more mainstream buyers are turning to used car lots to find something they can afford. The average price of a three-year-old used car was $31,067 in the third quarter, the highest in three years, according to automotive researcher Edmunds.com.
Some auto manufacturers have attempted to emulate Tesla Inc.’s online sales model that bypasses traditional dealers, but Ford is working with its independent retailers to sell on Amazon.
“Everyone has an Amazon account,” Wendy Lane, senior manager of Ford’s Blue Advantage unit, said in an interview. “Knowing that it is a trusted source for consumers and having our vehicles listed there, we’re really excited to see how it works and how well consumers adopt it.”
Ford’s goal is to drive traffic to its dealers used-car lots so that car buyers stay in “Ford’s ecosystem” for service and future purchases, Lane said.
The company will take what it learns from selling certified used cars on Amazon to see if it eventually wants to add new cars to the online retailer’s automotive storefront.
The used vehicles will be sold at a set price, with no haggling. They will have received multipoint inspections, and Ford will offer limited warranties of up to one year or 12,000 miles. The Amazon search tool enables buyers to see a vehicle’s service history and condition reports.
“By working with exceptional Ford dealers who share our commitment to customer service, we’re creating a car buying experience that combines trusted vehicle certification with the convenience Amazon is known for,” Fan Jin, global leader of Amazon Autos, said in a statement.