E-commerce giant Amazon (AMZN) is expanding its online auto platform to include used and certified pre-owned (CPO) vehicles in order to give car buyers more options and flexibility. Starting on August 4, shoppers in Los Angeles will be able to browse and purchase used and CPO Hyundai (HYMLF) vehicles directly through Hyundai dealers on Amazon’s platform.
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It is worth noting that the Amazon Autos program already allows customers to buy new Hyundai cars through Amazon’s website, with the company positioning it as a more transparent, convenient, and streamlined way to shop for vehicles. Interestingly, Fan Jin, Amazon Autos’ global director, stated in an interview with Automotive News that “customer satisfaction with their purchase on Amazon Auto is off the charts.” He added that broader consumer trends show a growing interest in buying cars online, which gives Amazon momentum to expand further.
As a result, the platform has grown to 130 cities since launching at the end of 2024 after testing internally with Amazon employees and select Hyundai dealers. However, Jin explained that there are a lot of technical requirements in order to integrate the platform with dealership software that provides live inventory, real-time pricing, and transaction processing. In fact, unlike Costco’s (COST) auto program, which only refers members to dealers for pre-negotiated pricing, Amazon Autos manages the entire buying process directly on its site.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 44 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $265.16 per share implies 24.8% upside potential from current levels.
