Soon, You'll Be Able to Buy a Car on Amazon. Should You?

Given Amazon's vast range of inventory, it's hard to believe the online retail giant was once nothing more than a humble online bookseller. But at this point, you can buy everything from apparel to electronics to groceries on Amazon, and often at affordable prices to boot. But starting in 2024, consumers will be able to turn to Amazon to fulfill another need -- buying a car.

A new partnership between Amazon and Hyundai

Amazon has launched a new partnership with Hyundai Motor Company that will allow consumers to shop for a car online in 2024. Customers will be able to go onto Amazon and search for available vehicles in their area based on different preferences, including model, color, and features.

Once customers find a car they're interested in, they'll get the opportunity to choose a financing option that works for them -- which is important, since many people don't just have the money in their savings account to buy a car outright. Customers who buy a car through Amazon will then be able to pick it up from a local dealership or have it delivered to them by a local dealership.

And that's not all. Beginning in 2025, customers who buy one of Hyundai’s next-generation vehicles will be able to enjoy their at-home Alexa experience on the road. Drivers will be able to ask Alexa to play music and podcasts, set reminders, and report on traffic and weather. They'll also be able to adjust their heat or air conditioning at home from the road (assuming their homes are also equipped with that technology).

Should you buy a car through Amazon?

Buying a car is not the same thing as buying a new laptop or TV. There's a lot of thought and research that has to go into a purchase like that.

The average consumer with an auto loan owed $23,479 as of the second quarter of 2023. And the average new monthly car payment is $729.

Before you take on the cost of car ownership, it's important to shop around for not just different vehicle models, but also, different financing options. Perhaps you're able to snag a competitive offer through Amazon. But it's important to explore your options thoroughly before making a decision.

Also, the idea of getting to say that you bought your car through Amazon may be appealing in its own right. But if Amazon doesn't have the best deal on a Hyundai in your area, then it's not worth paying more just to be able to be one of the first consumers to buy a car through the site.

Make a sound financial decision

An estimated 91.5% of U.S. households own a vehicle. And you may be eager to use Amazon to join their ranks. But think through your decision carefully so you don't wind up regretting it or spending more than you need to for a new car.

Also, when you run the numbers, make sure you can afford the total cost of car ownership, including expenses like maintenance and auto insurance. Your car payment itself might seem manageable, but you'll need to make certain you can swing the numerous other expenses vehicle owners inevitably face.