Haig Partners, the leading buy-sell advisory team in auto retail, is quoted in the BBC article discussing the latest development with Amazon offering cars to purchase online through its US site.
Alan Haig, who has extensive experience in automotive retail, including working for AutoNation, one of the nation's largest auto retailers, is quoted in the article offering perspective around a specific portion of the population in the United States, which we believe is growing, that has enormous trust in Amazon as a brand and online retailer. Therefore, buyers may prefer to leverage their online platform to purchase vehicles.
Amazon's entry into selling automobiles online can directly impact dealers and brand loyalty to their dealerships. As Alan shares in the article, Amazon is a trusted brand in which such a large part of the population already has the app on their phone, and therefore, it is easy for the customer to use as their go-to for car shopping.
Alan also shared that it will be standard for some car dealers to worry about how this will impact them from a demand perspective. Still, dealers stand to benefit as if leveraging Amazon makes sales more seamless for the customer and potentially more frequent. Dealers can save on advertising costs. He emphasizes that there must be a "balanced established where all parties would benefit."
Read more about Amazon's entry into online automotive retail here [may require a subscription].
