If you’ve ordered anything from Amazon, you’re familiar with boxes of your latest purchases showing up on your doorstep. However, with the introduction of Amazon Autos, you can get more than just your essentials delivered. But is buying a car on Amazon a good idea? Here’s everything you need to know about how this new option compares to buying a car the old-fashioned way.

What is Amazon Autos and How Does it Work?

Dubbed Amazon Autos, the largest online retailer’s new database of online car listings has generated headlines over the past year for a number of reasons. Some even heralded the launch as a true game-changer in the car market. But in reality, buying a car on Amazon isn’t all that different from buying one from your average dealership. That’s both good and bad news for consumers.

Here’s how buying a car on Amazon works:

• Participating automakers (like Hyundai) or dealers (like rental car giant Hertz) can now list their inventory on Amazon 
• Amazon advertises no-haggle pricing to relieve car buyers’ stress surrounding unpleasant negotiations 
• Once you make a purchase, you have to travel to the dealership in person to sign the paperwork 

Make no mistake: you’re still buying from a dealer; Amazon Autos only acts as an online marketplace for cars. The cars listed there are the same ones that dealerships list on their own and third-party websites. Amazon just makes online car shopping feel like the branded experience nearly 200 million Americans know and use frequently. 

The Pros and Cons of Buying a Car on Amazon Autos

Amazon doesn’t hold any of the inventory you see online. They’re merely combining the online shopping experience consumers expect from this global ecommerce giant with online car shopping. In most cases, this approach requires trading no-haggle, “competitive” pricing for convenience.

In addition, dealers advertise no-haggle pricing to ensure healthy profit margins on their end while playing on consumers’ dislike of dealing with salespeople and negotiating. Remember, dealers have plenty of profit in the form of holdbacks, manufacturer-to-dealer cash, and even volume bonuses. That’s not to mention the money they make when you finance your purchase, especially if you opt for an extended warranty or similar add-on. 

All of this means that you’re much more likely to overpay on the car you choose than if you were to go your own way and negotiate confidently. Admittedly, for some, Amazon Autos might be a compromise worth making to skip the haggling process. Yet, it’s important to recognize that you’re instantly limiting your ability to land a great deal when you forfeit your right to negotiate car pricing. 

3 Key Tips: How to Approach Buying a Car on Amazon Autos 

If there’s anything we’ve learned about the car buying process, it’s that exploring your options only helps you make a better deal and drive away without that sinking weight of buyer’s remorse. Should you choose to browse cars for sale on Amazon Autos, keep the following three tips in mind to make sure you’re not leaving money on the table. 

1. Research the Car Market

Always research demand factors for the cars you’re interested in. Are you shopping for a car that’s less popular than the hottest sellers on the market? Does it sell slower than the market average in your area? 

If so, you’re much more likely to overpay with “no-haggle pricing.” Search for inventory that has been sitting on the dealership lot the longest. Those are the cars that dealers are motivated to sell at a discount, not the ones listed on Amazon.

2. Always Ask for the OTD Price

The out-the-door (OTD) price includes the full picture, from the vehicle’s selling price to local taxes and fees. Before making a purchase on Amazon Autos, or anywhere for that matter, ask for the OTD price before you show you’re serious about any vehicle. Dealers often attempt to sneak in unwanted add-ons or fees into the sale. The OTD price will reflect that.

On a related note, don’t be a monthly payment shopper. When car dealership salespeople see that all you’re focused on is the monthly payment, that’s purely encouragement for them to throw on some extras you don’t need or want ‘for only $5 more each month.’

Remember, this money adds up to a much larger sum over time. Use this free Out-the-Door Price Calculator to get an idea for what to expect.

3. Make sellers compete for your business

Always compare the prices you see on Amazon Autos with what’s available elsewhere. Avoid going with the first offer you see. Remember to always compare the OTD price from multiple sellers and use their competing offers to your advantage. 

Taking negotiations off the table can remove much of the stress associated with buying a car. But what if AI could negotiate for you? With CarEdge Pro, you get access to fair pricing, insider data, and an AI agent that does all the talking. 

Should You Buy a Car from Amazon? 

In summary, when you buy a new or used car on Amazon, you’re still buying through a traditional dealership. The vehicles listed on Amazon Autos belong to participating dealerships; they’re not even owned by Amazon or stored within their warehouses. And while Amazon Autos may offer no-haggle pricing, there’s something crucial most shoppers overlook: you’re rarely getting the best price possible. 

If you want to skip the tense negotiation process but still walk away with a good deal, have an expert handle your deal with CarEdge. Join more than 10,000 happy drivers who’ve used our car buying service to ensure their next big purchase is one they can be proud of.