Ford just became the second major automaker to sell vehicles through Amazon's online marketplace, launching certified pre-owned car sales in three cities today. The move signals growing momentum for digital car buying as traditional dealerships face pressure to modernize their customer experience.
Ford is betting big on Amazon's ability to fix one of America's most frustrating shopping experiences. Starting today, customers can browse, finance, and buy certified pre-owned Ford vehicles through Amazon Autos, though they'll still need to pick them up at local dealerships. The partnership makes Ford the second automaker to join Amazon's automotive marketplace, following Hyundai's launch earlier this year across 48 cities. But Ford's taking a more cautious approach, limiting availability to just three markets: Los Angeles, Seattle, and Dallas. Amazon says it expects more cities soon, but the limited rollout suggests both companies are testing the waters before going national. The dynamics here are fascinating. Ford's dealers still hold all the cards - they set prices, handle service, and schedule deliveries. Amazon essentially becomes a sophisticated lead generation platform, connecting its 310 million active users to local Ford dealerships. "It's about delivering the best of both worlds to our customers," Robert Kaffl, Ford's executive director of US sales and dealer relations, said in a company release. That customer base is Amazon's biggest selling point to skeptical dealers. With over 310 million active users already comfortable buying everything from groceries to gadgets online, the platform offers dealerships access to shoppers they might never reach otherwise. Amazon's pitch to dealers focuses on being "a new sales channel that connects them with millions of Amazon customers" - and those numbers are hard to ignore. The vehicles themselves come with Ford's full warranty backing. Every car listed has been "inspected, reconditioned, and comes with a Ford warranty, Ford Rewards points, and in some cases, a money-back guarantee," according to Ford's announcement. But don't expect to find brand-new F-150s on the site - this is strictly a certified pre-owned play. This matters because car shopping consistently ranks as one of consumers' most dreaded experiences. Cox Automotive's research shows dealership interactions top most people's frustration lists, creating an opening for tech companies to reimagine the process. Tesla pioneered the direct-to-consumer model, cutting out dealerships entirely and letting customers buy cars like they would any other product online. But Tesla's approach runs into legal roadblocks - 48 states have laws restricting or banning manufacturers from selling directly to consumers. These franchise laws, designed to protect independent dealers, have created a complex web of as Tesla fights for market access. Amazon's strategy sidesteps this entirely by keeping dealers in the loop. Instead of disrupting the franchise system, Amazon Autos works within it, making dealers partners rather than competitors. This approach should face fewer regulatory challenges while still modernizing the buying experience. The timing makes sense for both companies. Ford's been pushing digital transformation across its operations, from to software-defined cars. Adding Amazon's e-commerce expertise helps Ford reach younger, tech-savvy buyers who expect seamless online experiences. For Amazon, automotive represents a massive untapped market. Cars are typically the second-largest purchase most Americans make after homes, and the used car market alone was worth over $1.5 trillion in 2023. Even capturing a small percentage of those transactions could generate significant revenue for Amazon's retail operation. The partnership also feeds Amazon's broader ecosystem. Car buyers might add accessories, maintenance products, or even subscribe to Amazon services as part of their purchase journey. That customer lifetime value extends far beyond the initial vehicle sale.
