Latest news with #FanJin
Yahoo
22-03-2025
- Automotive
- Yahoo
Amazon Used Car Sales? Apparently, it Could Happen
Online shopping for cars isn't a new concept, especially in a post-COVID world. But it could become even more mainstream if the largest online retailer in the world, Amazon, decides it's time to add used auto sales to its portfolio. It may be more likely than you think, considering Amazon already peddles new Hyundai vehicles to shoppers in 68 markets, including some US cities. 'We're adding more dealers, and we're excited to add not just new inventory for those dealers but also used inventory,' said Fan Jin in talks with Automotive News. Jin is the director of Amazon Autos and revealed that the online superstore is 'getting into used cars soon' following the Hyundai new car sales pilot program. And it isn't limited to car sales; Amazon Autos is bringing the entire dealership experience online. "Our focus is really on dealers and how we serve the whole dealer—all that they want to sell in the way that they want to sell them," Jin says. That includes things like service contracts and maintenance packages, which are huge profit generators for dealers that often make more than the physical car itself does. The car sales world changed dramatically in 2020, as COVID-19 made online sales mandatory as opposed to a convenient option. If Amazon is considering moving into used car sales, they clearly have gleaned data that indicates it's worthwhile. Leveraging their already copious amounts of buyer info also allows more efficient and lucrative automotive advertising opportunities—a market apparently already worth as much as $30 billion, just in the United States. Combining all of that intel makes Amazon a great place to market cars, but there's even more value in selling aftermarket products—including warranties and service contracts—that buyers are likely to sign up for. But even teraflops of data and advertising power notwithstanding, online car purchases are already popular. Outfits like Autotrader, CarGurus, et. all make substantial amounts of money doing exactly what Amazon is looking into. What's more, some analyses have concluded that the used car market will more than double in value by 2032 to a tremendous $885 billion. That kind of cash flow becomes impossible to ignore for a company always looking to grow, especially when Amazon seems poised to provide a more comprehensive shopping experience than the existing alternatives. There are still hurdles for Amazon as it tries to onboard dealers. For new vehicles, OEMs will be dipping their toes in carefully to ensure the brand is protected and presented well. Used vehicles will be less involved, but dealers will be closely watching their bottom line to ensure whatever traffic they're getting from Amazon's service recoups the cost of the service while paying dividends. No dealer is looking for "just another listing service"—and Amazon Autos' scope seems to go a bit beyond that. Either way, Amazon's expansion will likely demand the competition steps things up, because rivals that offer less won't be around for long if they can't offer similar services.
Yahoo
21-03-2025
- Automotive
- Yahoo
Analysts remain bullish on Carvana as Amazon eyes used-car sales
According to a news report on Wednesday, Amazon (AMZN) is eyeing the sale of used cars. JPMorgan calls the e-commerce giant's imminent expansion into used car sales 'not new news,' while BofA views the move as not directly competitive with Carvana (CVNA). Piper Sandler upgraded the latter to Overweight on the shares' recent selloff. Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. EYEING USED-CAR SALES: Amazon is eyeing the sale of used cars as the company continues to refine its new car-shopping platform with customers and dealers in certain U.S. markets, Carly Schaffner of Automotive News reports. Publicly traded companies in the used car sales space include CarMax (KMX), AutoNation (AN), Vroom (VRM), Carvana, and Sonic Automotive (SAH). NOT NEW NEWS: JPMorgan notes that in an AutoNews podcast earlier this week and as covered by a related article yesterday, Amazon Autos expressed its intentions to broaden the scope of its nascent online vehicle sales initiative to include used vehicle sales. The firm had previously learned of Amazon's intentions to expand into used car listings during its meetings with their sales and business development teams at CES 2025 and NADA Expo. JPMorgan views Amazon's platform listings and transaction capabilities as essentially providing an alternative lead generation channel for new and used car dealers, and sees minimal risk of disintermediation of the dealer channel — AutoNation, Asbury Automotive (ABG), Group 1 Automotive (GPI), Lithia Motors (LAD), Penske Automotive (PAG), Sonic Automotive, CarMax, Carvana — given the complexities involved in franchise regulations and used car sourcing/reconditioning as well as the criticality of a robust service network. The firm also sees minimal risk to franchise dealer Finance & Insurance given it remains a significant profit driver for the stores and dealers are unlikely to list their inventory if F&I commissions are not guaranteed/compensated. NOT DIRECTLY COMPETITIVE: BofA notes that Amazon Autos general manager Fan Jin appeared on the Automotive News Daily Drive podcast this week, providing details on Amazon's push into the automotive sector and stating that Amazon is 'getting into used cars soon here in a little bit.' Amazon Autos does not provide delivery or recondition used vehicles itself like Carvana and has shown no intention to do so, notes the firm, which also points out that its dealer partners see lower attached rates for warranties and service contracts. Amazon's internal surveys reportedly show customers increasingly willing to buy cars online and BofA thinks normalizing these types of online purchases can benefit the whole online auto sector, including Carvana, adding that it sees 'multiple reasons' why this move is not directly competitive with Carvana. The firm, which argues that Amazon's model is more competitive to third-party listing sites like TrueCar (TRUE) and CarGurus (CARG), maintains a Buy rating and $220 price target on Carvana shares. OF NOTE: This morning, Piper Sandler upgraded Carvana to Overweight from Neutral with an unchanged price target of $225. Most used car transactions don't span international borders, and demand is relatively stable, regardless of the macro environment, the firm tells investors in a research note. Further, Piper believes 'staid business models and extreme fragmentation have left the door open to disruptors.' Given this, the firm upgraded both Carvana to Overweight following the recent share pullback. Since market share is starting from a low base, Piper expects multi-year revenue growth of over 20% annually, with even faster earnings growth. The firm thinks the stock can grow despite macro unease and/or higher tariffs. PRICE ACTION: In morning trading, shares of Amazon have gained about 1.5% to $198.49, while Carvana has jumped about 10% to $193.66. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on AMZN: Questions or Comments about the article? Write to editor@ Apple (AAPL) in a Stew as it Sheds $1B a Year Playing Catch Up With Streaming Rivals Amazon's imminent expansion into used car sales 'not new news,' says JPMorgan Amazon Auto move not directly competitive with Carvana, says BofA Nvidia-Backed (NVDA) CoreWeave Sets IPO Pricing at $47 to $55 per Share Amazon Stock (AMZN) Rises after Expanding Its Presence in the Auto Market
Yahoo
19-03-2025
- Automotive
- Yahoo
Amazon Wants To Get Into The Used Car Business
Amazon, the seller of everything, apparently wants to try its hand at selling used cars next. Fan Jin, the director of the online retail giant's Amazon Autos unit, says the company will be "getting into used cars soon." It recently started selling Hyundais on its Amazon Autos platform. Jin made the announcement on Automotive News' Daily Drive podcast earlier this week. She says people in 68 markets can now buy a new Hyundai on Amazon. The company is working to get as many dealers as possible signed up with them and able to sell both their new and used inventories. The retainer has also expressed interest in working with other car manufacturers to get their new vehicles on its platform. Amazon's goal here isn't to be like an AutoTrader or type of used car market. In Jin's mind, it is more of a Carvana-style system where everything can be done on the website. Here's more from AutoNews: "We see ourselves as providing this channel for dealers for a fully e-commerce transaction," she said. Delivering an online marketplace for used cars could position dealers to compete with the likes of Carvana, which sells used vehicles directly to consumers via a fully digital environment. Since Amazon Autos is relying on dealers for their inventory, the platform can be leveraged as an omnichannel for those who want to shop online and visit a dealership during their transaction. Read more: Hertz Is Selling Its Fleet Of Rental Tesla Model 3s For Cheap Jin does admit that even the most tech-forward of buyers probably would want to visit a dealership first to physically check out what they're planning to purchase before actually doing so. "They may start online, then go to the dealer to look and have a test drive, then come back, think about it, and then finish the purchase online," she said. The cars themselves aren't Amazon Auto's only interest, though. The company is reportedly mulling over the idea of selling optional add-ons like extended warranties, vehicle service contracts and maintenance packages, according to Automotive News. We're rapidly entering a brave new world for car buying, and it would seem Amazon is the leader. I've had moral qualms with Amazon in the past, but I suppose there's really nothing wrong with giving customers another choice for how to buy their next vehicle. Nobody really likes going to the dealer, so maybe an all-online experience like this one could be a welcome addition to the market. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.
