The Arrival of Amazon Auto
Buying a car can be a bit of a mixed bag. Sure, getting a new set of wheels is exciting, but the process of actually buying it is known to be a stressful endeavor. Uncertainty surrounding pricing in general, the need to negotiate to advocate for yourself, and the large cost associated can make the experience stressful and overwhelming. Amazon is looking to change this by giving you more control over the process, starting with clear pricing and a smooth online experience.
On December 10, 2024, Amazon launched their new service, Amazon Auto, in forty-eight cities. On their platform you can now browse new Hyundai models, pick the one you want, and schedule a time to pick it up at the dealership - all without leaving your couch. Currently new Hyundai vehicles are the only ones available, but Amazon plans to expand to more automakers and cities in 2025.
How Amazon Auto Works
Amazon Auto simplifies car buying with some key features:
- Browse Online: Search for cars by model, trim, color, and features.
- Transparent Pricing: The price you see is the price you pay. It’s all inclusive with features, fees, and taxes listed out as line items. No more negotiating.
- Trade-In Options: Estimate your current car’s value and handle the trade-in online.
- Schedule Pickup: Finalize your purchase and pick up your new car at the dealership.
Amazon Auto represents a broader trend in the automotive industry toward digital-first, consumer-centric solutions. By offering features like transparent pricing and online trade-in processing, Amazon aligns with the growing demand for convenience and simplicity in major purchases.
But while Amazon Auto makes car shopping more convenient, one thing it doesn’t always cover is securing the best financing.
Why Credit Unions Are the Smart Choice for Financing
As part of the shopping experience, you can choose to pay in full or apply for financing through the dealership. Amazon only serves as the intermediary between the consumer and the dealership. Even though their platform facilitates the sale, the dealership is still the Seller of Record when it comes to the vehicle. And even if Amazon was the seller (which I’m sure will happen in the future) you still have credit union financing available. Amazon made the shopping experience easier, but with preapproval, lower rates, and flexible loan options, you can simplify the financial side of things with a credit union – and make sure you’re getting the best deal possible. Here’s how we can help:
1. Get Preapproved Before You Shop
Getting preapproved for an auto loan through your credit union puts you in control. You’ll know exactly how much you can afford before you even start browsing. And even better, with the transparency and specifics offered through the platform, when you reach out to your credit union you can provide them with the details of the car you have your eye on to laser in on what is needed.
Less Stress: Preapproval gives you peace of mind and removes the guesswork.
A Clear Budget: You won’t fall in love with a car that’s out of your price range.
2. Lower Interest Rates
Credit unions typically offer lower interest rates compared to banks or dealership financing. Credit unions are owned by the people who bank with them. This means that instead of dividends being sent to shareholders on Wall Street like traditional banks, profits are put back into the credit union to enable lower loan rate offer. A lower rate can make a significant difference:
Lower Monthly Payments: You’ll pay less each month, freeing up room in your budget.
Savings Over Time: Even a small drop in your interest rate can save you hundreds—or even thousands—over the life of your loan.
3. Flexible Loan Terms
Credit unions work with you to create a loan that fits your needs. Whether you want to focus on lower monthly payments or paying off the loan faster, they’re typically able to offer more flexible terms so you can find the right balance that fits with your budget and long-term goals.
A Smoother Car-Buying Experience
Amazon Auto offers a more modern, less stressful way to buy a car, which is a welcome change for many people. With clear pricing and online tools, it removes some of the biggest frustrations of the car-buying process.
At the same time, your credit union can help you tackle the financial side of things, ensuring you get the best possible deal. By combining Amazon Auto’s convenience with lower rates and flexible options from your credit union, you can enjoy a smoother experience that saves you time, stress, and money.
If you’re thinking about buying a car, talk to us first about getting preapproved for refinancing once the sale goes through on the Amazon Auto platform. We’re here to help you get the most out of your next car purchase—no matter how you shop for it.