Driving the news: Amazon $AMZN ( ▲ 1.1% ) Autos, the eCommerce giant’s online car buying platform, has announced new lending partnerships with Chase, Santander, and Wells Fargo.
For now, the partnerships extend to used and certified pre-owned vehicles only. But Amazon Autos does plan to expand these offerings to new car sales “in the coming months,” according to the official announcement.
How it works: Like other digital retailing platforms, customers can submit their credit applications online, and compare loan offers side-by-side before completing their paperwork online, and picking up their vehicle from a participating dealership.
Why it matters: Amazon Autos’ market disruption continues.
In addition to leveraging Amazon’s digital storefront, market reach, and sales process, partnered dealers can now offer customers loan providers they already use in-store.
But they're also relinquishing a massive amount of control over the customer relationship.
Non-partnered dealers unable to match Amazon's digital experience risk losing buyers who have come to expect that kind of convenience, if wider consumer adoption materializes.
Zooming out: The more valuable angle Amazon Autos is most likely after is collecting data on customer preferences and financing behavior, which could eventually lead to the launch of its own branded financial products or deeper integrations with Prime.

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