Amazon is officially selling cars, Tekion files lawsuit against CDK Global, used car demand stays high

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Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. If you prefer to listen to an audio version of this newsletter, click here. Let’s dive in.

1. Amazon officially starts selling new Hyundai vehicles online

Amazon is expanding further into automotive with its new car shopping platform, Amazon Autos, launched in partnership with Hyundai. 

Driving the news: Announced in 2023 and debuting just days ago, the platform allows buyers in 48 cities to browse, order, finance, and schedule vehicle pickups — all online.

• Shoppers can search local dealer inventory by make, model, and features, trade in their current car with instant valuation, and view upfront pricing. 

• And financing or full payment is handled directly on the site, streamlining the process to match Amazon’s signature convenience.

Beyond car sales — Amazon is gaining ground in auto parts, and grew its market share to 12.1% by late 2023. And its AWS cloud service powers automakers like Hyundai, and its robotaxi startup, Zoox, hints at future ambitions in autonomous vehicles. 

While Amazon’s full plans remain unclear, success with Hyundai could lay the groundwork for partnerships with other automakers and further disrupt the industry.

(Go deeper: 2 min. read)

But right now — Amazon Autos is limited to selling new cars just as used ones start to attract higher-tier loan borrowers…

2. Prime auto loan borrowers lean toward the used car market

The auto finance market is finding its footing, but affordability pressures are reshaping buyer behavior. In Q3, even Prime and Super Prime borrowers leaned more toward used vehicles, according to Experian’s latest data.

• 66% of Prime borrowers financed used cars last quarter, up slightly from 65.47% a year ago.

• And 48.92% of Super Prime borrowers opted for used, compared to 47.96% in 2023.

• And despite a rebound in vehicle inventory and lower interest rates (from 7.09% to 6.61% year-over-year), new vehicle prices are still too high for many

The reason? The average amount financed for used cars fell $1,195 to $26,091, while monthly payments dropped to $520. In contrast, financing for new vehicles climbed to $41,068, with payments averaging $737.

Bottom line: Borrowers who might have stretched to buy new cars are now probably wary — fearing rising delinquencies and negative equity risks.

(Go deeper: 2 min. read)

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And while used car prices in general have dropped sharply over the past two years, the decline has slowed down in the second half of this year…

3. Wholesale used car prices up year-over-year in Nov.

Wholesale used vehicle prices posted their first year-over-year increase since August 2022, rising 0.2% in November, according to the Manheim Used Vehicle Index.

• From November to December, prices in the Three-Year-Old Index fell 0.9% — a smaller dip than the typical 1.2% decline for this time of year. 

• Dealer activity remained robust, with a 55.6% average sales conversion rate, higher than the three-year average of 50.7%. 

• And Manheim Market Report Retention, which reflects how closely auction prices align with market values, held steady at 99.6%.

By segment, compact cars, midsize cars, SUVs, pickups, and luxury vehicles all rose higher month-over-month in November. Sedans were the standout, bucking year-over-year declines seen in most major segments.

Bottom line: Tight supply in wholesale and retail markets continues to support prices. And dealer demand could also help keep wholesale values elevated through the end of the year.

(Go deeper: 2 min. read)

But whether selling new or used — dealers are seeing a boost to their Google review ratings…

4. Dealer reputations improve online, but customers still have gripes

Widewail’s latest data shows dealership Google ratings are up to an average of 4.56 stars in 2024, compared to 4.44 last year. Negative reviews have dropped 21%, and engagement is growing.

Behind the numbers, however, familiar challenges linger. 

• Poor communication remains the top driver of bad reviews, with service and sales departments seeing complaints rising. 

• And financing teams are also in the spotlight as affordability pressures and post-COVID incentives add complexity. 

• On top of that – negative mentions of staff overall are up nearly 20%.

Big picture: As affordability challenges loom and customer expectations evolve, the dealerships that prioritize transparency and invest in their staff will stand out. With progress already underway, there’s a clear opportunity to strengthen relationships with customers.

(Go deeper: 3 min. read)

As dealerships work to improve customer trust and satisfaction online, another battle is brewing behind the scenes — this time over control of the data that powers those very relationships…

5. CDK Global fires back at Tekion’s anti-trust lawsuit

The battle between dealership management system (DMS) giants Tekion and CDK Global is heating up. 

• Tekion has filed a federal antitrust lawsuit accusing CDK of unfair practices, including withholding dealership data to block clients from switching platforms. 

• CDK, which serves roughly 50% of U.S. dealerships, denies the claims, calling the suit a “marketing stunt.”

At the center of the case is control over dealership data. Tekion argues that CDK’s alleged tactics, including delays in transferring dealer data, aim to retain market share despite “outdated” technology. 

And the stakes are high. If Tekion prevails, it could disrupt the DMS market, setting a precedent for easier platform switching and greater data access for dealers.

Bottom line: The lawsuit could reshape how dealership data is managed, forcing DMS providers to compete on innovation rather than exclusivity.

(Go deeper: 1 min. read)

Three great opportunities on the CDG Job Board right now:

• Toma: Marketing Director (remote, San Francisco).

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• Stellantis shuffles leadership as Tim Kuniskis returns to take over Ram.

• General Motors pulls plug on Cruise robotaxi funding.

• Missed calls are costing dealerships major service revenue.

• Dealer optimism surges post-election.

• Trump transition team recommends ditching crash report law for AVs.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

🚨 Hey you! Before you go…

Thanks for reading. Hit reply and let me know if you found this week-in-review valuable or have any feedback. I’ll see you next weekend.

—CDG

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