Ford Partners with Amazon to Sell Certified Used Cars, but Limitations Remain
Hyundai Enables Fully Online Services Since 2023
Hyundai Capital Offers Special Interest Rate Benefits
Recently, news that certified pre-owned vehicles from the well-known American car brand Ford can now be purchased on Amazon Autos, the world’s largest online shopping platform, has been making headlines. Certified pre-owned vehicles are used cars sold directly by the manufacturer with a quality guarantee. This is significant in the U.S. market, where purchasing vehicles through dealerships is the norm, as it marks the beginning of non-face-to-face certified pre-owned car purchases via online platforms.
However, not all steps of purchasing a Ford certified pre-owned vehicle can be completed online yet. Currently, only part of the certified pre-owned car buying process is available online, and customers still have to visit a dealership in person to take delivery of the vehicle. If a customer wants to purchase a used car through Ford’s own certified pre-owned website, rather than Amazon, both the purchase and financing contracts still require consultation with a dealer. At present, the certified pre-owned car market in the U.S. is only just entering the phase of online transition via Amazon.
Although the United States has a long history of automobile manufacturing and an advanced automotive culture, the environment for buying cars online is not as well established as one might expect. In fact, South Korea is far ahead in this area, as certified pre-owned vehicles can already be purchased entirely online (without face-to-face interaction) in the country.
Since 2023, Hyundai Motor Company has operated a system that allows customers to handle everything online-from selecting a vehicle and signing a contract to financing review and delivery service-through its own online sales platform, Hyundai Certified Pre-Owned. Customers can receive their contracts directly from the website without visiting a dealership and take delivery of their vehicles at any location they choose, such as their home or workplace, via a delivery service. If the customer maintains a clean accident record for up to three days after receiving the vehicle, they can test drive the car without mileage limitations before deciding whether to complete the purchase.
The advantages of Hyundai Certified Pre-Owned go beyond the convenience of online contracts. The platform also addresses long-standing concerns about vehicle quality in the used car market, offering services that enable customers to purchase with confidence. Every vehicle listed on the Hyundai Certified Pre-Owned platform must pass over 200 detailed inspection items. In addition, every customer who purchases through Hyundai Certified Pre-Owned receives a minimum one-year, 20,000-kilometer warranty from Hyundai Motor Company starting from the time the vehicle is transferred. Customers can conveniently access warranty services such as vehicle maintenance at Hyundai’s nationwide service network, including Hi-Tech Centers and Hyundai Bluehands locations.
Financial services also play a key role in enhancing customer convenience in South Korea’s online certified pre-owned vehicle market. On the Hyundai Certified Pre-Owned website, customers can check the condition and price of their desired vehicle, as well as available financial services for their purchase. Hyundai Certified Pre-Owned offers a one-stop process in partnership with its exclusive financial institution, Hyundai Capital, covering everything from confirming purchase conditions to utilizing financial products such as installment plans.
Currently, Hyundai Capital is offering exceptional interest rate benefits for Hyundai Certified Pre-Owned customers. Those who purchase vehicles through Hyundai Capital’s installment products during the Hyundai Certified Pre-Owned Auto Installment Special Promotion can receive a 2 percentage point discount, allowing them to buy vehicles at interest rates as low as 2.3%. Considering that the typical interest rate for used car installment plans is 5-10%, and even high-credit customers usually get rates around 3.5%, Hyundai Capital’s low rates are an extraordinary benefit rarely seen in the used car market. For example, if a customer purchases a Grandeur priced at approximately 34 million won with a 60-month installment plan at a 2.3% interest rate, they can expect to save about 1.82 million won in purchasing costs compared to the pre-discount rate of 4.3%.
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