Automaker Ford announced today that certified pre-owned Ford vehicles will be made available for sale through Amazon Autos. The Amazon Autos program works with participating local dealerships to allow customers to purchase vehicles through Amazon’s interface. Customers can also secure financing for vehicles through the website.
Ford’s program will offer a 14-day, 1,000-mile period during which vehicles can be returned for a refund. Three tiers of Ford certification will be available: Gold Certification is reserved for newer cars under 80,000 miles, denoting a more rigorous inspection and an expanded 12-month, 12,000-mile warranty. Blue Certified vehicles can be up to 10 years old with 150,000 miles, and have a 90-day, 4,000-mile warranty. Certified electric vehicles are up to 6 years old with 80,000 miles, and come with the same 12-month, 12,000-mile warranty as Gold Certified vehicles. The program is rolling out now in Los Angeles, Seattle, and Dallas, with plans to expand.
Amazon Autos expanded to include certified pre-owned vehicles in August, allowing dealers to list their used vehicle inventories on Amazon. Amazon requires that used vehicles be offered with at least a 30-day, 1,000-mile warranty, and allow for a 3-day, 300-mile return policy. Hyundai was the first automaker to embrace the program, and remains the sole other participant at present.
Despite the news, shares of Ford have fallen more than 1% on the day. Amazon experienced a similar drop but has rebounded slightly. CarMax stock fell nearly 2% on the news, with many seeing the partnership as a direct threat to the company’s business model. Carvana, however, rebounded after an initial sell-off, likely due to its lack of reliance on traditional dealerships.