Ford partners with Amazon to let dealers sell used cars online

Ford franchised dealers will be able to sell certified pre-owned vehicles through Amazon.

The companies announced Monday that under this new program, customers will be able to obtain financing, process paperwork, and schedule vehicle pickups at participating Ford dealers.

This deal comes a year after Amazon allowed auto dealers to sell cars through its website, starting with vehicles from South Korean automaker Hyundai.

Detroit — Ford Motor is partnering with Amazon to allow the automaker's franchised dealers to sell certified pre-owned vehicles through the online retail giant.

The companies announced Monday that under this new program, customers will be able to obtain financing, process paperwork, and schedule vehicle pickups at participating Ford dealers. Ford said some steps, such as final signatures, may still need to be completed in person.

This deal comes two years after Amazon allowed auto dealers to sell cars through its website, starting with vehicles from South Korean automaker Hyundai.

However, the deals between Amazon and the two automakers differ, as the Hyundai deal involves new vehicles rather than certified pre-owned vehicles. CPO vehicles are used vehicles, but they have been inspected, refurbished, and certified by the manufacturer or dealer. These are considered higher-quality used vehicles than cars without the designation and carry a warranty similar to a new vehicle.

Earlier this year, Amazon also partnered with car rental company Hertz to sell used vehicles through its website.

Ford said on Monday that more than 160 of its approximately 2,900 U.S. retailers have "raised their hand" and begun the process with Amazon. The company said that about a dozen have fully joined and launched so far, and about 10 more will launch next week.

"The addition of Ford Certified Pre-Owned vehicles to Amazon Autos represents an exciting expansion of our store, giving customers access to thousands of high-quality vehicles backed by Ford's comprehensive inspection and warranty programs," Fan Jin, global head of Amazon Autos, said in a release.

Ford said it will offer a 14-day or 1,000-mile money-back guarantee (whichever comes first) on vehicles sold through the partnership with Amazon. The carmaker will also offer three CPO certification levels with varying warranty coverage.

Ford said CPO vehicles are now available on Amazon Autos in Los Angeles, Seattle, and Dallas, with plans to expand to other cities in the coming months.

With Amazon's partnerships with Hyundai and Ford, the franchised dealer is still the ultimate seller. Traditional car manufacturers have complex relationships with dealers, and many states have laws that make it difficult or illegal to sell new vehicles directly to consumers, bypassing franchised dealers.

There are less stringent laws regarding the sale of used vehicles, making it easier for companies like Carvana, Hertz, and others to sell used cars and trucks directly to consumers online.