Amazon Just Entered The Used-Car Market—Is Carvana In Trouble?

Amazon has officially stepped into the online used-car market through a high-profile partnership with Hertz, potentially disrupting an industry already in flux. After quietly testing car listings through its Amazon Autos vertical for over a year, Amazon is now allowing customers in select U.S. states to browse Hertz’s used vehicle inventory and complete much of the transaction through its platform — a move designed to provide a more convenient and digital car-buying experience. Delivery or pick-up logistics are handled by Hertz, while Amazon facilitates discovery, payments, and logistics support. This expansion is happening alongside Amazon’s broader Q2 2025 push to deepen its marketplace capabilities, grow its ad network, and expand Prime services. The move threatens digital-first players like Carvana and CarGurus, which have struggled with cost structures and inconsistent demand, as well as legacy dealerships with underdeveloped e-commerce experiences. Amazon’s unmatched distribution scale, logistics infrastructure, and data-driven targeting may reshape how Americans buy used cars online.