I want to bring to attention a development that I believe NADA – and its dealer members – may want to watch closely and perhaps ultimately take a position on.

Hertz Car Sales is now selling pre-owned vehicles on Amazon Autos, scaling its retail sales strategy well beyond traditional rental operations. On the surface, this might sound like just another digital remarketing channel. But when we step back, the implications for franchised dealers – and the historic balance between OEMs, daily rental companies and retail distribution – could be significant.

The Historical Context

Those of us who’ve been in the business for a while remember the last time large rental companies such as Hertz and Avis built major retailing operations right alongside franchise dealerships. The dealer body and NADA pushed back hard. In response, manufacturers developed large-scale buyback programs: rental companies were incentivized to run vehicles for a short period, then return them to the manufacturer, which would redistribute them through closed dealer auctions. This ensured that supply flowed back to the franchise system.

That model helped maintain equilibrium; OEMs kept plants running, rental companies got fleet incentives and dealers retained a first look at late-model inventory.

What’s Different Now

Fast forward three decades. We’re no longer just talking about retail lots on a highway. We’re talking about Amazon – one of the most powerful consumer marketplaces in the world – pairing with large-scale fleet owners who already buy vehicles at prices far below dealer net.

Amazon has piloted car sales with franchise dealer partners, but perhaps that was never the endgame. With Hertz as a partner, we now see the potential for a scaled, credible, consumer-friendly used-vehicle platform that bypasses franchised dealers entirely.

And this isn’t limited to the one- and two-year-old cars of the past. Fleet operators today have multiple downstream channels:

• Rental fleets (first 12-18 months)
• Car-sharing fleets like Zipcar (another 1-2 years)
• Subscription programs like Flexcar (targeting dealer customers directly, even advertising “no more deceitful dealers” on its site)

That creates a steady, controllable pipeline of 1- to 4-year-old vehicles, which could bypass franchise retail entirely.

Note, too, that Hertz now claims a fleet size in the U.S of over half a million units, and the top 10 rental car companies control a fleet of approximately 2.5 million vehicles or more. This represents a significant number of potential retail used-car sales, as compared to franchised dealer retail used-car sales (10 million to 12 million or so).

The Question for Dealers

The obvious question is whether this new Amazon/Hertz model poses a genuine threat to franchise dealers or if market realities will temper its impact. But as supply normalizes and Hertz leverages below-dealer-cost acquisitions, it’s not hard to imagine their bottom line soaring while dealer competition for late-model used cars intensifies.

Three decades ago, this issue galvanized dealers and required manufacturer adjustment. Have times changed so much that it’s not even a concern anymore? Or are we just waiting for it to get more noticeable before anyone raises the flag?

A Call to Attention

Mike, perhaps this is one of those inflection points where NADA, on behalf of franchised dealers, should at least start the conversation. If Amazon becomes the digital showroom for rental fleets – not just new or CPO units – it could reshape the retail landscape in ways the dealer body cannot afford to ignore.

I welcome observations, comments and perspectives from dealers and industry colleagues. Are we at the start of a quiet shift or a major disruption?

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