Investing.com -- Shares of auto retailers fluctuated Wednesday following a report that Amazon (NASDAQ:AMZN) is exploring a move into the used-car market, raising concerns about increased competition in the sector.
According to Automotive News, Amazon is considering expanding its car-shopping platform—which currently allows customers to browse and purchase new vehicles in select U.S. markets—to include used cars.
The report initially sent shares of major used-car retailers lower, though most later recovered.
Shares of Carvana (NYSE:CVNA) are trading higher after a decline earlier in the session, while CarMax (NYSE:KMX) remains negative, down 0.4%.
Investors are weighing the potential impact of Amazon’s entrance into the industry, which could reshape online car buying with the company’s vast logistics network and digital marketplace expertise.
Amazon first announced plans for its new car shopping platform in 2023, partnering with select dealerships to facilitate online vehicle purchases.
While details remain limited, Amazon’s presence in the used car market space could pressure players like Carvana and CarMax.
The auto retail sector has already faced volatility from changing consumer demand and rising interest rates.