Carvana, CarMax shares fall after Hertz announces Amazon partnership for used vehicle sales

Shares of Carvana and CarMax have fallen 3% and 4%, respectively, after Hertz announced a partnership with Amazon Autos to allow customers to browse, finance, and purchase pre-owned vehicles on Amazon. This move may impact the used car market and affect Carvana and CarMax's business.

Shares of Carvana (CVNA) and CarMax (KMX) have fallen by 3% and 4% respectively, in pre-market trading following Hertz's announcement of a partnership with Amazon Autos. This move allows customers to browse, finance, and purchase pre-owned vehicles on Amazon, potentially impacting the used car market and the business models of Carvana and CarMax.

Hertz, a major player in the car rental industry, has partnered with Amazon Autos to sell used vehicles from its rental fleet. The partnership will initially be available in four major cities: Dallas, Houston, Los Angeles, and Seattle, with plans to expand to 45 locations nationwide [3]. This move is part of Hertz's broader strategy to bolster its retail operations and increase profits [4].

Carvana and CarMax are both prominent players in the used car market. Carvana specializes in online sales and delivery, while CarMax focuses on physical stores. The partnership between Hertz and Amazon Autos could shift consumer preferences towards online platforms, potentially reducing the demand for physical dealerships like those operated by Carvana and CarMax.

Moreover, the partnership may impact the financing and pricing strategies of these companies. Hertz's ability to offer competitive financing terms through Amazon Autos could draw customers away from Carvana and CarMax, who typically offer their own financing options.

3G Capital Partners, a major investor in Carvana, trimmed its holdings in the company by 35.7% in Q2 2025, indicating a potential shift in investor sentiment [2]. This could be a reflection of the increased competition from Hertz and Amazon Autos.

The used car market is highly competitive, and the entry of Hertz and Amazon Autos into the space is likely to intensify this competition. Investors should closely monitor the developments and potential impacts on Carvana and CarMax's business models.

References:
[1] https://www.tipranks.com/news/the-fly/carvana-carmax-lower-after-hertz-says-to-list-used-vehicles-on-amazon-thefly
[2] https://seekingalpha.com/news/4485692-3g-capital-exits-amazon-draftkings-ups-pdd-and-trims-carvana-in-q2-moves
[3] https://www.theverge.com/news/762183/hertz-amazon-autos-used-rental-vehicles
[4] https://www.cnbc.com/2025/08/20/hertz-used-vehicles-amazon-autos.html