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Carvana Auctions: The Secret Used-Car Engine
2 Feb
Summary
- Carvana operates 56 auction sites nationwide selling 1,000 cars weekly.
- These auction sites are separate from the company's online buying experience.
- Vehicles sold at auction range from nearly new Teslas to older 'as is' models.
Carvana, known for its online used-car sales, also operates a significant network of physical auction sites across the United States. These 56 locations are not part of the company's public-facing marketing, which emphasizes a seamless online purchasing experience.
Instead, these auction facilities are hubs where 1,000 vehicles are sold each week. Cars are sourced from various channels, including expiring leases, trade-ins, and retired rental fleets. Carvana utilizes these auctions to dispose of models it doesn't intend to list on its own platform, while also acquiring vehicles for its own inventory.
The auctions themselves feature a wide range of vehicles. Recent models, such as a 2024 Tesla Model Y, can fetch bids around $30,000. In contrast, older vehicles, like a 2006 Isuzu Ascender, are sold "as is" starting at lower prices, highlighting the diverse market served by these events.
