Carvana Sells New Cars Online, Disrupting Dealers

Carvana is expanding its online sales strategy to include new cars and trucks, aiming to disrupt the established franchised dealership model. The company has acquired several Stellantis franchised dealerships, but these locations will primarily serve as service centers and test drive locations rather than traditional sales floors.

Customers will continue to purchase new vehicles entirely online, mirroring Carvana's successful approach to used car sales. This strategy emphasizes transparent, non-haggling pricing and a "hassle-free" customer experience. Carvana president of special projects, Tom Taira, stated that the online-first approach is a fundamental difference from how traditional dealers operate.

The company acquired Stellantis dealerships for approximately $171 million, excluding its most recent purchase. Carvana's goal is to increase market share and customer base, potentially creating a ripple effect across the U.S. dealership network, which generated over $1.3 trillion in sales last year.

Carvana has been approved as a certified website provider for Stellantis, allowing seamless integration of new vehicle sales into its online platform. The company is also adapting its service operations to align with its transparent pricing and customer-centric approach, aiming to replicate the success of its used vehicle business.