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Carvana moves into new-car dealerships
Baton Rouge Business Report • • business
Key Points:
- Carvana is expanding from online used-car sales to acquiring and operating franchised new-car dealerships, particularly those associated with Stellantis brands like Jeep, Chrysler, Dodge, and Ram.
- The company integrates its technology-driven systems into traditional dealerships, improving pricing, inventory management, and customer experience, leading to increased sales compared to previous conventional management.
- Selling new cars provides Carvana with a steady flow of trade-ins, enhancing its used-car inventory and creating additional profitable revenue streams from vehicle service, maintenance, and parts departments.
- This expansion creates a more vertically integrated business model, covering sourcing, selling, financing, and servicing vehicles, while also challenging traditional franchise dealers who see Carvana as a competitive threat.
- Automakers and dealer networks are adapting to Carvana’s hybrid approach, combining online-first retail with physical franchise operations and digital purchasing workflows.
